Ghana and Burkina Faso Launch Diaspora Bond Drives as Pan-African Investment Model Gains Traction

The Bank of Ghana is targeting billions of dollars in diaspora remittances for bonds, small businesses, and infrastructure projects, as policymakers move to transform overseas transfers into a long-term source of investment capital, foreign exchange inflows, and broader economic financing.

Central bank Governor Dr. Johnson Pandit Asiama said at a diaspora roundtable dubbed 'The Central Bank Bridge: Remit2Invest' in Washington in April that remittances rose to nearly $7.8 billion by the end of 2025 from about $4.6 billion in 2024. At roughly 6 percent of gross domestic product, those inflows now exceed foreign direct investment—underlining their increasing importance to Ghana's external position.

"Remittance inflows remain a cornerstone of Ghana's external sector," Dr. Asiama said. "At roughly six percent of GDP, remittances now exceed foreign direct investment, underscoring its systemic importance." The central bank said it is exploring diaspora bonds and structured investment vehicles with relevant state agencies, while promoting foreign-currency-denominated investment products through supervised financial institutions.

Burkina Faso launches $224 million "Patriotic Bond"

On May 6, 2026, Burkina Faso launched the first phase of its diaspora bond program, called the "Patriotic Bond," with a target of raising CFA125 billion ($224 million). The operation marks the first stage of a broader CFA240 billion program aimed at financing infrastructure and economic transformation projects. The subscription period runs from May 6 to June 6, 2026, with authorities seeking to mobilize resources from investors across the regional financial market.

Through the fundraising campaign, Burkinabe authorities aim to support several major projects. The financing should notably help establish a free agro-industrial zone intended to support local processing of raw materials, attract investment, and strengthen exports. The program also includes plans to build a fertilizer production plant, develop energy infrastructure including a hydroelectric power station, and finance waste recovery facilities, social housing, and road infrastructure projects. The government offers tax-free yields of up to 6.85 percent to attract investors.

Kenya eyes $500 million, but past performance raises questions

As Kenya hopes to raise up to $500 million from diaspora bonds by 2026, past performance of national diaspora bonds on the continent is causing concern among policy analysts. The African Financial Summit (AFIS) is exploring whether cross-border coordination to market Pan-African projects rather than national infrastructure projects could help states attract capital from a group that has not yet fully bought into African investing.

Diaspora bonds have in the last decade and a half captured the imagination as an innovative source of financing to exploit the $50 billion-plus in annual savings held by African citizens living overseas. Few have been issued, but their African track record has partly fallen short of expectations. Nigeria's 2017 $300 million diaspora bond was a notable exception that met and surpassed targets, which has led the West African state to consider issuing a $500 million diaspora bond targeting Nigerians and Nigerian descendants living in the US.

Nigeria's 2017 success offers a template

Structured as a global bond and listed in both the UK and the US, Nigeria's 2017 bond was regulated by leading authorities and marketed through established financial institutions. The $300 million issuance, offering a 5.625 percent return over five years, was oversubscribed, reaching 130 percent of its target. Crucially, Nigeria's approach addressed many of the shortcomings seen elsewhere: it broadened access, ensured regulatory credibility, and aligned pricing with market expectations. The result was that diaspora investors responded positively when the instrument combined emotional connection with financial viability.

Nigeria's experience sharply differs from earlier African experiences in diaspora bond issuance, suggesting that careful planning, securing regulatory approval in key high-income jurisdictions in which large Nigerian migrant populations live, and competitive pricing may all have influenced the bonds' success.

Ghana's 2008 attempt: narrow eligibility limits uptake

In 2008, Ghana issued a five-year bond targeting its diaspora, offering a 7.875 percent return. The underlying issue was structural. By restricting eligibility strictly to Ghanaian citizens, the bond excluded a broader class of diaspora-linked investors. These included dual nationals, second-generation migrants, and non-citizen affiliates with strong ties to the country. In effect, Ghana marketed to the diaspora but did not fully open the door to them.

