In a landmark move, the African Development Bank (AfDB), the African Union Commission (AUC), and the International Organization for Migration (IOM) have signed a protocol agreement for a $5.2 million grant. This financing aims to bolster investment, human capital, and philanthropic engagement from the African diaspora in eight target countries. The agreement, signed in Addis Ababa, Ethiopia, heralds the beginning of the “Streamlining Diaspora Engagement to Catalyse Private Investments and Entrepreneurship for Enhanced Resilience” (SDE4R) project.
The target countries—The Gambia, Liberia, Madagascar, Mali, Somalia, South Sudan, Togo, and Zimbabwe—are poised to benefit from this strategic initiative. The SDE4R project seeks to effectively mobilise the human and financial capital of the diaspora to support socio-economic development, revive the domestic private sector, and aid recovery from political or humanitarian crises.
Dr. Abdul Kamara, AfDB’s Deputy Director General for East Africa, emphasised the transformative potential of this project. “The SDE4R project grant agreement is a pivotal step towards leveraging diaspora engagement to catalyse private investments and entrepreneurship. This initiative will spur business opportunities and provide technical support for socio-economic resilience across the continent, particularly benefiting women, youth, and rural communities.”
Betty Mupenda Wangozi, Acting Director of the AUC’s Citizens and Diaspora Organisation Directorate, highlighted the timeliness and significance of the agreement. “The SDE4R project will significantly advance the AU Agenda 2063 in the beneficiary countries. Our efforts to harness the diaspora’s contribution to Africa’s development are crucial for the continent’s growth and stability.”
Mariama Cisse Mohamed, Director of the IOM Special Liaison Office in Addis Ababa, reiterated the alignment of the project with IOM’s mandate. “This agreement constitutes a stepping stone for more comprehensive interventions across Africa, building on existing initiatives for diaspora engagement in private sector development.”
The project, funded by AfDB’s Transition Support Facility (TSF) and approved on 4 July 2023, aims to directly benefit 10,000 individuals and indirectly support 40,000 community members affected by conflict, climate change, and other crises. The IOM will implement the project over three years, with strategic oversight from the AUC.
Africa’s diaspora, estimated at 160 million people, plays a crucial role in the continent’s development. In 2021 alone, the diaspora remitted nearly $96 billion to Africa, far exceeding the $35 billion in official development assistance received by the continent. This new agreement exemplifies the Humanitarian-Development-Peace (HDP) Nexus partnership, focusing on strategic frameworks and shared priorities to enhance resilience and development.
This collaborative effort between the AfDB, AUC, and IOM marks a significant step towards sustainable development in Africa. By mobilising the diaspora’s resources and expertise, the SDE4R project aims to foster a resilient and prosperous future for the continent, particularly for its most vulnerable populations.
