31 - This is Why More People in the African Diaspora Not Investing in Companies in Africa
Discover why the African diaspora prioritizes remittances over investments and how trust plays a pivotal role in shaping opportunities. Learn about the emerging solutions bridging the gap and unlocking Africa’s potential for global investors.
This Is Why More People in the African Diaspora Are Not Investing in Companies in Africa
The African diaspora contributes billions of dollars annually to their home countries, but the vast majority of these funds are used for consumption rather than investment. This pattern raises a compelling question: why aren’t more people channeling their resources into African businesses? The answer lies in one critical factor—trust.
A study reveals that while remittances are often driven by immediate familial needs, investment requires a sense of security and reliable structures. For many in the diaspora, the challenge lies in identifying trustworthy opportunities that promise tangible returns. Without these “trust bridges,” the leap from remittance to investment remains daunting.
But there’s good news: innovative entrepreneurs are stepping up to fill this gap. These changemakers are building platforms and networks designed to instill confidence, offering pathways to meaningful investment in Africa’s burgeoning markets.
The question is, could you be one of those trust builders? Whether you’re a part of the diaspora or simply inspired by Africa’s potential, now is the time to rethink how we channel resources into sustainable growth.
Listen to this episode of Pattern Cognition with Sid Mofya to learn more about the dynamics at play and how you can become part of the solution.
Highlights:
00:00 Introduction: The Investment Gap in the African Diaspora
00:17 The Trust Issue in Diaspora Investments
00:26 Building Trust Bridges for Investment
Links:
Website: https://www.sidmofya.com/
LinkedIn: https://www.linkedin.com/in/sidmofya/
Transcript:
Why are more people in the African diaspora not investing in companies in Africa? We did a study and we know that Africans in the diaspora send a lot of money back home, most of that money for consumption, but they are not investing it. Why is that? The answer is trust. They have not found a way to reliably invest in opportunities that will yield a benefit for them.
So who are the people that are building it? Those trust bridges. You'd be one of them.