African Diaspora: Back Home Investment (BHI) is the best investment for Africa…
African Diaspora, why should you invest in Afica and start a business in Africa? There are many reasons and one is simple: you will make more profits than anywhere else in the world!
With the money you have or you send regularly back home, you can not only make profits but you can lift the whole continent out out poverty. You wonder how.....
How African Diaposra can transform Africa...
Money transfers or remittances sent to Africa by African migrant workers in America, Europe or Asia have grown tremendously in the past few years and now play an important role in many African countries’ economies. African workers send home more than US$40 billion each year (IFAD Report). The sum exceeds the amount of economic aid given by rich countries to Africa.
For instance, in 2005, the remittances recived were for Nigeria US$ 3,329 million (4% of 2005 GDP) and Kenya US$ 524 million (3% of 2005 GDP). In 2006, Ghana recieved US$1.27 billion which was more than the foreign aid received and more than the country’s export earnings for the same period. In 2007, Liberia recieved USD 303,3 million, higher than its annual public budget of the same year. In 2009, Rwanda recieved USD 165 million higher that the annually development aid. These figures only reflect the official or traceable remittances; and exclude the money sent through informal networks.
It is important for African migrant workers to realize how their individual small amounts of remittances add up to reach a significant amount that is contributing greatly to the economic growth of their countries of origin.
In many countries, the total remittances have exceeded the total package of development aid or inflow of Foreign Direct Investment(FDI). Unfortunately, little effort has been made to find out how best these considerable growing amounts of transferred money could be invested effectively to reduce vulnerability and dependence of benefiting family and to eradicate poverty in African countries.
In most cases, the money transferred to family members is used to resolve urgent problems or to fulfill immediate needs related to health, education and social matters. Little or no remittances are transferred to be invested in businesses that create permanent jobs and generate income; and ultimately allow beneficiaries (parents, brothers, sisters, uncles, aunts, friends, etc) to address their needs while catering their needs in the future and therefore financial self reliance. There are risks that the money being sent is creating a permanent dependency (in fact sustaining poverty) and does not help the recipients and the countries of origin to become self-reliant.
It is high time for Africans who send money back to think, act differently and start a process of investing remittances into businesses that create jobs and generate wealth. This is a new investment approach I have called: Back Home Investment (BHI).
This approach will enable African migrant workers to seize immense investment opportunities and possibilities of exploiting a lot of untapped resources offered by their countries of origin. The new approach suggests a simple strategy of starting with small investment to implement income generating activities in the areas where people needs are critical, such as agriculture, food processing, housing, transport, communication and energy.
By turning a bigger portion of remittances into investment, the Back Home Investment (BHI) will have more benefits than Foreign Direct Investment (FDI). The profits will be reinvested instead of being repatriated as it is the case for FDI.
By embracing this new approach, the African migrant workers will make their family back home financially independent and at the same time will contribute effectively to the eradication of poverty in African countries.
has been created to guide African migrant workers to the best investment opportunities now available in their countries origin, so that the money sent back can be used to start profitable businesses that will create income generation and employment opportunities.
African migrant workers, it is time to invest in Africa with the money you send and start making profits and wealth...