Remittances - the way to go!

A June 2007 news report by Martin Oketch shows that the volumes of money remitted to Africa by its citizens living abroad surpassed the development aid to Africa in 2006 by $56 billion.

Professor Myles Wickstead CBE who is currently a senior adviser to the England -Africa Partnership Programme and Business action for Africa said during his public presentation at the Sheraton Kampala Hotel recently that in 2006 development aid to Africa amounted to $25 billion while remittance from African Diasporas abroad was $81 billion.

Diaspora remittances have a huge potential to stimulate the continent's socio-economic development. Oketch's article is clear testimony to what most of us have always believed. Diaspora remittances not only outstrip aid but they go to Africa without any precondtions, are targetted and relatively safe from any corrupt practices.

Malawians ought to embrace this opportunity by fully participating in the remittances market. We need to do more to encourage diaspora remittances - Government as well as ordinary Malawians both in-country and abroad have an important role to play in this aspect. The government, private sector and all partners should work together to create an enabling environment that will promote foreign exchange in-flows through remittances.

Those interested in working towards this goal might be interested to learn that a new initiative is underway to help encourage Malawians to send more money back home. The key strategy to be employed is to offer a money transfer service that is reliable, fast and economical - a service that Malawians can trust and feel proud to use. This is a Malawian initiative, by Malawians, for Malawians.

For more information visit: www.bantuholdings.net

Kennedy Lweya, PhD