Reversed brain drain and remittances

Of the estimated 3.6 million Africans who live in Europe and North America over 100,000 are highly qualified professionals. The World Bank estimates that Africa loses 50,000 executives and 23,000 university graduates every year looking for greener pastures compounding the huge intellectual loss that is brought about by the HIV scourge.
Partly to make up for this brain drain, Africa is paying about 4 billion dollars of its development assistance to hire foreign experts on whom it is increasingly dependent in many fields. This undoubtedly is a fairly high cost to an already impoverished continent.
The word is that African nations will have to learn to manage and achieve development goals thru the transfer of relevant skills and financial resources of their Nationals in the Diaspora.
The International Organization for Migration (IMO) is one organization, which continues to assist, encourage and mobilize African countries on issues of migration. It has recently adopted a new and improved program to encourage the transfer of vital skills and resources from the African Diaspora. Professionals could return to their homeland on a temporary basis or even relocate permanently either to complement local initiatives or to create them.
There is growing recognition that the African Diaspora is a key strategic asset in building its capacity. African intellectual, economic and political assets abroad are a vast reservoir yet to be tapped to achieve the common vision of development.
Already, the African Diaspora are Africa’s biggest aid donors. Remittances account for substantial contributions to increasing number of African nations: in 1999 remittances from migrant workers amounted to 4.1% of GDP in Nigeria, 4.2% in Egypt, 6.4% in the Comoros, and an impressive 16.7% in Eritrea.
In Ethiopia we were hovering in the range of 1.2% of GDP for the years 1996 to 2000. This figure could be higher since most of the money flows through unofficial channels to avoid exchange rate restrictions, high taxes and tariffs, and bureaucratic requirements or because of poor and unavailable financial services. Experts tell us the potential is much higher, if only we could tap it.
There are an estimated one million Ethiopians living abroad today, mostly in the Middle East, Western Europe and North America. Eth. Economic Association estimates that 9.4 billion Birr in remittances was transferred in 2002/03, and only about half of it came thru official channels like banks, money orders or the post office. In Addis Ababa there are at least 46 informal local agents (sometimes specialized by regions of transfer). The remittances support families, build schools, finance small clinics and are nothing to scoff at.
The potential for remittances Birr is put at about 17.5 billion and, if fully accessed it could more than bridge the resource gap that exists in the country because of shortfall in domestic savings.
If the skilled living in the Diaspora were permitted to open dollar accounts locally and if the price and hassle of acquiring land were reasonably surmountable, a lot more dollars and skills could flow in maybe even eventually displacing development aid. The cost of land in Addis Ababa does not have to compete with New York City. Home for the family is a primary consideration of any professional who wishes to return with skills and money.
It could help if capital markets were allowed to operate providing an exit strategy for investors who for whatever reason need to cash in and get out.
And skills inventory has to be compiled and properly matched with the skills deficit. While we are at it we could do away with the exit visa requirement altogether and revisit the issue of dual citizenship. Ethiopia is not in good company with Cuba and North Korea when it comes to exit visas.
The government has been slow in understanding and appreciating the importance of remittances, although the foreign office has established a directorate for expatriate affairs to encourage professionals to return, contribute and invest in Ethiopia.