In connection with Ethiopian holiday celebrations, the Ethiopian Diaspora community transfers huge amount of remittance to their relatives residing at home. As a result, the country gets a relief from the tight situation it is in when it comes to foreign currency in connection to these occasions.
Economics and law experts say that as the country needs huge amount of foreign currency to stabilize its economy, which makes setting up a platform to strengthen the engagement with the Diaspora crucial.
Wosenseged Assefa, an economist, says that the country has to expand its sources of foreign exchange earnings, and the Diaspora community can be considered as one of such source. Citing India’s experience, where member of their Diaspora community is forced to visit their home country at least once in every seven years, he argues that Ethiopia can follow such experiences in order to boost the foreign currency it gets from its Diaspora community.
As to him, Ethiopia has invested more capital to educate its citizens before they go abroad, and thus, should gain the return by influencing or disposition. For instance unless they [Diaspora] establish a company that operates in Ethiopia, the country need to inform them that it will have legal consequence related to VISA or dual citizenship.
Most of the Diaspora exploited the country’s capacity before they went abroad. Citing Eritrea as an example, he said, Eritrea has enforced the Diaspora to pay some amount of tax to the State when they sent remittance to relatives.
Of course Ethiopia does not have to follow such methods, but the country can encourage the Diaspora to organize in groups and invest in the country of their roots by appealing through their citizenship. For this, the government has to strike a mutual agreement with them, he opines.
As for Sultan Kasim, lecturer at Haramaya University Law School, the Diaspora community has a huge untapped potential, and cognizant to this, the government is moving well to tap into it. The government has established an institution that follows the issue of Diaspora exclusively, and a Diaspora trust fund, a nonprofit organization that works in coordination with the government to directly involve Diaspora Ethiopians in their home country’s socioeconomic activities.
While the effort is commendable, compared to other countries, the contribution of Ethiopian diaspora community is, relatively speaking, underwhelming.
He states that there needs to be a study carried out in order to pinpoint the exact reasons for it, but for now it is important to focus on the challenges that the Diaspora has been, and is facing. Though they want to come here and invest, Kasim continues, the bottlenecks in government offices discourage them from contributing something worthy for their home country.”
According to him, forcing the Diaspora to come and invest in their country of origin is not correct and acceptable. “Indeed, some countries lay tax on the Diaspora remittance and collect money in the form of taxation, but I feel the gains that comes from [their] willingness is greater than anything that is gotten by forcing them. This is because it may expand the black market and make the country lose huge amount of revenue.”
Providing adequate information to the Diaspora community is critical, and can help make them alert and informed about their home country, and the things that are happening here. Such doings can be instrumental for their increased participation, and to face head-on the challenges and hurdles that might come their way when they decide to get involved.
Abreham Seyoum is the chairman of the Ethiopian Diaspora Association. He says the Diaspora feels a sense of belongingness, and has a desire to contribute their own share in the country’s development, but the avenue for them to get actively involved is slimmer compared to other countries. Horn countries such as Djibouti and Eritrea, for instance, allow dual citizenship for their Diaspora, but, Ethiopian Diaspora cannot get dual citizenship, and are forced to pay huge amount of money to renew their identity cards.
“I think the reason for this is to prohibit the Diaspora from interfering in the country’s political affairs, which defeats the purpose, if the Diaspora, who are believed to possess better knowledge and expertise, are not allowed to participate in political affairs and others issues.”
He argues that encouraging them to participate in the political, economic and social affairs of their home country can help bring changes for the better. To this end, Abreham proposes several ideas. One is, he believes, that the government should facilitate conditions for the Diaspora to come and invest in Ethiopia by devising a compensation mechanism. “If a Diaspora invests his/her knowledge and expertise for two years, the government should put mechanisms to provide him/her attractive incentives.”
All in all, although the Ethiopian Diaspora is willing to share its knowledge and expertise, the scenario has not been inviting. This can be taken as a pushing factor that discourages the Diaspora community.
However, even with these scenarios, it is the Diaspora investment which created jobs for many unemployed citizens, only second to the State. This has happened in the absence of encouraging factors. Imagine the potential benefit that can befall the country if the conditions for them are made conducive.
The Ethiopian Herald January 9/2020
BY GIRMACHEW GASHAW
