How can the human and financial capital of Sierra Leoneans abroad be better utilised to create a sustainable economic future for the country? This was the key question at a recent roundtable on the potential of diaspora investment to play a more significant role in Sierra Leone’s economy.
The African Foundation for Development (AFFORD) and the Social Investment Consultancy organised the meeting on behalf of Invest Salone, a UK funded private sector development programme. The virtual event allowed over 40 diaspora investors and experts from around the world to identify barriers to diaspora direct investment and explore support needs and investment opportunities, particularly in real estate, technology, agriculture, renewable energy and tourism.
Participants heard how Sierra Leone’s diaspora contributes to the economy through remittances, trade and investment. Remittance figures for 2023 alone indicate a contribution of US$0.23 billion to the country’s economy, slightly below the approximately US$0.26 billion from foreign direct investment.
Invest Salone’s team leader, Chukwu-Emeka Chikezie, opened the discussion, saying that the objective of the meeting was to identify how Sierra Leoneans abroad could better contribute to the country’s transformation. He highlighted opportunities such as a diaspora bond, establishing angel investor networks, a diaspora chamber of commerce and technology-based investment platforms.
Drawing on pre-roundtable interviews with diaspora investors, which indicated that technology, real estate and agriculture are the most common sectors for investment, the session went on to hear the challenges facing existing investors in these sectors and potential solutions.
Naomi Sesay, who is fundraising for the Matamp City Project – a smart, sustainable real estate development in Sierra Leone – discussed issues such as the scarcity of essential farm machinery and how these problems could be overcome by sharing resources with other agricultural investors and by servicing and repairing older equipment.
Tamba Lamin, a co-investor in a sustainable housing estate along the Freetown Peninsula, noted that inefficient banking systems often impede the transfer of essential funds for investment projects.
Efayomi Carr from Flourish Ventures, a venture capital firm, has 15 years of experience investing primarily in African tech. He believes technology and skills development can provide solutions: “Cultivating talent can develop local solutions and enable outsourcing to attract additional capital in a global economy.”
Ade Freeman, of the Eden Group, highlighted the important role that interpersonal trust plays in diaspora investment choices and the importance of developing more structured financing. He also highlighted the underutilised potential of private equity venture capital in Sierra Leone.
Breakout discussions followed to allow more investors to share their experiences and identify concrete solutions to challenges.
The suggestions included providing technical assistance for entrepreneurs and investors, conducting further research on diaspora bonds and other financing opportunities, exploring the feasibility of establishing an angel investor network and facilitating sector-specific lobbying efforts.
Chukwu-Emeka Chikezie closed the meeting, saying it was important to share lessons with others struggling with issues. “There is clearly a real opportunity for harnessing and scaling up diaspora investment. The test now is for us to build the networks and relationships that will help us drive Sierra Leone’s development.”
Commenting on the event, Stella Opoku-Owusu, Executive Director of AFFORD, said that African diaspora investors are a vital resource for the continent’s growth. “The Sierra Leonean diaspora investors who participated in this exercise demonstrated passion and motivation for development in Sierra Leone. They also demonstrated a focus on sustainable socio-economic impact and a higher risk tolerance compared to foreign direct investment. The increased focus on domestic politics by richer countries calls for urgent action that practically leverages diaspora investment for development, as is being exemplified by Invest Salone.”
