176 • Leveraging Migration for Africa: Remittances, Skills, and Investments
nesses in Ethiopia, including cafes, restaurants, retail shops, and transport services in big cities and small towns that were otherwise restricted to Ethiopian nationals living in the country (Chakco and Gebre 2009). The treatment of potential investors from the diaspora remains controversial. Some diaspora members have complained that certain countries (for example, Burundi) have more favorable policies for foreign investors than for members of the diaspora. It may be better to provide efficient procedures for all investors, without requiring proof of the investor’s origin and nationality. However, origin countries could still benefit from focusing their scarce resources on providing services to members of the diaspora and to move beyond consular services to a broader range of support for diaspora investors.
Encouraging participation in savings and social security schemes Governments can mobilize resources from diasporas by encouraging their participation in social security, housing, and microfinance programs. Bangladesh has created a number of schemes tailored to investors and nonresidents, such as saving accounts in foreign currency. The Philippines allows its citizens to enroll in or continue their social security coverage while abroad. Workers from the Philippines can also continue contributing to the Pag-IBIG Fund (Home Development Mutual Fund), which Filipinos can access through embassies and consulates abroad (ADB 2004). Some of these initiatives could be implemented in Africa to generate savings.