A new policy paper by the Friedrich Naumann Foundation for Freedom argues that the continent’s vast diaspora savings, reflected in more than $100 billion in remittances sent to Africa in 2024, represent an underused resource that could support infrastructure, entrepreneurship and economic resilience.

Speaking to Channel Africa, Alexandra Heldt, the Foundation’s West Africa Director, said shifting geopolitical and financial landscapes have left many African countries seeking new ways to strengthen economic independence and global competitiveness. Diaspora bonds, she said, offer both financial benefits and a unique emotional connection.

“They are not only a financial tool, but also an emotional tool,” Heldt explained. “They create enthusiasm by drawing on patriotism and the deep ties between nationals abroad and their countries of origin.” She pointed to Senegal’s recent bond campaign, which explicitly appealed to national pride to attract diaspora investors.

However, Heldt emphasised that successful diaspora bond programmes require strong governance, transparency and trust. While remittances traditionally support household needs, diaspora bonds issued by governments aim to channel funds into national‑level projects such as transport links, energy infrastructure and public‑private ventures.

“The investor, the state and the project must be in a close relationship grounded in transparency,” she said. “Even the most patriotic investor will hesitate if there is no environment of trust.”

Several countries, including Israel, India, Ethiopia and Nigeria, have successfully issued diaspora bonds, with Ethiopia’s Grand Renaissance Dam cited as a notable example of mobilising diaspora patriotism for national development.

Heldt said that African governments interested in the model must first demonstrate accountability and clear project pipelines to convince diaspora communities that their investments will be traceable, impactful and well‑managed.

–ChannelAfrica–