Diaspora as Development Actors

Abstract The Ethiopian diaspora, estimated to consist of 3 million people worldwide, significantly contributes to Ethiopia’s socioeconomic development, through remittances, knowledge transfer, investments and advocacy. With remittances exceeding USD 5 billion annually, and with expertise in sectors such as healthcare, technology and education, the diaspora has the potential to help solve Ethiopia’s problems—poverty, unemployment and inadequate infrastructure among them. However, policy gaps, political mistrust, bureaucratic inefficiencies, underdeveloped knowledge transfer mechanisms and a lack of tailored strategies to engage with diverse diaspora communities constrain this potential. This study critically examines Ethiopia’s diaspora engagement framework, identifying barriers and opportunities to enhance contributions to national development. Based on a systematic literature review and comparative analyses of successful models from India, Nigeria, Ghana and Morocco, the study recommends strengthening institutional coordination, fostering trust through inclusive dialogue, streamlining investment processes and developing targeted programmes for knowledge transfer.