Emem Ekong, Angela Kiire, Ndidi Njoku, Irene Omaswa AFFORD SL

Supported by the Global Forum for Migration & DevelopmentJuly 2009

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Assessing the impact of an Engaged Diaspora: Experiences in Sierra Leone

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Executive Summary We present our experiences with AFFORD SL, whose focus is job creation thru

enterprise development, leveraging the skills and passion of the diaspora

We present 3 forms of diaspora engagement in Sierra Leone1. Reverse brain drain through participation in SEEDA, a skills transfer volunteer

programme2. ADIIA, a diaspora investment vehicle, which although unsuccessful, provides

lessons for future ventures3. AFFORD SLs resource persons winning competitive tenders at an international

level in the development space

We conclude & recommend that: The AFFORD model is innovative and provides a breadth of options for Africans

in the diaspora to engage with Africa to pursue the development agenda . The model is successful and scaleable and can be replicated elsewhere

Diaspora organisations need to be managed on a professional basis rather than as goodwill ventures. The right talent is necessary to support this

Home governments need to actively manage their diaspora resource pool in an effective and non divisive manner

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SEEDA leverages skilled diaspora relationships to support SMEs / mSMEs in Africa

Case A SL origin, Dual nationality Emigrated to UK in early 90s Professional Auditor / Accountant Participated in first SEEDA mission Returned to SL post SEEDA in 2008 to

prominent role in public sector Maintained ties in UK

SEEDASupporting

Entrepreneurship& Enterprise

Development in Africa

African SMEs• Receive professional

business support• Launched 2006,

Ghana, SL• Over 800 businesses

supported

Resource Persons

• Diaspora volunteers participate in 2 week missions

• 70 volunteers have contributed $200k of time / money

Case B SL origin, Dual nationality Emigrated to UK in late 80s Professional Auditor / Accountant Founder member of Afford in mid ’90s Returned to SL post SEEDA in 2009 to

prominent role in public sector Maintained ties in UK

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Participation in SEEDA has brought about reverse brain drain. The model can be scaled

Conclusions

SEEDA model works. SEEDA accelerated return to SL

Facilitated networking opportunities & provided credibility

Risk hedged by dual nationality, maintaining ties in UK

Recommendations

Provide practical non divisive support to returnees/ soft landing to returnees e.g. Mentorship

Leverage SEEDA’s pilot experience & explore scaling the SEEDA model perhaps on a franchise basis to other diaspora community organisations

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ADIIA (African Diaspora Investors in Africa) Investment vehicle formed by SEEDA Resource

Persons (RPs)

Origination

Aims/ objectives Demand for Diaspora investment

SEEDAAfrican SMEs

Resource Persons

(RPs)

Investment

ADIIA (African Diaspora Investors in Africa)

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The ADIIA pilot aimed to invest in an internet cafe in Sierra Leone

The Investment Mechanism

A pilot was designed to test the structure & concept

Existing SEEDA clients were considered as targets

An initial investment of £6000 (c£500 per ADIIA member) was to be combined

Investors’ expertise in local knowledge, networks & business acumen was to be leveraged

The Opportunity

Market survey conducted to investigate business opportunities

Internet cafe in Bo , SL identified as growth opportunity

Promising SEEDA client identified . He had the right personal qualities (tenacity & drive) and wanted to expand into the internet cafe space

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The market for diaspora investment is strong, but there are several lessons to be learned

from the ADIIA experience

Outcome- No investment initiated

Challenges:

Organisational structure

Investment

Implications and lessons learnt

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Recommendations from the ADIIA experience can inform policy and practice in this space

Diaspora Organisations

Policy/Development Institutions

Information and advice Facilitate/ fund practical

Diaspora investment workshops

Facilitate an enabling investment environment in home and host countries

ADIIA 2009 – new dawn

Link Diaspora investment groups with investment professionals/ potential funders

Facilitate Diaspora investment workshops

Promote Diaspora finance –source of SME finance

Organisational structures

Collaborations On the ground

contact

Other DiasporaInvestment Groups

Recommendations:

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AFFORD SL’s resource pool can win competitive tenders at an international level

SEEDAAfrican SMEs

Resource Persons

AFFORD Network

Thriving network with active mailing list

Rich pool of professional expertise, with an interest in engaging in Africa in a positive way

Winning Contracts Resource persons access

opportunities through AFFORD network

Resource pool expertise tapped into to prepare bids

Won 2 contracts Sierra Leone Business Plan

Competition (Business Bomba) (ongoing)

Oxfam / COOPI Livelihoods Project (2009)

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The model works, but there are challenges that need to be addressed

Successes

Diaspora resources are strong enough to win competitive tenders

Diaspora resources have the advantage of local knowledge and cultural connection which may allow them to be more impactful

Challenges

Nascent organisation with lack of clear processes and underlying support structures

Leadership is critical to the success of these projects. A special type of leadership is required to blend diasporaand local resources

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We recommend that the model be replicated, but on a more professional basis

The model works and should be replicated

Organisational support is required for member based organisations to enable

development of processes and procedures

Leadership is a challenge and professional management is key

The right talent is needed for these organisations to be successful. We

recommend that opportunities in these organisations be made attractive to

talent from the private sector to assure this

Better expertise in country, and more enabling environment to ensure that

teams hit the ground running in a way that builds local capacity

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Conclusions & Recommendations - overall AFFORD presents an innovative model for engaging skilled diaspora

professionals that presents choice including : Opportunity for a stepping stone to return to home nations Opportunity to use professional skills in a fulfilling way to help the development

agenda Opportunity for networking to pursue e.g. Investment opportunities which tap into

significant capital base and can compete with other consumer investment vehicles

Diaspora organisations need to be managed on a professional basis rather than as pure goodwill ventures. NGOs/ governments support is required to attract the right talent from the private sector

Home country governments need to actively manage their diaspora pool by: Supporting returnees with practical help Enabling dual nationality Supporting the activities of diaspora organisations

The Global Programme for Migration & Development’s Athens Conference in November 2009 will provide further opportunity for exploring models like these