The “Diaspora investment in sustainable entrepreneurship for rural youth in Mali” programme, led by IFAD and financed by the European Union, aims to study the investment practices and needs of the Malian diaspora, then support initiatives that will enable the diaspora to invest formally, securely and with impact in their country of origin in favor of economic development, entrepreneurship and employment, to promote the economic integration of young Malians and offer them an alternative to migration, particularly in rural areas.
The Malian diaspora is recognized as one of the pillars of Mali’s development. In 2021, it transferred the equivalent of 5% of GDP to the country. The program studies the investment practices of the diaspora in Europe, which numbers 250,000 people, who are moving from collective and social approaches to more investment in companies looking for a sustainable societal impact and a financial return.
The Malian diaspora’s desire to invest is currently limited by a lack of reliable solutions for channeling investment into businesses.
The programme aims to support such developments by offering professional investment solutions adapted to their needs.
IFAD and its partners are working to raise awareness among institutional players (donors, decision-makers) of the characteristics and potential of these investments for Mali’s development. They aim to convince them to take concerted action to support these investments.
The study on the investment practices and preferences of the Malian diaspora in its country of origin produced by IFAD, ADEPT and RMDA among members and associations of the diaspora in Europe (France, Italy, Spain) reveals an investment potential of nearly 15 million euros motivated by the search for impact and return on investment. The diaspora is interested in supporting entrepreneurship, particularly in the agricultural sector. The study makes recommendations on how to mobilize this potential.
IFAD has partnered with 2 impact investment companies with long-standing experience in Mali to implement 2 investment solutions enabling the Malian diaspora to invest its savings to finance Malian businesses: by joining an investor club to finance a VSE or an investment company to finance SMEs.
IFAD intends to disseminate the results and deliverables of the project as widely as possible, in particular those of the study on diaspora investment practices and preferences, in order to raise awareness among the diaspora, the private sector and institutional stakeholders in Europe, Africa and Mali of the potential economic and social impact of investment practices, and to enable these players to jointly remove the barriers that limit this potential.
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