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FAO reaffirmed its commitment to mobilize diaspora contributions to rural development through the participation in the Global Forum on Remittances, Investments and Development (GFRID), which took place in Nairobi on 14-16 June 2023.

The forum, organized every two years by IFAD’s Financing Facility for Remittances together with the UN Office of the Special Adviser on Africa, and the World Bank, aims to discuss how to maximize the development impact of remittances and diaspora investments.

This year’s edition brought together over 600 stakeholders in the field of migration and development to discuss opportunities and challenges in the post-pandemic landscape, with a focus on main remittance corridors and diaspora investments to the countries of origin. Over the three days, the GFRID facilitated exchanges of best practices as well as networking among different actors, including through a Remittance Marketplace.

As stated by Mr Luciani, Head of Unit Migration and Forced Displacement, DG INTPA, “it is time to take advantage of diaspora investments for sustainable development in view of 2030”. Diaspora is a crucial partner for the European Union, and the European Commission is committed to supporting programmes and projects that aim to facilitate diaspora financial and non-financial contributions back home.

FAO successfully contributed to the Summit through a video message by FAO’s Chief Economist, Mr Torero, and presentations in two technical panels.

Andrew Bamugye, Executive Secretary of theUganda Diaspora Agribusiness Network (UDAN), set up through the Strengthening capacity to harness the positive effects of migration project, presented the successful experience of the network and debated about how to enhance diaspora contributions to agribusiness. UDAN, an active network of Ugandan diaspora agripreneurs based in Europe, USA and Japan, acts as a bridge between Ugandan diaspora agripreneurs and migration and rural stakeholders in Uganda..  

FAO-Uganda, represented by Mr Antonio Querido, contributed to the panel “GCM objective 19 - Create the conditions for migrants and diasporas to fully contribute to sustainable development in all countries”. Mr Querido presented FAO’s role in supporting diaspora to invest back home, including by sharing the main results and lessons learned from the project Strengthening capacity to harness the positive effects of migration in Uganda. FAO is committed to enhance the conditions for diaspora to contribute financial resources to agribusiness and rural employment, while also empowering diaspora agripreneurs and networks.

The GFRID’s participants concurred with a number of preliminary findings that will be presented at the SDG Summit in New York on 18-19 September.. Below a snapshot of some of the key recommendations:

• It is time to recognize the difference between remittances and diaspora investments. They are very different in scope and needs, and require unique and adapted approaches to fully maximize their developmental potential.
• The economic contribution of the diaspora back home is recognized as a development priority, but data on diaspora investments is still very limited. More realistic data on the amount invested by migrants is crucial for the design of enabling policies and the creation of financial vehicles adapted to the need of the migrant investors.
• “Know your Diaspora investor” is essential to move from simple transactional acts to real transformational impact. Reliable surveys and thorough analysis of the targeted diaspora are a necessary initial step for the creation of efficient investment vehicles.
• Diaspora investments are increasing, but more needs to be done to improve impact. Some models have emerged, including bonds and related financial products, crowdfunding platforms, peer-to-peer mechanisms and other investment funds. There is a need for more dedicated approaches and customized instruments to pool individuals’ resources into secure vehicles.
• The potential of diaspora investment for climate adaptation is enormous but still under-exploited. The GFRID engaged on the possibility of new options and incentives that will enable remittance families to more effectively build resilience against climate-related risks and economic and social fragility
• Lack of financial education continues to be a bottleneck for the uptake of financial products. Many people are limited in making informed decisions about remittance products or even bundled ones. Financial and digital education attempts must be scaled up.