Legal scholar and governance advocate, Prof. Stephen Kwaku Asare has called for the creation of structured financial instruments including diaspora bonds, SME investment funds and infrastructure vehicles to channel a portion of Ghana’s recorded $7.8 billion annual remittance inflows into productive sectors of the economy.
His intervention aligns with ongoing policy discussions on how to improve the developmental impact of remittances, which currently serve largely as household support but remain underutilised as a source of long-term investment capital.
Ghana recorded about $7.8 billion in diaspora remittance inflows in 2025, according to Bank of Ghana data, making remittances one of the country’s most significant and stable external financial inflows.
In a detailed policy post shared on Saturday, July 20, 2026, Prof. Asare argued that while remittances play a critical role in supporting households, education and housing, their broader economic impact remains limited due to the lack of structured investment pathways.
He noted that there is no comprehensive data on final usage patterns, but said anecdotal evidence suggests most remittance inflows are directed toward consumption, family support and immediate needs.
However, he stressed that the issue is not the size of remittances, but how much of an already existing inflow can be redirected into productive investment.
Diaspora bonds as entry point
Prof. Kwaku Asare identified diaspora bonds as the most practical starting point, arguing that they would allow Ghanaians abroad to directly finance national infrastructure while earning returns.
“A Ghanaian in Bergen might invest $5,000 in a bond issued specifically for the diaspora. The funds could finance roads, energy projects, water systems, or other infrastructure, while the investor earns interest and receives the principal back at maturity,” he noted.
He referenced successful examples such as India and Israel, which have mobilised large sums through diaspora bonds, as well as Burkina Faso’s recent issuance.
Broader investment framework
Beyond sovereign bonds, he proposed a wider ecosystem of investment vehicles designed to mobilise diaspora inflows into key sectors of the economy.
These include SME investment funds that pool diaspora contributions into manufacturing, agribusiness, logistics and technology ventures.
He also proposed agricultural investment vehicles targeting irrigation, rice production, poultry farming and cocoa processing to shift remittances from consumption into productive assets.
In the housing sector, he recommended mortgage and housing finance funds to support large-scale affordable housing projects instead of fragmented individual construction.
Infrastructure funds, he added, could channel diaspora savings into solar power plants, water systems and industrial parks with long-term revenue potential.
He further suggested that banks introduce diaspora savings and investment accounts that automatically allocate a portion of remittances into Treasury securities or fixed-income instruments, while leaving a portion available for household needs.
Equity crowdfunding platforms, he said, could also allow diaspora investors to take small ownership stakes in Ghanaian businesses and help startups raise capital from large pools of small investors.
Shift from consumption to investment
Prof. Kwaku Asare stressed that the objective is not to replace remittances as a household safety net but to complement them with structured instruments that convert part of the inflows into jobs, productivity and sustainable growth.
He added that while patriotism may attract initial participation, long-term success would depend on trust, transparency, convenience, professionalism and credible returns.
He concluded that the policy direction being explored by the Bank of Ghana represents an important starting point but requires strong institutional design to succeed.
“The Governor has planted the right seed. We support him. Now let us build the vehicles, safeguards and incentives needed to transform diaspora inflows into jobs, enterprises, infrastructure and shared prosperity,” he wrote.
