Mobilizing Diaspora Direct Investment A new source of

Mobilizing Diaspora Direct Investment A new source of capital Individual Impact Investing in the 21 st Century London – United Kingdom

What are the facts? • What we know about Diaspora capital flows: – US$450 B in remittance flows from West to Emerging Markets (10%-15% per year) - WB – US$40 B in flows into Africa alone (P 2 P) – Conventional Wisdom: Subsistence Consumption

What do Remittances say? • Remittances outstrip any other form of flows – Size – Resilience • Do Remittance flows = Diaspora Investment Flows? • What do we know about remitters and their motivations…

GWU – Western Union Research • GWU-Western Union Afro Migrant Study: – About 1, 000 members of US-based African Diaspora were surveyed – sponsored by WU – Research Objectives: • • • Profile? Investment interest and activity? Obstacles to investments? Diaspora investment advantages? Investment motivation?

GWU-WU Findings (1) • Profile? – Average stay in the US: 22. 18 years – 72. 2% plan to return “Back Home” – Average of respondent: 46 years old – More than 50% have annual incomes in excess of US$100, 000 – Average remittance in past 3 yrs: US$12, 974 (std dev: US$22, 873. )

GWU-WU Findings (2) • Demographics:

GWU-WU Findings (3) • Risk Tolerance

GWU-WU Findings (4) • Contact with “Back Home”

GWU-WU Findings (5) • Investment Interest (%)

GWU-WU Findings (6) • Investment Activities (%)

GWU-WU Findings (7) • Diaspora investment motivation summarized: • Financial • Emotional • Social-status • Political

Implications? • How to translate into a palatable proposition? • Need to: – Facilitate Access to Impactful Opportunities – Provide Reasonable Prospects for Returns – Provide Process Transparency – Address Voice Mechanism • Must do this in a single proposition…

Solution…

Homestrings Update • Over $10 million invested via Homestrings. com since 2/2012 • Over 1000 members in database • Infrastructure bonds - key drivers – Kenya, Nigeria, Ghana, Mozambique… • Public financing debt: – Cote d’Ivoire (2032), Congo, Uganda, Egypt, … • Financing Pipeline: Healthcare, Housing, Agribusiness and Mining…

Next Steps? • Diaspora and Other interested Investors • Registering at the average rate of 100 a month • Growing book of Opportunities • • Private Equity Funds Diaspora Bonds (gvts, corporations, n/profits) Housing (investment, lending, buying) Deals (co-investment and stand-alone)

Conclusion • Homestrings – a repository of investment opportunities for Diaspora and other investors • Homestrings – a platform for vetted project promoters • Homestrings – first impact investment “shopping mall” for the Diaspora.

Contacts • Eric V. Guichard – Founder/CEO eric@homestrings. com • Derek Smail – Senior Advisor/Member of Advisory Board DSmail@homestrings. com • Address: www. homestrings. com