Africa Economy: Kenya seeks to tap diaspora investments

Kenya kicked off a three-day diaspora investment conference to seek ways of tapping the lucrative diaspora investments which has increased in the recent past.

The Kenya Diaspora Easter Investment Conference 2015 offers a unique opportunity for Kenyans in the diaspora, policymakers and private sector players to build strong partnerships that will enable the diaspora to seize investment opportunities and thus contribute to the development agenda of the country.

President Uhuru Kenyatta, who officially opened the conference, assured that the government has scaled up efforts to address challenges facing the Kenyan diaspora, saying diaspora diplomacy is now one of the pillars of the country's foreign policy.

He said the government is focused on creating an enabling environment that will integrate the Kenyan Diaspora and able them to invest in the nation's development.

"The main thrust must be to unlock and maximize the hitherto untapped promise of the diaspora and use this energy to carry our country to greater heights, while at the same time meeting the needs and expectations of Kenyans abroad at every point in time," he said.

Kenyatta noted that Kenyans living abroad remitted 1.5 billion U.S. dollars last year. While acknowledging the role of the diaspora in the development of the country, he emphasized the need for the remittances to be structured.

He cited the launch of the African Institute for Remittances in Nairobi in November last year as one of the measures taken to encourage diaspora engagement in the country's economic growth.

"The institute will, among other things assist in capacity building of member states of the AU, remittance senders, recipients, and other stakeholders, to manage remittances as a strategic asset," he said.

The President added that the Government has embarked on deepening its engagement with the diaspora beyond remittances.

"Apart from the remittances, which contribute significantly to our economic development, we have enormous potential in our diaspora's skills, knowledge and expertise that should be tapped to positively contribute to the growth of our economy."

He said the government is committed to the implementation of the National Diaspora Policy, which he launched early this year.

Kenyatta also underscored the importance of security in attracting investment from the Diaspora and other international investors and affirmed that security has been beefed up.

Kenyan Diaspora is estimated at three million, with majority being in the U.S, Canada, Britain, Germany, Scandinavia, Australia, South Africa and the Middle East.

Foreign Affairs Cabinet Secretary Amina Mohamed said her ministry is developing incentives and tailor made investment packages to encourage Kenyans abroad to direct their remittances towards productive ventures both at the national and county levels.

She disclosed that her ministry is also exploring other combinations of initiatives such as lowering the costs of diaspora transactions and aggregate diaspora remittances and investments for optimal impact.

Mohamed cited preferential duty waivers and other concessions for diaspora businesses, extension of formal banking opportunities and cheaper costs for financial transfers, and the issuance of Diaspora bonds as other incentives on the offer. Endi