Leveraging the African Diaspora

US AID has partnered with Western Union and and EcoBank to provide funding and technical assistance to members of the African diaspora who are based in the US but who want to build small businesses in their home countries. Loans are relatively small -- between $50,000 and $100,000 and there is a requirement to have a local partner. To see details go here.

The idea is that members of the diaspora have a variety of capital -- human and otherwise -- as well as valuable local knowledge that they can put to effective use back at home to strengthen markets, create goods and services, and jobs. Presumably, US AID believes these folks need an extra incentive to do this work in their home countries and the grants serve that function.

This attention to the role entrepreneurs can play in improving economic conditions in Africa is encouraging and the model (from the information we have so far) is an interesting one. Hopefully, it will work better than some past aid efforts.

- Karol