Why diaspora diplomacy

IMF’s economic forecast for 2023 paints a bleak picture for the global economy. The major global economic centres of China, the European Union (EU) and the United States will all experience slow growth. The US economy is projected to grow at about one per cent and the EU’s half that. 

China will experience one of its poorest growth rates in more than 40 years—from eight per cent in 2020 to about four per cent in 2023.

That raises the importance of diaspora diplomacy—owing to the volume of remittances sent to Kenya from abroad. Central Bank data show diaspora remittances reached almost $4 billion last year—a 10-fold increase from the past 15 years.

With the economic slowdown in the US, EU and China, Kenya should look to its half a million diasporans to diversify revenue streams. Specifically, exploring avenues for higher diaspora remittances beyond personal consumption into value chains in goods and services that will increase economic growth. Focus on diaspora diplomacy also highlights the state policy of diaspora diplomacy being one of the five cornerstones of Kenya’s foreign policy.

The historical challenge with diaspora investment in Kenya has been lack of information and financial infrastructure to enable diasporans invest in value chains that will enhance locally produced goods and services. These elements are also tied to distrust in formal systems to safeguard investments, besides a lethargic legal structure to enforce contracts.

For Kenya to overcome the tough economic waves that will rise in 2023, the government should put more emphasis on diaspora diplomacy. That is, not only to increase remittances to Kenya but strategically target those remittances into economic value chains that will increase economic growth.

Prof Monda teaches political science, international relations and American government at the City University of New York, in New York, United States. [email protected]. @dmonda1