Overview
According to Africa Recruit surveys conducted between 2003 and 2005, African countries are becoming more heavily reliant on the stable foreign direct investment and the increasing remittances from its indigenous population abroad as a Source of finance. In 2002 remittances to Africa accounted for 15% ($12bn) of the total remittances to the developing countries ($80bn). Majority of the remittances were sent from Europe, North America and Asia reflecting the migration pattern of African’s e.g. North African’s migrating to Asia countries such as Saudi Arabia, United Arab Emirates and Sub Sahara African’s migrating to Europe and North America. Top African receiving countries are Egypt ($3.4bn), Morocco ($2.2bn), Nigeria (1.7bn), and Tunisia (0.8bn). In 2002 remittances to Nigeria ($2bn) accounted for 5% of the GDP playing a large part of the economy positively helping the balance of payments.
It’s estimated that there is in excess of 64,000 Kenyans living and working in the UK alone. According the Africa recruit survey, the pace of Africa’s brain drain has accelerated with 23,000 academics, over 40,000 Africans with PhD’s and 50,000 middle and senior management personnel leaving the continent each year Wide range of professions from the arts to science e.g. rural development, Healthcare professionals, teachers, economist, criminologist, banker, editor, telecommunication, information technology consultants and social scientist in addition to numerous others.
These migrant population remit quit a sizeable amount of their incomes to their mother countries. There is an argument that African migrants contribute to the income of their countries of origin through remittances. According to the Africa Recruit Survey, remittances are used for
- Adhoc contributions – most common form of remittance. Structured form of family support to meet specific needs back home.
- Aims giving – small regular amounts sent, particularly during festivals.
- Family subsistence – most likely migrants who arrived within the past three years
- Building and infrastructure projects – those settled in the UK may look for business opportunities in their homeland.
- Building a house in a family homestead – as migrants from the 1960’s and 1970’s enter retirement phase, may choose to build a home in their country of birth.
- Small-Medium-Micro business enterprise
The Government estimates that the Kenyan Diaspora remits close to $600 million every year to their families and for Investment purposes (Kelley 2005): Source Economic Commission for Africa Report on International Migration and Development: Implications for Africa September 2006
