By STEPHEN KAPAMBWE – FOR a long time, investing in Africa has been left to foreign powers rather than Africans themselves. African governments have often drawn up national development strategies and policies which emphasise attracting foreign investment which, though critical, has seen African nationals in the Diaspora sidelined. For a number of years, Zambians living outside the country have appealed to successive governments to establish a national agenda aimed at making it favourable for those in the Diaspora to invest in the country through, among other things, acquisition of land. This is one of the underlying factors that led to the recent inclusion, in the amended Constitution, of the dual citizenship clause which became law after President Edgar Lungu assented to the Constitution on January 5, this year. Therefore, it is commendable that Vice President Inonge Wina recently called on Africans living overseas to invest in their respective home countries and be part of the transformation of the continent. Vice-President Wina said this when she graced the Third Annual Africa Summit at the invitation of the London School of Economics (LSE) in the United Kingdom (UK). The summit was held under the theme, ‘Africa within a global context: thinking beyond investment’. “I must use this forum to call upon our brothers and sisters in the Diaspora to invest back in their respective home countries and be part of the transformation. “Evidence has shown that in some countries, remittances from the Diaspora far exceed aid received, and that shows you the strength that lies within us as a people. It is home-grown investments by Africans across the African borders such as Dangote Group that will bring sustainable socio-economic development,” Ms Wina said. Ms Wina rightly cited the Dangote Group which provided an invaluable investment in the cement industry in Zambia at a time when construction had become a preserve of the affluent few on account of soaring prices of cement. The Dangote Group entered the Zambian market and decided to do something which other manufacturers of cement were not doing. The group built a brand new factory operated by solar energy which made it possible for Dangote to produce and supply cement at a relatively cheaper price. Because of that, Dangote influenced a downward adjustment of the prices of cement when economic fundamentals, like the value of the local currency in comparison to international convertible currencies; the rate of inflation; prevailing energy deficit; and international oil prices had not aligned to favour a fall in product prices. But the cement prices fell and have remained relatively low owing to the introduction of the Dangote products. This is the message which Ms Wina was sending to Zambians in the Diaspora, that the soil for investment in Zambia is fertile. This is especially critical because the country can benefit from the skills and know-how that Zambians living in the Diaspora have acquired over the years. Investment opportunities abound; in energy where the country is grappling with a crippling power deficit that requires considerable investments in renewable sources of energy, like solar power; in agriculture where the Government is trying to ramp up crop production through expansion of irrigation systems as well as increase investments in aquaculture; in tourism; and other sectors. All these sectors need money which, unfortunately, the Government does not have. The importance, therefore, to encourage Africans in the Diaspora to invest in the continent cannot be over emphasized. In 2013, BBC correspondent Mark Doyle, produced a story on how Africans were generating more resources through remittances that what the continent received in donor aid. In a the story entitled ‘Africans are helping themselves more than aid workers are, according to new research’, Doyle featured an analysis of cash flows by Ghanaian academic Adams Bodomo who was based in Hong Kong at the time, which showed that Africans living outside the continent send more money home to their families than is sent by traditional Western aid donors in what is called Official Development Assistance (ODA). Mr Bodomo gave an example of the year 2010 when Africans outside the continent remitted US$51.8bn (£34bn) to the continent. In the same year, according to World Bank figures, ODA to Africa was US$43bn (£28bn). “I started the research to see if I could support a hunch I had that money remitted by African families was more efficient aid than ODA money,” the Ghanaian professor told the BBC. “I found it was clearly more efficient and better targeted but to my surprise I found it was also a much bigger sum.” Mr Bodomo concentrated on African money-flows but came to a similar conclusion for all developing countries. “Worldwide, remittances from people who hail from developing countries totaled US$350bn,” he said; “far exceeding ODA at US$130bn.” “In the case of Africa, about 75 per cent of remittances are sent informally – we can’t track that,” Mr Bodomo said. “For example, cash is sent through a friend who is visiting on holiday. If we add all that in, the Diaspora remittances would be bigger by a factor of three or four times.” Mr Bodomo believes “family aid” is also more efficient, and that Diaspora practices hold lessons for the wider aid industry. “It’s more effective because it’s better informed. An African family member abroad knows what is needed, whether it’s for school fees, to build a structure or to grow a business. “Compare that to traditional foreign aid and all the cumbersome structures it is distributed through – only a small amount of ‘traditional aid’ ends up with the people who need it. “It’s also clear that a lot of government-to-government aid is misappropriated. So the ODA donors should learn from these Diaspora guys by targeting support to those who need it most – families and small businesses.” These figures show that Africa has the capacity to achieve a difference is it works with its nationals in the Diaspora. Ms Wina urged Africans to start looking inwardly for home-grown investment solutions to support diversification of the continent’s economies away from one or two commodities which are often exported as raw materials. She said this is in view of volatile commodity prices on the international market. Ms Wina said African governments were committed to providing an enabling environment and mutual benefit for the investors and local people who make investments. However, some people may feel that Ms Wina’s call should also translate into a change of policy on the part of African countries to make deliberate efforts aimed at tapping investments from their nationals outside the continent just as much as the deliberate efforts that go in attracting foreign investments. Governments should put in place incentives and concessions to make it attractive for those in the Diaspora to invest in their home countries. Zambia is one of the countries trying to inspire its nationals overseas to invest in the country. Following countless requests made to successive administrations, the Zambian Government announced plans to make it simpler for its nationals in the Diaspora to acquire land in the country. This is an issue which even President Lungu has openly discussed and shown willingness to resolve whenever he has had the opportunity to interact with Zambians living outside the country. According to Lands, Natural Resources and Environment Protection Deputy Minister Davies Mwango, the Government had simplified the land acquisition process for Zambians living in the Diaspora. Mr Mwango said the simplified process would enable Zambians living abroad to easily access land at home. He said a land task force had been established to deal with challenges currently being faced in land administration in the country. Mr Mwango encouraged Zambians in the Diaspora to apply for land in order to invest in the country. Whereas Africans in the Diaspora have shown a willingness to change the status quo of their countries through remittances, African Governments should start looking at their nationals outside the continent as an important economic and development factor. Governments should actively establish platforms on which to engage and encourage those in the Diaspora to invest in particular sectors of local economies. Tangible incentives should be provided to companies set up by Africans in the Diaspora in much the same way as foreign investors are availed with lengthy tax holidays and other incentives to invest in Africa. Additionally, Africans in the Diaspora should also be regarded as an important factor in the continent’s quest to upgrade the skills of its human resource through skills transfer.