Diaspora crucial in growing exports
Discussions on how Zimbabwe’s Diaspora can contribute to economic development have often focused on remittances, with little attention on how they can increase inflows of foreign currency through facilitating export growth.
WHAT this means is that the country is not fully harnessing the regular social contact between the Diaspora and families back home to increase the presence of local products on the export market.
Zimbabwe’s Diaspora is large and continues to grow, with more than three million nationals living outside the country, according to the International Organisation for Migration (IOM).
The size of the Diaspora and the number of immigrant entrepreneurs undoubtedly have a positive, significant and economically meaningful impact on exports.
Imagine if at least half of the Diaspora population — 1,5 million Zimbabweans — is able to facilitate exports of as little as US$500 each per year.
This will translate to US$750 million in one year alone, a figure that can progressively grow as more people participate in creating markets for local products.
Coupled with other initiatives, there is room for local businesses to use the diaspora in strategic markets to grow their exports.
An inclusive arrangement that leverages on the Diaspora to increase exports will also ably promote local brands.
There are several ways through which the Diaspora can stimulate economic development in their countries of origin, which include facilitation of inward foreign direct investment and trade relationships.
Members of the Diaspora can become marketing agencies for domestic companies, and this is a powerful conduit through which they can continuously help develop local businesses.
Facilitating transfer of technology, skills and knowledge, including temporary assignments of skilled expatriates in their countries of origin, and the return of emigrants with enhanced skills and new knowledge can also contribute to economic development in the country of origin.
So, how can Zimbabwe’s Diaspora contribute to growing exports?
Zimbabweans living in other countries can take on various roles in developing export markets for their homeland, which include leader/reputation builder, middleman, or enforcer of national brands.
It is easy for the Diaspora to assume these roles given existing social ties with businesses and families back home, where they can become brand ambassadors of the country and local products.
Zimbabwean nationals in other countries, particularly in Europe and America, can help challenge the global narrative that is usually unfavourable for the country’s image.
The Diaspora can also help sale Zimbabwe as a source of quality products.
Already, Zimbabwe’s Diaspora is playing some role in increasing awareness of local products on international markets, albeit at a small scale.
For example, people travelling overseas are often asked by relatives and friends to carry along national brands such as Mazoe and Tanganda Tea.
What is now required is to upscale the activity and to formalise some of the operations so that they contribute meaningfully to growing national exports.
Local companies must court the Diaspora as potential business partners who can source buyers in foreign markets, as well as conduct much-needed research to ascertain market requirements and penetration strategies.
Not only will this assure local enterprises of easy access to markets, but it will also provide local businesses with real-time market information that is critical in dealing with competition.
Forging partnerships between local businesses and the diaspora should be easy given existing relations tied to nationhood.
Members of the Diaspora have distinct features that make them comparatively better than other foreign business partners.
They are better informed given their in-depth and intimate knowledge of the home economy and products that they are expected to present to potential markets.
Going forward, what is required is a nationally coordinated approach that will see improved dialogue on Diaspora linkages, particularly as brand ambassadors and market extensions.
The Diaspora can sustainably help families back home by enabling them to tap export markets.
Local companies can build influential networks with the diaspora to advance national interests.
They can also leverage on formal and informal connections that draw on the expertise and business contacts of the diaspora.
To easily achieve this, the Ministry of Foreign Affairs and International Trade established the Zimbabwe Diaspora Directorate, which is the focal and entry point of contact between the diaspora and Government.
The directorate facilitates Diaspora activities, programmes and projects, including marketing and promotion of investment, trade and tourism.
By co-ordinating Diaspora activities and communicating opportunities, the directorate will contribute to export growth by reducing the information gap and creating a single force that will front Zimbabwe’s export vision.