The new Diaspora Policy and engagement of Ethiopians in the Diaspora

(Mof)The Government has long been aware of the importance of the knowledge, experience, skills, and financial resources of Ethiopians in the Diaspora as a vital contribution to national growth. Indeed, the potential role of the Ethiopian Diaspora in development efforts has been given unprecedented recognition by the government in recent years. And to activate maximum use of Diaspora resources the Government has been aware that the relationship must be institutionalized. It has therefore established formal mechanisms to encourage and facilitate Diaspora engagement, setting up specific departments within Ministry of Foreign Affairs, mandated to assist and cooperate with the Diaspora. In addition to this, in recognition of the need to involve the regional states fully in Diaspora activities, the Government has also encouraged the replication of the federal level initiatives and systems at regional level. Each region has created an office specifically to deal with Diaspora activities and encourage the Diaspora to engage at regional as well as national development level. These efforts, accompanied by a range of policy reforms and other measures to facilitate Diaspora participation, have been widely welcomed. The effort to provide privileges to members of the Diaspora and enhance engagement might have included the granting of dual citizenship rights. However this was considered problematic because of concerns over border populations and the Government preferred to issue identity cards for Persons of Ethiopian Origin (PEOIC), also known as a “Yellow Card”. This has proved a useful and convenient way of granting Ethiopians that hold foreign citizenship almost all the same rights and privileges as an Ethiopian citizen. It has greatly facilitated the participation of foreign citizens of Ethiopian origin in local activities. In fact, returning migrants, Ethiopian by birth, although of changed nationality, are considered as domestic investors and have the privilege of being engaged in all areas reserved for domestic investors. This has opened up the opportunities for Diaspora returnees to be privileged in a number of other areas, including exemptions from custom duties, as well as regulations allowing investors to import duty free vehicles, capital goods and the construction materials necessary for the establishment of new enterprises or for the expansion or upgrading of existing ones. Non-resident Ethiopians (whether Ethiopian or foreign citizens) have been allowed since May 2004 to open foreign currency accounts in Ethiopia. These include fixed accounts, with varying maturity terms, as well current accounts that allow for withdrawals to be made at any time. By allowing non-resident Ethiopians to open foreign currency accounts, Ethiopia has been able to inject much needed hard currency into the economy. It is also assumed with reason that savings deposited in Ethiopia will lead to future Diaspora investment in the country, be it purchasing a house or setting up a business. The Government has also introduced an attractive investment regime which provides numerous incentives to investors from the Ethiopian Diaspora to invest in the country either through 100% equity ownership or in joint ventures. Many members of the Ethiopian Diaspora are actively engaged in various investment activities, including the agriculture, agro-processing, manufacturing and service sectors. During the last decade some 2353 Diaspora projects and investments, worth about 20 billion Ethiopian birr have been registered. In the year 2011/12 alone, another 249 investment projects worth 2.06 billion Birr were registered, creating significant employment opportunities. The Government has been working hard to facilitate the smooth transfer of remittances from the Diaspora. It is now possible to open a foreign currency account in the country in which they live which can be used as collateral to obtain credit in local currency from domestic banks. One result of this has been a marked increase in the remittances received from the Ethiopian Diaspora. In 2011/12 for example, a total of US $1.8 billion was transferred to Ethiopia. While, the Government has also undertaken several other initiatives to enlist the Diaspora in capacity development, including a range of directives benefiting Ethiopians abroad, it has not previously drawn up a comprehensive national Diaspora policy. Now, this has been produced and endorsed by the government, aiming to encourage Ethiopians and foreign nationals of Ethiopian origin living abroad to establish strong links with their motherland, and it is set to become part and parcel of Ethiopia’s development endeavors. The policy specifically seeks to ensure the rights and privileges of the Ethiopian Diaspora as well as harness their knowledge, experience, skills and financial resources to spur economic growth in the country. The Policy document has been carefully prepared with the aim of responding efficiently to the need to ensure active Diaspora participation in political, economic and social activities of the country, so the Diaspora benefits and it also contributes to the well being of the country. The policy is based on detailed research of previous directives and on the implementation of activities, using the best experience of other countries, as well as academic research, experience sharing forums, and suggestions by members of the Diaspora themselves. The Policy document is divided into three parts. Part one focuses on the definition, vision, mission, objectives and relevance of the policy and a review of the global status of Diaspora engagement. Part two deals with the basic principles and major goals of the policy. Part three presents the strategies and implementing bodies of the policy. The document estimates that the Ethiopian Diaspora numbers no less than 2 million around the world; and its starting point is the belief, noted in the Foreign Affairs and National Security Policy and Strategy Document, that Ethiopians in the Diaspora could play an important role in carrying out research, investing at home, finding friends for Ethiopia and influencing their country of residence to cooperate with Ethiopia. In addition, fully aware of the key roles played by Ethiopians residing abroad, it emphasizes that the government should take the initiative to create the most conducive environment possible for them to play a constructive role. This indeed is why it is considered essential to adopt a national Diaspora policy to protect their rights of the Diaspora abroad and to resolve their domestic problems. The policy is based on the principles of collaboration, effectiveness, resource utilization, complementarity with national development policies, participation, transparency and partnership. The major goals are specified as preserving the rights and interests of the Diaspora; improving Diaspora engagement in investment, trade and tourism; enhancing knowledge and technology transfer; encouraging foreign currency inflows and strengthening Diaspora participation; promoting cultural values and image building ; advancing Diaspora participation in good governance and democracy; encouraging philanthropy and development associations; and broadening Diaspora participation in image building The main elements of the strategy are identified as establishing reliable information collection and delivery systems and a permanent information exchange forum; providing recognition of Diaspora participation; encouraging organized participation; and giving special attention to organized youth Diaspora participation and support to volunteer youth Diaspora. The government is also going to put in place various mechanisms at federal and at regional level to ensure implementation of all these policies, and to monitor and evaluate their success. Overall, the Government is committed to mobilizing the Ethiopian Diaspora for the implementation of the Growth and Transformation Plan which aims, inter alia, to double Ethiopia’s gross domestic product over a five year period. The Diaspora is a vital element in this, and indeed without its aid, it cannot be achieved. The new Diaspora policy underlines the Government’s acknowledgment of the importance and necessity of the Diaspora and its recognition of the value of its contributions to development. The general basis of the policy is to build up a strong relationship between the Diaspora with their country of origin – Ethiopia, by encouraging and facilitating conducive environment for participation of Diaspora on the ongoing processes of peace and democratization-building to benefit both Ethiopia and their own involvement, and to preserve their rights and interests abroad.