The East African Community is developing a regional diaspora policy and plan of action to establish a strategic framework for mobilising and integrating the diaspora in the regional integration process and harnessing communication links within the diaspora community. According to the EAC Secretariat, the process which is supported by the International Organization for Migration includes assessing diaspora-related information and proposing the ideal data sharing and protection principle among the key stakeholders. ALSO READ: How region’s Diaspora community can spur the manufacturing sector The Secretariat has conducted a review of existing legislation, policies, institutional structures, and coordination mechanisms on diaspora engagement of all partner states. It is gathering information from relevant ministries, departments, directorates in the partner states responsible for diaspora matters, investment promotion and facilitation. “The EAC is consulting with partner states and other partners about what kind of information is needed from Diaspora members to facilitate their work or analysis on Diaspora contribution, and suggest how the data should be compiled and safely stored, ensuring the human rights and data protection principle,” reads a statement by the Secretariat. “The EAC is seeking to get views on the expectations of the diaspora on the regional diaspora policy and what type of information to be shared as part of diaspora registration.” The plan, presently, is also to conduct a regional analysis of diaspora engagement in EAC, including relevant legal, regulatory, policy and institutional frameworks, trends, good practices, challenges, and recommendations. ALSO READ: EAC govts should tap into diaspora bonds to raise development finance Development experts have long established that the diaspora can play an important role in the economic development of their countries of origin. According to EAC Secretary General, Peter Mathuki, the diaspora has a significant role to play in the development of the region. “The EAC recognizes the role of diaspora remittance, which continues to outpace Foreign Direct Investment to become the largest source of external financing. This now means the diaspora has a huge role to play,” Mathuki told The New Times. “All EAC governments have set up a diaspora desk – recognizing the role of the diaspora community. We are developing a diaspora engagement strategy which will keep them [diaspora] informed of investment opportunities.” The inflow of funds from the diaspora has been on an upward trajectory in recent years. In 2021, the Kenyan diaspora remittance stood at $3.718 billion, while remittances from Uganda stood at $599.3 million. The inflow of funds from the Tanzania diaspora stood at $569.5 while Rwanda diaspora remitted $246 million. The inflow of funds from the diaspora contributed largely to the bloc’s foreign direct investment (FDI) which stood at $8.2 billion - a 35% growth; and helped the region’s economy withstand the devastating economic impact of Covid-19 and the trickle-down effect of the Russia-Ukraine conflict, EAC Secretary General, Peter Mathuki, noted in October 2022, during the bloc’s annual trade and investment conference organized by the East Africa Chamber of Commerce in Irving, Texas, USA. At the time, hundreds of East Africans residing across the USA and East African-focused investors, converged at the conference to explore areas of investment and deliberate on solutions to overcome investment and trade challenges. The region’s diaspora community highlighted a lack of trust in local financial institutions as one of the challenges deterring investment in the region. Mathuki urged them to establish financial institutions such as an EAC diaspora bank, located in one of the EAC partner states, where they can access credit and transact business. He also noted that the diaspora community will be incorporated in EAC signature events, such as Pre-Summit retreats, offering them an opportunity to engage with regional Heads of State, Ministers and the regional business community. According to economists, beyond their well-known role as senders of remittances, diasporas can also promote trade and foreign direct investment, create businesses and spur entrepreneurship, and transfer new knowledge and skills. Reports indicate that, today, India’s diaspora community of nearly 18 million across 136 countries is the largest diaspora community in the world. India’s diaspora, reportedly, brings the highest amount of remittance – $87 billion in 2021 in the world – with the largest percentage coming from the Gulf countries. Scholars have identified five types of diasporas; victim diasporas, labour and imperial diasporas, trade diasporas, cultural diasporas, global – deterritorialized diasporas. These different types of diaspora, it is noted, may overlap and change their character over time.
