Creating jobs in Africa with investments from the African diaspora in Europe

Context

Small-scale entrepreneurs in Africa find it challenging to establish and expand a business, as they frequently do not have the start-up capital. On top of this, there is often a lack of learning and training opportunities that meet their needs.

Investment from friends and family in the African diaspora in Europe could change this picture. The World Bank estimates that remittances from individuals in Europe to friends and family members in Africa amount to several billion euros a year – a valuable source of financial support. Until now, however, little of this money has gone directly to African micro and small enterprises (MSEs).

Objective

Start-up micro and small enterprises in the partner countries – Cameroon, Ethiopia, Ghana, Kenya, Togo and Tunisia – increase their revenue and create jobs.

Approach

The project supports African MSEs, for example in crafts, agriculture or retail, by making it easier for them to access finance to realise their business ideas. If friends or family members in the African diaspora in Europe invest in the business, the project provides a grant to top up the amount received by the entrepreneurs. The aim is to create incentives to convert the flows of money from Europe into long-term investments for African entrepreneurs. In addition, the MSEs supported by the project receive three one-on-one business coaching sessions free of charge.

The project operates through the online platform WIDU.africa, which is used by companies to register and identify themselves, describe their project and upload evidence of how they have invested the money.

Last update: April 2025