As donor countries cut foreign funding to prioritize domestic interests, subSaharan African countries face a projected 16-28% decline in net bilateral overseas development assistance,1 revealing weaknesses in the global aid system and urgency to identify alternative sources of flexible capital for the social sectors. This viewpoint explores the potential for leveraging diaspora philanthropy to help finance development, noting benefits both to the African continent and to the African diaspora itself.
Diaspora philanthropy is a form of diaspora engagement. It involves the transfer of money, goods, knowledge, skills, or other assets for the social benefit of a country or region tied to one’s origin or ancestry, regardless of citizenship. It is important to note that there is a blurred line between diaspora remittances and diaspora philanthropy, particularly in the African context, where “family” extends well beyond the nuclear family.
The potential of diaspora philanthropy depends on supply and demand factors. On the supply side, studies show that the diaspora is motivated to engage. These motivations include expressing care for a community, building or maintaining ties, fostering belonging, or fulfilling a felt obligation.2 On the demand side, diaspora philanthropy is more sustainable than other sources of aid or investment, as it has proven resilient in the face of crisis and economic downturns and as it tends to be passed down to subsequent generations. Moreover, the diaspora typically has a deeper understanding of needs and shared values compared with other foreign sources of capital.3
Research on diaspora philanthropy on the African continent is limited; however, two comparative datasets and a literature review offer helpful insights. The 2023 Global Philanthropy Tracker noted that ODA and private capital investment fluctuated during crisis as remittances grew exponentially and philanthropic flows remained steady.4 It also revealed Africa as the top recipient of cross-border philanthropic support among 15 of 19 donor countries with available data on their recipient regions. The 2025 Global Philanthropy Environment Index, meanwhile, notes rising diaspora philanthropy in Ethiopia, Ghana, Senegal, Uganda, and Zimbabwe, supported by the easing of restrictions on cross-border inflows (Ethiopia), tax benefits or exemptions (Ghana, South Africa, Tanzania), policies focusing on the diaspora (Ghana, Senegal), collective giving platforms (e.g., Ethiopia), and/or digital giving platforms (Zimbabwe).5
Successful strategies for attracting philanthropy
Tools and strategies to channel diaspora philanthropy towards development have proven successful in different parts of the world. The Mexican & Moldovan governments introduced two different matching grant initiatives to attract funds from diaspora communities. Mexico introduced the “3×1 Program for Migrants” in 2002, which attracted funds for infrastructure and development via hometown associations,6 while Moldova’s “PARE 1+1” program, launched in 2010, attracted diaspora funds for business development.7 Another successful tool that helped channel diaspora resources towards development in Israel and India is diaspora bonds. Although efforts in Nigeria and Kenya did not yield the desired results, diaspora bonds proved to be successful in the former two countries. The difference in experience is attributed to Israel and India engaging in trust-building efforts, such as partnering with trusted financial institutions.8 Other popular tools for pooling resources, both financial and non-financial, and channeling them towards development projects are various collective giving platforms set up by intermediary organizations. A handful of examples focusing on Africa include the African Diaspora Innovation Fund, the Ethiopian Diaspora Trust Fund, AfricanGiving.org, and the African Union’s 2019 Continental Forum on the Role of the Diaspora in Higher Education, Research & Innovation in Africa.
As evident from several of the examples shared, diaspora contributions have extended beyond funding to include knowledge sharing and expertise.9 Several African universities successfully mobilized support from the diaspora to strengthen their higher education programs. In Nigeria, diaspora scholars co-designed and taught STEM curricula in collaboration with local universities.10 Similar collaborations exist in Ethiopia, Ghana, Kenya, Nigeria, and Zambia, which are successfully engaging the African academic diaspora.
Remaining roadblocks
Despite progress, there are challenges limiting the potential for diaspora philanthropy in Africa. At the individual level, there is a lack of engagement with the diaspora and a lack of information and guidance about opportunities and trustworthy platforms, which makes giving costly or complex.11 At the institutional level, philanthropy organizations may lack the institutional capacity to successfully identify, understand, and engage diaspora donor segments. At the ecosystem level, a lack of infrastructure of restrictive government policies can make it difficult to realize the potential for diaspora philanthropy. To leverage diaspora philanthropy, coordinated action is necessary to overcome these challenges.
Mechanisms used to attract and channel diaspora funds toward investment may differ depending on the country and region. Designing appropriate policies, programs, and platforms typically requires dialogue and partnership among ecosystem actors, including members of the diaspora. Such dialogues can raise awareness among different segments of the diaspora about opportunities to meaningfully contribute to the development of their homeland. They can also help build understanding about actual costs and hidden costs involved in contributing and identify ways to reduce those costs while building trust through transparency and accountability. Towards this end, the World Bank and United Nations encourage fintech innovations that enhance access and strengthen the transparency of formal channels for diaspora contributions.12
In summary, countries that understand the motivations of their diaspora and develop intentional and responsive strategies and cross-sector collaborations are better positioned to leverage diaspora philanthropy to build a more resilient and sustainable social sector.