Ethiopia and Kenya: ambition undermined by trust and design

Ethiopia stands as Africa's earliest and most ambitious adopter of diaspora bonds. Beginning in 2008, the country issued bonds to finance what would later become the Grand Ethiopian Renaissance Dam, a flagship infrastructure project symbolizing national pride. The initiative evolved over time, introducing flexible features such as multi-currency denominations (dollars, euros, pounds, and local currency), varying maturities, and interest rates tied to LIBOR. While thousands of diaspora investors participated, the overall scale remained modest relative to the project's financing needs.

In 2011, Kenya issued a 12-year infrastructure bond with a diaspora component. Offering a 12 percent return and aimed at raising KES20 billion, the bond achieved a 70 percent subscription rate, one of the strongest performances on the continent at the time. However, like Ghana's earlier attempt, Kenya imposed nationality restrictions, limiting participation to Kenyan citizens. High minimum investment thresholds further narrowed the investor base.

The Pan-African alternative: AfCFTA-linked infrastructure bonds

Distrust in the issuing government and perceived risks of investing in a single African nation have contributed to the limited success of diaspora bonds. Investors are wary that a poor economic outlook for an issuing African country will result in a poor return on investment. Patriotic affinity or kinship with Africa will never be enough to attract investors. The business case for infrastructure bonds must be compelling.

With the African Continental Free Trade Area (AfCFTA) forecast to uplift African GDP 4.2 percent by 2035, according to Fitch, cross-border infrastructure projects packaged as capitalizing on a lucrative pan-African opportunity may be a route to inspire investor confidence. Multi-country involvement on cross-border transport, logistics, energy, and digital infrastructure projects could give diaspora investors assurance that they are buying into quality assets, particularly if backed by multi-state guarantees.

AFIS explores whether cross-border infrastructure bonds—strategically marketed to a broader, data-driven diaspora base—could attract sustained investment, where national pitches have faltered. The approach aims to finance Africa's $411 billion deficit in transport infrastructure and equipment for intra-continental trade.

US legislation supports diaspora investment vehicles

In the United States, the African Diaspora Investment and Development Act (AIDA) was introduced in Congress in July 2025 to establish a comprehensive strategy to support African and Caribbean diaspora engagement in development through reduced remittance costs, investment incentives, and institutional partnerships. The legislation authorizes the Secretary of the Treasury and the United States International Development Finance Corporation to provide support for the issuance of diaspora bonds by African and Caribbean nations through credit enhancement, technical assistance, and co-marketing with diaspora investment vehicles.

The African diaspora contributes $100 billion annually in remittances. This record demonstrates the urgency to transform financial and intellectual capital into strategic investments in science, technology, education, and AI-enabled solutions, according to the African Diaspora Network, which hosts the annual African Diaspora Investment Symposium.

What comes next

Across these experiences, a consistent pattern emerges. Diaspora bonds succeed not simply because they appeal to national pride, but because they function as competitive, trustworthy financial instruments. According to the World Bank, Africa's untapped diaspora capital remains vast, but unlocking it requires a shift in approach. Key lessons include expanding eligibility beyond strict citizenship, offering flexible and market-driven returns, ensuring tradability, and strengthening transparency and governance.

Remittances already play a vital role in Ghana's and other African economies, but largely fuel consumption rather than long-term investment. The Bank of Ghana Governor's vision seeks to change that dynamic by transforming diaspora funds into a sustainable source of development finance. Whether national bonds or Pan-African infrastructure vehicles ultimately prevail, the next 12 months will test whether African governments can convert patriotic sentiment into patient capital.

Reporting drawn from The Business & Financial Times Ghana, Ecofin Agency, The Business & Financial Times Ghana, CediRates, African Financial Summit, Congresswoman Cherfilus-McCormick Press Release.