Do migrant remittances contribute to the country’s GDP and what are the potential areas for investment?

Business Growth-01

Pan-African firm Pangea Trust aims to hold a validation Workshop on November 11th for the Kenya Diaspora Mapping Report conducted by Samawati Capital Partners and Blue Inventure Limited.

The workshop will be held virtually on zoom where different stakeholders, the diaspora and the general public can delve deeper into analysing the diaspora remittances and how to channel the remittances towards more investment opportunities.

The findings of the report indicate that most of the remittances and investment decisions seem to be largely informed by the level of cultural and relational connection back home; with the most common reason for remittance of funds being to provide financial support to family and friends.

However, more diaspora wants to explore different investment opportunities but the biggest hurdle they face is accessing appropriately packaged and credible information on available investment opportunities.

“According to our Diaspora Mapping study, 59percent of diaspora remitters surveyed would be interested in exploring digital investment opportunities. Also, trust is very paramount to guarantee repeated investment and referrals.”- Anne Lawi, Managing Director, Pangea Trust.

The growth of digital platforms in Africa has increased the number of remittances sent home.

There is thus a market opportunity for investment platforms that are tech-based since the diaspora have a high affinity for technology services.

This may enhance the adoption of the proposed Pangea Connect platform, an online investment platform.

Islamic finance is also an untapped source of remittance which could be channelled into investment for startups. Most Muslims prefer not to use banks that charge interest, which is against their faith. They, therefore, use hawala that offers a faster and safer way of making transactions.

CBRWG (2012) gives one of the key drivers for the growth of the use of hawala as being the fact that they operated in rural areas where banks and other remittance service providers did not have the reach, hence creating ease of access by recipients.

The Kenya Diaspora Mapping Report Validation Workshop offers an opportunity for the Kenyan Diaspora and other stakeholders to gather more insight on various investment opportunities and how we can best use those investments to spur growth in the startup ecosystem.

To be part of the workshop, register here

For More Information Contact:
Julie Owino
Communication Lead Pangea Trust
Mobile No. +254718404858

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