Download Leon Isaacs, Managing Director, IAMTN

LEON ISAACS
IAMTN and
DEVELOPING MARKETS ASSOCIATES
UK - Jamaica Investment Forum
29th March 2012
DMA Consultancy Services
Our Consultancy Business
•
Remittances and Payments
– Private Sector: Market Entry,
Diaspora Engagement and Seed
Funding
– Public Sector: Remittances Pricing,
policy development
•
Financial Access and Inclusion
– Financial literacy programs
– Product Development
•
Regulation and Compliance
– Experts in PSD, EMI
– Advise governments in safeguarding
public funds without stifling
competition
International Association of Money
Transfer Networks
• Trade body for remittance companies
• Extensive dialogue with regulators
• Information services
• Newsletters
• Conferences
• Seminars
Remittances Overview: Jamaica
REMITTANCES OVERVIEW: JAMAICA
Country Profile
GDP 2010: USD 1,1895.2 Million
Flow of FDI and Remittances to Jamaica
(USD Mn)
Remittances as % of GDP 2010: 14%
Remittance Inf lows
FDI (Inf lows)
2,000
FDI as % of GDP 2011: 2%
1,800
1,600
Size of Diaspora: Estimated to be over 2
Million Jamaicans living overseas
1,400
1,200
1,000
800
Location of Diaspora: UK
(London and Birmingham),
USA (New York and Washington) and
Canada
Total Savings Jamaican Diaspora:
USD 5 Billion
600
400
200
2007
2008
2009
2010
Encouraging Diaspora Investment
Diaspora Investment can complement FDI in seeing growth in Key Sectors
Remittances are the largest flow of private
funds to Jamaica.
Currently main use is for individual
consumption
There are a number of tools available for
harnessing capital from the Diaspora for
more sustainable, productive uses in Jamaica.
Tools for Investment
1. Diaspora Bonds
2. Mutual Funds
3. Collective Investment Schemes
4. Returning Migrants
KEY SECTORS FOR DIASPORA
INVESTMENT
Real Estate
SME Private Sector Development
The Jamaican Stock Exchange
Infrastructure
Tourism
Health
Collective Investment at community level
JAMPRO have developed coherent Business Diaspora Strategy to encourage
Diaspora Investment
Diaspora Bonds
Pre-requisites for issuing a Diaspora Bond: Know Your Diaspora (KYD)
Did Not Meet
Successful Issuance
Targets
IN THE CASE
OF JAMAICA?
When are the Diaspora likely to Invest?
Ghana
Kenya
Ethiopia
Large Diaspora in OECD countries
Y
Y
Y
Y
Relative trust in the home country government
Y
Y
N
Y
Strong ties between the Diaspora and the Country of Origin
Y
Y
Y
Y
Access to the Diaspora – Effective marketing campaign.
Y
Y
N
Y
Golden Jubilee
Successful Issuance?
Bond Over Subscribed
Kenyan
Infrastructure
bond: Oversubscribed
Ticks all of the
The Renaissance Dam
boxes for a
bond DID NOT
successfully
MEET TARGET
engaging its
Diaspora
Government of Jamaica is planning to issue a Diaspora Bond in
August to raise $1 billion
Mutual Funds
The Rwandan Diaspora Mutual Fund (RDMF): THE BNR
have found a way to use remittances to promote national
development.
•Set up in March 2009. The fund is managed in partnership with the
Diaspora, the BNR provides administrative and management
support.
•To date no figures have been published on how much investment
has been raised
Good relationship between the Government of
Jamaica and its Diaspora overseas.
Real opportunities to develop a similar fund for
SME development in Jamaica.
Collective Investment
PRIVATE SECTOR LED
Matching Service – factsheet for the
Diaspora on investment opportunities
Invest directly through the website and
monitor progress
Raised $1 Million for the Kenyan
Diaspora Bond, END OF 2011
GOVERNMENT LED
4+1 Project undertaken by migrant
associations in the USA, Mexican Federal,
State and Municipal Government and
Western Union.
RESULTS
Spurred employment and generated
commerce in the localities where the
investment took place.
Collective Investment from the Diaspora into Key Sector that complements
FDI can encourage Growth.
SUMMARY
• Diaspora investment and FDI are not mutually
exclusive.
• The Diaspora is a great source of potential
investment
• Understanding the Diaspora is critical
• There are plenty of potential investment
schemes that can be developed – use global
best practice