Main area: Migration
Theme: Engagement with diaspora
Assessment: ODA-eligible
Provider country: Switzerland
Recipient country: Benin, Ghana, Senegal, Nigeria
Implementing agency: AFFORD
Budget (CHF million): 1.7
Year(s): 2021-2025
Purpose code: 16020:20|32130:30|15190:50
Case number: Migration / 27
Protecting and creating jobs: a diaspora-led response to the COVID-19 emergency and systemic obstacles of SMEs growth
The programme is oriented around the three components of the Global Programme for Migration and Development (GPMD) framework (2022-2025): 1) Safe Labour Migration 2) Inclusion and Social Cohesion and 3) Contribution of migrants to the sustainable development of their countries of origin. It will contribute to the socio-economic development in West Africa promoting decent employment conditions and the promotion of migrant workers' rights, the inclusion of migrants in urban areas of host countries and the contribution of migrants to the sustainable development of countries of origin through the transfer of remittances and expertise and the promotion of entrepreneurship.
AFFORD project falls under component 3. The main objective is to contribute to job protection and job creation, economic recovery and long-term resilience following the COVID-19 emergency in Benin, Ghana, Nigeria and Senegal, as a result of diaspora-led intervention and channeling the assets of the diaspora (skills, investment and innovation) into local economies. Specific objectives include:
Objective 1: Support SMEs to protect the existing and create new jobs in strategic sectors that contribute to long – term development, social impact and resilience, through access to financing.
Objective 2: Strengthen African networks and knowledge and enable diaspora and local entrepreneurs to take advantage of economic and job opportunities in Africa.
Objective 3: Advocate to unlock the potential of SMEs, address selected barriers to diaspora investment and youth employability, and attract investment to SMEs and local economies.
Objective 4: Support innovative diaspora initiatives in order to channel and maximise the impact of diaspora assets in the target countries.
Objective 5: Enhance, document, and communicate the impact and build operational excellence and common standards across the 5 countries (Benin, Ghana, Nigeria, Senegal and the UK).
Since early 2020, the GPMD has been supporting AFFORD through a pilot project in Benin. Following the positive results, the project has been expanded to three new countries: Ghana, Nigeria and Senegal. Results from the pilot phase in Benin:
Successfully mapped Beninois diaspora in Africa and Europe, and focalised analysis of Beninois diaspora entrepreneurs in Lagos, Nigeria.
Conducted an analysis on the characteristics of Beninois diaspora in Africa and Europe.
Resumed diaspora and investment sessions by the Benin Embassy in France.
Conducted financial instruments analysis to maximise impact of diaspora-led investment and remittances. The project is exploring the use of loans including a remittance guarantee loan scheme.
This activity is deemed ODA-eligible. AFFORD's approach mobilises the financial, intellectual and political assets of the diaspora ODA and non ODA-eligible countries and channels them to stimulate entrepreneurship, economic growth, social development and job creation in the global South. Given the activity’s clear developmental focus on the countries of origin, it is assessed to comply with the conditions for ODA eligibility under Criterion 8.
This work was approved and declassified by the Development Assistance Committee’s Working Party on Development Finance Statistics.
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