Ethiopia welcomes Somali diaspora investments
The global Somali diaspora plays a key role in local livelihoods, economies and politics. This is also the case in Ethiopia´s Somali region. The Ethiopian government has deliberately sought to harness investments in local trade and business by its various diaspora communities. As this DIIS Working Paper highlights, interactions between the diaspora and the regional government have taken on a new dynamic in recent years in the Somali region. In exchange for securing their loyalty to the government and its development plans, diaspora returnees and investors obtain various privileges including access to loans. In this scenario of state-led diaspora engagement, the Ethiopian-Somali diaspora is by law prevented from playing a political role in its home country, but nonetheless contributes to stabilizing the current administration. While Ethiopia’s diaspora policy appears successful overall, it is partly undermined by clan favouritism and multiple bureaucratic hurdles.
This DIIS Working Paper is written by Professor Kassahun Berhanu (Addis Ababa University and Forum for Social Studies, Addis Ababa)and is an output of the research program ‘Governing Economic Hubs and Flows in Somali East Africa'.The paper is editedbyTobias HagmannandFinn Stepputat.
