NIGERIA and other sub-Saharan African countries can raise between $5 and $10 billion yearly through the Diaspora bonds , according to a new report jointly put together by the World Bank and the African Development Bank.
Recorded remittances into Africa, which grew four-fold between 1990 and 2010 to reach nearly $40 billion in 2010, are the continent’s largest source of foreign capital after foreign direct investments.
The report, “Leveraging Migration for Africa: Remittances, Skills, and Investments,” a collection of data from new surveys, made available to The Guardian yesterday by the World Bank country office in Abuja also finds evidence strongly confirming that migration and remittances reduce poverty in communities as remittances lead to increased investments in health, education, and housing in Africa. Africans in the Diaspora also provide capital, trade, knowledge, and technology transfers.
Stressing the need for African governments to strengthen ties between Diasporas and home countries, protect migrants, and expand competition in remittance markets, lead economist at the World Bank and main author of the report warned that if this did not happen in good time “the potential of migration for Africa remains largely untapped.”