For decades, African diaspora communities have been celebrated for the billions of dollars they send home every year to support families, pay school fees, build houses and provide a crucial safety net during economic hardship. Yet development experts increasingly argue that remittances tell only part of the story.
The greater opportunity lies in transforming diaspora communities from senders of money into strategic investors capable of financing businesses, infrastructure, innovation and economic transformation across the continent.
That conversation was thrust into the spotlight during the inaugural Unlocking Diaspora Finances: A New Frontier for Development Finance roundtable hosted by the Commonwealth Secretariat and ARK Group International at Marlborough House in London. Bringing together policymakers, investors, academics and development partners, the discussions highlighted a growing consensus that diaspora investment could become one of the most powerful tools available to developing countries seeking sustainable and home-grown sources of finance.
The timing is significant. Many African countries continue to grapple with mounting debt, shrinking development assistance, climate-related pressures and increasingly competitive global capital markets. At the same time, governments are under pressure to create jobs for rapidly growing populations while financing infrastructure, healthcare, education and climate adaptation programmes.
Against this backdrop, diaspora communities represent an enormous but largely underutilised asset.
High Commissioner of The Gambia to the United Kingdom, Her Excellency Dr Fatou Bensouda, illustrated the scale of the opportunity through her country’s experience.
“The Central Bank of The Gambia announced that remittance inflows for 2025 were US$872.05 million, equivalent to 30 per cent of national GDP. Formal remittances quadrupled from US$205.64 million in 2016, partly due to The Gambia’s open and competitive remittance market.
“In The Gambia, remittances are not simply figures in an economic report – they represent work, sacrifice, trust, love, responsibility and the enduring relationship between those who have left and the country they continue to carry with them,” she said.
The Gambian story is echoed across Africa. From Zimbabwe and Kenya to Nigeria, Senegal and Ethiopia, money sent home by citizens abroad has become a lifeline for millions of families. In many countries, remittances consistently exceed foreign direct investment and development assistance.
Yet experts say the continent has barely scratched the surface of what diaspora communities can contribute.
Many members of the African diaspora occupy influential positions in business, academia, technology, healthcare, finance and public policy across Europe, North America, Asia and the Middle East. Beyond financial resources, they possess expertise, networks and market access that can help African economies become more competitive and globally connected.
The challenge, according to participants at the roundtable, is creating systems that can channel diaspora capital into productive investment.
Joevas Asare, Founder and Managing Director of ARK Group International, said the issue is not the availability of capital but the lack of structures capable of mobilising it effectively.
“Diaspora investment is not new; capital has been flowing for decades. The challenge is not availability, but how that capital is organised and deployed into productive and scalable investment. This requires deliberate investment infrastructure to absorb, structure and channel diaspora capital effectively,” he said.
Across the continent, governments are beginning to recognise this reality. Countries are exploring diaspora bonds, specialised investment funds, digital investment platforms and dedicated government agencies aimed at strengthening engagement with citizens abroad. Others are introducing reforms designed to improve investor confidence, streamline regulations and create investment-ready opportunities.
However, significant obstacles remain. Many diaspora investors continue to cite concerns around policy inconsistency, foreign exchange risks, governance challenges and limited information about viable investment opportunities. For smaller economies, the shortage of bankable projects often makes it difficult to attract large-scale investment despite strong interest from diaspora communities.
The Commonwealth Secretariat’s Economic Advisor, Dr Tamara Mughogho, noted that targeted reforms, capacity building and partnerships can help bridge these gaps, particularly in small and vulnerable states.
Her colleague, Dr Thomas Munthali, who leads the Secretariat’s work on Economic Policy and Small States, believes the conversation must ultimately be linked to broader efforts to strengthen domestic resource mobilisation.
“It’s time to move beyond reliance on international finance and build our own capacity to mobilise resources at home. With an estimated Commonwealth diaspora investment potential of US$73.2 billion annually, and remittances accounting for up to 41 per cent of GDP in some small states, often surpassing aid and foreign direct investment, the opportunity to unlock diaspora capital for sustainable financing is already within reach,” he said.
For Africa, the significance of diaspora investment extends beyond economics. It is also about strengthening the relationship between citizens abroad and the communities they continue to call home. It is about creating opportunities for skilled professionals to contribute knowledge and innovation. It is about ensuring that migration does not represent a loss of talent but an expansion of a country’s economic footprint.
As governments search for new pathways to development, diaspora investment offers a compelling proposition: financing that is rooted in trust, driven by shared identity and aligned with long-term national interests.
The challenge now is converting goodwill into investment, connections into partnerships and remittances into engines of growth. If that can be achieved, Africa’s diaspora may prove to be one of the continent’s most valuable development partners in the decades ahead.
THE COMMONWEALTH
