From “Black Tax” to “Business Capital” – Transforming African Diaspora Remittances

Every year, over 100 billion USD in remittances flow to Africa. A large portion of this money is used to cover the immediate needs of family and friends. This raises a key question: How can diaspora capital also be used in a way that enables sustainable economic transformation in their native countries?

Diaspora members have capital, networks, and expertise but lack support structures. Digital platforms and financing models such as impact investing or crowdfunding offer new ways to leverage diaspora funds for long-term transformational impact. One example is WIDU.africa – an innovative initiative of the German Federal Ministry for Economic Cooperation and Development (BMZ) in collaboration with African diaspora. Through a digital platform, it connects private remittances with public funding to jointly support entrepreneurship and economic growth in Africa. 

This talk highlights why the African diaspora is far more than an economic power – it drives knowledge transfer and shapes the future of global cooperation.