Diaspora Bonds: Tapping the Diaspora During Difficult Times

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Monday, June 20, 2016

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India and Israel have raised over US$35 billion by tapping into the wealth of their diaspora communities. These diaspora bonds represent a stable and cheap source of external finance, often when countries lost access to international capital markets. For diaspora investors, these bonds offer the opportunity to help their country of origin while also providing an investment opportunity. The potential for diaspora bonds is significant for many countries with large diasporas abroad. However, diaspora bond issuance from countries with weak governance and high sovereign risk may require support for institutional capacity building and credit enhancement from multilateral or bilateral agencies. Haiti, for instance, could raise several hundred million dollars by issuing diaspora bonds provided a guarantee structure is created to build trust in the country’s public institutions.

Discuss

We offer clean water, cookstoves and solar power lighting systems, how can we adopt the diaspora co-op to reduce the cost per unit to the families of the diaspora and create woman owned businesses.