Ghana plans diaspora engagement policy to attract foreign direct investment

Ghana is on the brink of unveiling a new policy aimed at deepening engagement with the diaspora community, a move that could potentially attract significant foreign direct investment into the country. The policy, which is set to be presented to Ghana's cabinet for approval, comes as part of efforts to leverage the economic and cultural ties that Ghanaians living abroad possess. The Minister of Foreign Affairs and Regional Integration in Ghana has highlighted the importance of tapping into the diaspora's potential for investment and remittances, citing the significant contributions already made by the diaspora to the country's economy in recent years. One of the key factors driving diaspora engagement in Ghana is the cultural orientation that encourages Ghanaians living abroad to make tangible contributions to their homeland. The cultural events like Pan-Afests, which have now been rebranded as 'Year of Return,' have played a crucial role in attracting African-Americans and Ghanaians living abroad to visit the country and invest in various sectors. This cultural bond has not only strengthened ties between Ghana and its diaspora but has also resulted in increased remittances and investments flowing into the country. Moreover, Ghana's stable political and economic environment has positioned the country as an attractive destination for diaspora investment. Over the past three decades, Ghana has emerged as a stable democracy with relatively stable macroeconomic policies, creating a conducive environment for businesses and investors. This stability has not gone unnoticed, with Ghanaians and African diaspora from countries like the US, Canada, UK, Japan, and beyond showing interest in investing in Ghana. The potential for economic growth through diaspora engagement in Ghana is significant, as evidenced by the growing remittances and investments from Ghanaians living abroad. The diaspora population's involvement in the country's banking sector, as well as their contributions to various industries such as education and entrepreneurship, underscores the positive impact that diaspora engagement can have on Ghana's economy. John Gatsi, Dean of the School of Business at the University of Cape Coast in Ghana, emphasized the need to incentivize Ghana's diaspora across the globe to view the country as an attractive investment destination. He highlighted the importance of expanding diaspora engagement beyond traditional sources of remittances and investments, calling for policies that would encourage more Ghanaians living abroad to contribute to their homeland's development. Johnson Chuku, Managing Director and CEO of Cowry Asset Management, highlighted the lessons that Nigeria could learn from Ghana's diaspora engagement initiative. He underscored the importance of creating a stable political and economic environment to attract investment, noting Ghana's success in positioning itself as a favorable destination for Africans returning to the continent. Chuku also pointed out the cultural and economic factors driving diaspora engagement in Ghana, emphasizing the need for Nigeria to adopt similar strategies to harness the potential of its diaspora population. As Ghana moves forward with its diaspora engagement policy, there is optimism about the economic opportunities it could unlock for the country. By leveraging cultural ties, fostering a stable business environment, and incentivizing diaspora investment, Ghana aims to further strengthen its economic growth and development. The commitment to deepening engagement with the diaspora community reflects Ghana's recognition of the valuable contributions that Ghanaians living abroad can make to the country's prosperity and resilience in the global economy.