ADDIS ABABA- The government should create a system to actively engage the diaspora community in productive businesses that would in turn bring the desired dynamism in the war and pandemic affected economy, a researcher made a call.
Economic researcher at the Ethiopian Economic Association Abule Mehari (PhD) said that as Diasporas have a better capacity of capital and knowledge, allowing them to participate in productive businesses will contribute much for national economic recovery.
As to him, the damage of manufacturing industries, cancellation of formal and informal grants and project funds, suspension of AGOA as well as the reduction of production and others have been a challenge to Ethiopia’s economy.
The situation has also caused economic depression and to reverse the situation; utilizing Diaspora’s capability is a solution. “Creating a system for Diaspora communities to contribute sustainably for their home country is general and their participation in productive businesses in particular would have iconic importance for the economic recovery.
Also, it would revive the depressed economy.” The expert further noted that the Diasporas would also benefit better if they invest their capital and knowledge in Ethiopia’s untapped investment potentials. The government has a responsibility in creating a system for them to take part in it.
Even if there is a productive labor force and knowledge, the capital has been hampering productivity and in filling the gap, the Diasporas have a crucial role, Abule elaborated. “There are various Diaspora communities, who are actively engaged in large business, send remittance back home and knowledge transfer.
Connecting them with local youths via joint ventures will have a triple effect such as job creation, utilizing homegrown capacity and increasing domestic production.” To enable economic recovery, prioritizing the agriculture sector is paramount.
For part, Diasporas will serve as a bridge in connecting experienced companies to work jointly, the economist remarked.
BY TSEGAYE TILAHUN
The Ethiopian Herald 13 February 2022
