Ever relaxing investment climate Attracting Ethiopians living overseas

People living overseas, of developing countries, can be a potent force for the development of their respective countries of origins. Apart from remitting hard currencies, they could promote trade and investment, research, innovation, and knowledge and technology transfer.

There are many aspects of engagement the community could tap, depending on its interests and/or interests that may arise from the situation of the countries of origins.

The wealth of experiences of the community has paramount importance for the growth of developing countries. To mention, but a few, the sharing of practices and cultural exchanges; filling skills-gap in home country; involving in the collection and channeling of financial and other material resources from the diaspora to the country of origins in response to identified needs; creating professional linkages between professionals living overseas and their local counterparts; and by creating institutional linkages those enable long-term partnerships between host and home country institutions, using networks built by diaspora members in their countries of residence.

They also play an important role for their country by forming business and trade linkages by facilitating trade and investment in the home country; introducing local products to new markets; establishing joint ventures with foreign concerns; as well as connect host and home country businesses one another.

Investments may be effected using a number of channels, including remittances; the purchase of commercial or residential property in the country of origin; depositing savings in home country financial institutions; and support of local development projects.

Emigration from Ethiopia could be said a recent phenomenon. The revolution in Ethiopia in 1970s is highly attributable to the beginning of mass migration to avoid persecution and killings, among others.

Now one can argue that Ethiopians living abroad are no less development forces. However, their participation is limited due to various reasons. Despite efforts to engage them in every sector, the efforts lack sustainability, as many documents show.

Following the coming of Prime Minister Dr. Abiy Ahmed to the office, the government has duly acknowledged the limitations and has been taking practical measures to boost the community’s engagements in the affairs of its country.

In recent years, there has been an increasing recognition of Ethiopians living overseas and its potential role in development of the country. Certainly, Ethiopia has witnessed a growing political will to formally include the diaspora in its development efforts.

One indication for this is the Ethiopian Diaspora Trust Fund (EDTF), is an initiative of Prime Minister Dr. Abiy Ahmed and it is a non-profit organization and the call to donate a dollar-a-day by all Ethiopian Diaspora.

As shown by Prime Minister Dr. Abiy Ahmed, the Fund was established with the goal of achieving a resilient solution for Ethiopia’s poor and disadvantaged groups and communities and contributes towards the legitimate aspirations of all Ethiopians, irrespective of ethnicity, religion, language, region, gender, political views or any other factors.

And also, the Fund aims to finance projects that meet critical and selected needs based on their potential to make the highest positive impact on groups and communities in Ethiopia in such areas as health, education, water, sanitation facilities and rehabilitation of persons with disability, agricultural development, technology, women empowerment, youth, financial inclusion, small scale entrepreneurship and other income and employment generating projects.

Beginning from the launching date, total of $4.891 million is deposited in Commercial Bank of Ethiopia in Addis and CITI Bank in US by Ethiopian Diasporas those live in around the world by using website.

According to a May 2019 report of Ethiopian Diaspora Agency, there are 856 diaspora projects in Ethiopia, 468 of them fully operational. These projects created permanent job opportunity for 33,446 citizens and temporary job opportunity for 185,703 citizens.

Director General of Ethiopian Diaspora Agency, Selamawit Dawit, told The Ethiopian Herald that more than 1,281 members of the Ethiopian diaspora community took licenses over the last fiscal year to invest in Ethiopia. These projects also are expected to create additional jobs to citizens, she said.

Over the same period, members of the community purchased Great Ethiopian Renaissance Dam bond worth 550,000 USD, she said, adding that they also transferred 29,667 billion Birr through 1,216 hard currency accounts from different banks.

The engagement of Ethiopian diasporas is not only limited to development affairs but they also have been engaging in voluntary activities.

A non-profit organization based in the US and named Global Alliance for Right of Ethiopians (GARE) donated 31.4 million Ethiopian Birr for internally displaced peoples of Gedeo.

“Many volunteer activities had been done by individual members as well.”

They provided financial and material supports for charity organizations. And also, Professionals in different areas participated in training Ethiopians at many universities.

The Ethiopian Herald September 27, 2019

 BY ABDUREZAK MOHAMMED

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