African Diaspora Direct Investment (eBook)

Dieu Hack-Polay is specialist in migrant worker and organisational studies. He obtained his PhD in Sociology at Surrey University, UK. He also completed the Doctorate in Education (EdD) - Leadership and Management at the University of Lincoln, UK. He has published a number of books and articles on the topic migrant workers in host societies. He is a Programme Leader for the MSc Management and International Relations at the University of Lincoln, UK.  Juliana Siwale is a Senior Lecturer in International Business at Nottingham Business School, Nottingham Trent University. She obtained her PhD in Microfinance at the University of Durham, UK. She has published widely in reputable journals on issues affecting financial inclusion and development finance, small business enterprise growth and failure of microfinance institutions in developing countries. 

Foreword 7
Contents 10
Editors and Contributors 12
List of Figures 15
List of Tables 16
1 Introduction: Overview of the Book 17
The Making of the African Diaspora 17
Reconceptualising the Diaspora 18
Diaspora Direct Investment and Remittances 20
Audience and Structure of the Book 23
References 24
Part I Diaspora Direct Investment: Rationalities and Impact 26
2 Understanding Diaspora Transnationalism 27
Introduction 27
Historical Perspectives on Diaspora Cross-Border Business Activity 30
Modern Transnationalism and the Diaspora 32
Transnational Diaspora Investment 35
Policy Support for Diaspora Investment 37
Motivation for Diaspora Transnationalism 38
Conclusion 41
Appendix 42
References 50
3 Diaspora Investment and African National Economies: Case Studies 56
Introduction 56
Trends of Diaspora Investments in Africa 58
Case Studies of Diaspora Investments in Africa: Ethiopia and Tunisia 59
Ethiopia: Leveraging Remittances Through Diaspora Bonds and Securitisation 60
Tunisia: Tunisia’s Diaspora Mobilisation Framework 63
Global Practices on Engaging the Diaspora: Lessons for Africa 65
The Enabling Environment 65
Using Highly Skilled Professionals in the Diaspora for Nation-Building 68
Mobilising Diaspora Investment and Entrepreneurship for Private Sector Development 70
Conclusion 71
References 72
4 Mapping of Diaspora Direct Investment: Critical Areas of Investment 75
Introduction 75
Brief Overview of Diaspora Investment 78
Diasporas as Investors and Entrepreneurs 79
Diaspora Investment—Related Challenges 81
Sectors and Business Types Most Attractive 81
Zambia and Diaspora Investment: Investment Destination 82
Sector and Business Type Investment Preferences 83
Methodology 84
Findings 85
Most Attractive Sectors and Business Types 86
Factors Shaping Diasporas’ Sector Preferences for Investment Corruption and Business 88
Lack of Reliable Local Partners and Mistrust 89
Bureaucratic Systems 91
Conclusion 92
References 93
5 Compassionate Investment?—Diaspora Contribution to Poverty Alleviation in Francophone West Africa 98
Introduction 98
Colonialism and the Emergence of Francophone African Diaspora 101
Language and Culture 101
The White School in Black Africa 102
Dominated Economic and Political Domain 102
Growth of the Francophone African Diaspora 104
Impact of the New African Elite and Franco-African Complicity 104
The Impact of the Civil Wars 105
Diaspora and Direct Investment 107
Overview of a Francophone Diaspora in the UK: The Ivorians 107
Social and Community Lives in the UK 109
Work and Employment 109
Compassionate Investment 110
The Nature of Compassionate Investment 111
Remittances 112
Business Venture 113
Conclusion 115
References 116
Part II Management of Diaspora Businesses 121
6 Diaspora Networks: A Social Capital Source for Entrepreneurship in Low-Income and Emerging Economies in Africa 122
Introduction 122
Theoretical Background 125
Diaspora Networks and Social Capital 129
Policy Development for Diaspora Networks 133
Research Approach 136
Discussions and Theory Formation 136
Theory Development Process 138
Diaspora Networks, Social Capital and Entrepreneurial Activity Conceptual Framework 139
Conclusion 141
References 142
7 Transnational Diaspora Entrepreneurship: Do Local Social Networks in Home Country Matter? 153
Introduction 153
Literature Review 156
Introducing Nigeria: The Case Context 159
Data and Methods 160
Findings 162
Conclusion 165
References 166
8 Diaspora Businesses in Africa: Survival and Sustainability 170
Introduction 170
Diaspora Businesses in Africa 171
Africa Rising 173
Diaspora Direct Investment 177
Survival and Sustainability of Diaspora Businesses in Africa 179
Financing and Possible Business Models to Explore 179
Global Trends Impacting the Local Business Environment 183
Reality for Business on the Ground 183
Limitless Opportunities 185
Support Systems and Structures 186
Some Challenges for the African Diaspora and the Role of Technology 187
Conclusion 189
References 190
9 Management of Diaspora Businesses: Issues and Learning 196
Introduction 196
The Concept of Diaspora 198
What Is the Role of Diasporas? 199
Diasporas as Investors 201
Unexplored Investment Vehicles 202
Partnership with the Community and Government 203
Diaspora and Small- and Medium-Size Businesses (SMEs) 204
Nigeria: Economic Context 204
SMEs in Nigeria 206
Conclusion 211
References 213
Part III Gender and Diaspora Investment 215
10 Exploring Gender and Diaspora Investment Among Diaspora Women in the UK 216
Introduction 216
Women and Diaspora Investment 218
Understanding Remittances 219
Gender and Remittances 220
Culture, Gender and Migration: Changing Gender Roles in Diaspora 221
Conflicting Cultures 222
Methodology and the Study 224
Transnational Entrepreneurship and Transitioning Gender Role Relationships 225
Accidental Empowerment? 227
Women‘s Remitting Patterns: Social Missionaries? 227
What Are the Factors That Are Empowering Women to Set up Transnational Businesses? 229
Enabling Environment in Host Country 229
What Are Some of the Factors That Constrain Women Entrepreneurial Endeavours? 231
‘Failed’ Social Networks and Mistrust 231
How Are Women Breaking Down Some of the Barriers That Constrain Them in Their COO? 233
Women’s Investment in Areas That Are Traditionally Constructed as Man’s Territory 235
Conclusion 236
References 237
11 Skilled Migrant African Women of Faith and Diaspora Investment 243
Introduction 243
Theoretical Framework 245
Diaspora, Transnationalism and the Notion of Diaspora Direct Investment 245
Spiritual Capital and Migrant Entrepreneurship 248
Methodology and the Study 249
Factors That Drive Women into Entrepreneurship and the Role of Faith 250
Going Transnational: The Motivations and the Enabling Factors 255
Managing a Transnational Business: Logistics and Dynamics 258
Gender Role Challenges 259
Managing a Transnational Workforce and the Role of Technology 260
The Role of Education and Professional Training 262
Challenges of Running a Transnational Business 263
Dealing with Stringent and Corrupt Government Systems 264
Conclusion 265
References 266
12 Conclusion: Reflecting on African Diaspora Direct Investment 269
Diaspora Contribution to Africa 269
Diaspora Social Capital and Entrepreneurial Spirit 271
Compassion, Gender and DDI 272
References 275
Index 276