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Economic Brief - Diaspora Bonds and Securitization of Remittances for Africa’s Development - December 2010
Despite Africa’s widening financing gap to address its core development problems traditional sources of finance have proved to be inadequate in quantity and composition. Official Development Assistance (ODA) and Foreign Direct Investment (FDI), one of the major sources of external finance continued to decline as a share of GDP over the last decades (Figure 1). Certainly, there have been relative improvements in the flow of net FDI and ODA since 2000. However, both are still lower than their level in 1995. On the other hand, remittances by migrants from Africa increased steadily from 2.2% of GDP in 1995 to about 3% of GDP in 2008.