Diaspora crucial in growing exports
On how the Zimbabwean diaspora can contribute to economic development are often focused on remittances.
LITTLE attention is given to how the diaspora community can help increase the country’s foreign currency receipts through facilitating growth of exports. This means that the country is not fully harnessing the social contact between the diaspora community and their families back home in order to increase the presence of Zimbabwean products on the export market. Zimbabwe has a massive diaspora. According to the International Organisation for Migration, more than three million nationals are living in foreign lands.
Undoubtedly, the size of our diaspora community can have a positive and significant impact on our exports.
Imagine if at least half of the diaspora population, that is 1,5 million Zimbabweans, is each able to facilitate exports of as little as US$500 per year.
This will translate to US$750 million in one year alone, a figure that can continue to grow as more people participate in creating markets for local products.
Coupled with other initiatives, there is room for Zimbabwean businesses to utilise the diaspora living in strategic markets to grow their exports.
An inclusive arrangement towards export growth, that will ride on the diaspora community, will contribute to the internationalisation of Zimbabwe’s economy and local brands.
There are several ways in which the diaspora can stimulate economic development in their countries of origin, which includes 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 development of local businesses.
Facilitating the transfer of technology, skills and knowledge, temporary assignments of skilled expatriates in countries of origin, and the return of emigrants with enhanced skills and new knowledge can also contribute to the economic development of country of origin, and in turn export capacity.
So, how can Zimbabwe’s diaspora contribute to growth of exports?
Zimbabweans living in other countries can take on various roles in the development of export markets for their homeland which include leader/reputation builder, middleman, or enforcer of national brands.
It is easy for Zimbabwe’s diaspora to assume these roles given the existing social ties with businesses and families back home, where they can become brand champions of the country and local products.
Zimbabwean nationals in other countries, particularly in Europe and America, can help challenge the global narrative about Zimbabwe which is focused on the country’s economic challenges.
As brand ambassadors, Zimbabwe’s diaspora can help sell Zimbabwe as a source of quality products.
Already, the Zimbabwean diaspora is playing a role to help increase awareness about local products on international markets albeit on 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 development of 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 will also provide local businesses with real-time market information, which is critical when dealing with competition.
Forging partnerships between local businesses and the diaspora should be easy given existing relations tied on nationhood.
The diaspora community has two distinct features that places them at an advantage compared to other foreign business partners.
They have an information advantage 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 co-ordinated approach that will see improved dialogue on diaspora linkages, particularly as brand ambassadors and market extensions.
Zimbabwean companies can build networks of influence with the diaspora to advance national interests and make use of formal and informal connections that draw on the expertise and business contacts of the diaspora, including encouraging interaction with colleagues at home; and promoting consumption of local goods and services as well as building national trade brands.
To 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 the 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. ◆ Allan Majuru is the ZimTrade chief
executive.