Harnessing Diaspora potential
The impact of Diaspora remittances the world over is now well documented. Africa received $63 billion in 2015 and of that, Nigeria arguably the largest economy on the continent, received $21 billion.
FOR us in the golfing fraternity, it is imperative to know that “it is not enough to drive the long ball, you have to be able to putt”. How so true for the Government of Zimbabwe in general and the Ministry of Macro-Economic Planning and Investment Promotion in particular.
The Diaspora Investment Policy was launched in the last quarter of last year after a long and arduous consultative process. The idea that was muted way back in November 2006, more than a decade ago, on the need to come up with a framework on migration policy, only came to be realised in October 2016.
The challenge now is to “putt”, or implement the strategies, objectives and goals of the policy because as it has been said, great plans are nothing without execution.
Fortunately, the policy is all inclusive with Cabinet directing it, Dr Obert Mpofu captaining the process together with line ministries and a unit within his ministry directly liaising with Diaspora associations. Everyone has a role to play to ensure a positive outcome.
The impact of Diaspora remittances the world over is now well documented. Africa received $63 billion in 2015 and of that, Nigeria arguably the largest economy on the continent, received $21 billion.
Success stories on Diaspora impact on GDP have been recorded in India, Lesotho and Liberia to name but a few. Zimbabwe’s performance at $935 million in 2015, being 6,7 percent of GDP, can be improved with everyone adopting the right mindset. It is time for everyone to stop threatening action and be a doer as blame will never take place of execution.
We need a new paradigm as Zimbabweans at this critical moment. Most of us are in consumption at the expense of important functional departments such as production, processing, manufacturing, marketing and distribution — especially in agro-processing business.
Whilst social and physiological responsibilities remain high due to poverty levels in the country, it is time we encouraged our Diaspora to effectively consider investing in productive sectors through effective communication, awareness and incentives. Your small seed of encouragement could become a forest of success in the future.
Authorities who have written on the subject have coined “the Diaspora asset” as a niche market that needs a unique marketing strategy with tailor-made friendly products. It is time to market a complete Diaspora-friendly package which some in the financial services sector have termed “from cradle to cremation” in their lingo.
The same authorities have also spoken about low hanging fruit which the Government can take advantage of for quick gains. I share with you some of the low hanging fruits:
1. Financial Services Sector There are a number of Diaspora friendly products that can be marketed through Diaspora associations. These are products that are already on the market through some financial services providers. They include Group Life, Group Funeral and Preservation Funds.
These can be marketed at concessionary terms because of magnitude discounts. Individual life cover can be tied to mortgage protection when one also requires real estate products. And all this can be facilitated through Zimpost using the Universal Postal Union center platform which is most friendly on transaction costs.
2. Tourism There is need to promote Diaspora tourism just inasmuch as there was an effort on domestic tourism. A deliberate effort has to be taken by Government to make members of the Diaspora serve as tourism ambassadors. Players in the sector have to come up with Diaspora-friendly packages and Government could support by facilitating documentation and providing safety and security. 3. Micro, Small and Medium
Size Enterprises Our own people are flying the Zimbabwean flag high in the host countries and are eager to partner with their counterparts in similar trades back home. There are a lot of excellence awards given to Zimbabweans in USA, Europe and South Africa and this indicates that there are organised groups that should be encouraged to expand their business back home.
With The Diaspora Investment Policy now in place, it is time for Government to get actively involved and co-ordinate the associations. With the new economy dominated by MSMEs, the thrust should be to encourage this sector and capacitate it through partnerships. Read the full article on www. herald.co.zw