Assessment, African Diaspora Marketplace i 
 
ASSESSMENT & LESSONS LEARNED FROM
AFRICAN DIASPORA 
MARKETPLACE 
November 4, 2011 
This publication was produced for review by the Office of the United States Agency for International Development. 
It was prepared by Manuel Orozco and Mariellen Jewers, Inter-American Dialogue 
Assessment, African Diaspora Marketplace ii
Prepared for the United States Agency for International Development, USAID Contract 
Number AID-EEM-A-00-06-00001.
Implemented by A + Government Solutions, 
1900 N Beauregard St # 105 Alexandria, VA 22311-1736 
Phone: +1 (703) 379-7772 
Fax: +1 (703) 379-7807 
www.aplusgov.com
Assessment, African Diaspora Marketplace iii
FINAL REPORT 
ASSESSMENT & LESSONS LEARNED FROM 
AFRICAN DIASPORA 
MARKETPLACE 
November 2011 
DISCLAIMER 
The authors' views expressed in this publication do not necessarily reflect the views of the 
United States Agency for International Development or the United States Government. 
Assessment, African Diaspora Marketplace iv
CONTENTS 
EXECUTIVE SUMMARY .................................................................................................. 1
1. Development and the Diaspora: The African Diaspora Marketplace ..................... 1
2. Evaluation Framework .................................................................................................. 7
3. Impact on Local Development ...................................................................................10
4. Grantees’ Business Performance...............................................................................14
5. Design & Implementation ...........................................................................................17
6. Tentative Conclusions & Preliminary Recommendations ......................................19
Assessment, African Diaspora Marketplace 1 
EXECUTIVE SUMMARY
This report analyzes the impact of the African Diaspora Marketplace (ADM), a pilot business 
plan competition and a private-public partnership between United States Agency for 
International Development (USAID), Western Union and the Western Union Foundation. This 
study assesses ADM‘s impact on local development and grantees' business performance. 
Overall, we find that diaspora partnership initiatives are important mechanisms to engage in 
local business development. ADM‘s impact, however, is limited due to factors internal to the 
design and implementation, and external to the ADM, such as local infrastructure or limited 
business experience by grantors. The ADM initiative produced many positive results. Several of 
the businesses brought innovative products or services to local markets. In the long term, these 
will have a diffusion effect on other businesses. The ADM‘s unique model of partnership with 
diasporas strengthened transnational family enterprises, and diaspora partners were major 
stakeholders and decision makers in all the businesses. Moreover, at least four out of fourteen 
ADM funded businesses promise to be sustainable in the short-term, and three more have solid 
prospects to succeed in the future. 
This study made an effort to understand the extent to which the ADM process, the diaspora 
engagement, and the financing itself influenced businesses‘ success and impacted local 
development. This evaluation is based on interviews with stakeholders, and fieldwork carried 
out in August 2011 in Ghana, Ethiopia, Kenya, Nigeria, and Uganda as well as other data 
collected. 
This report is organized into six sections. Section one describes the theoretical context for the 
ADM and presents a summary of our evaluation findings. The second section outlines our 
evaluation framework. The third reviews the grantees‘ impact on local development. Section 
four examines ADM grantees' business performance, specifically their potential for sustainability 
and growth. Section five presents our assessment of the ADM design and implementation. The 
final section draws tentative conclusions on lessons learned and basic recommendations for 
future endeavors. 
1. Development and the Diaspora:
The African Diaspora Marketplace
Diasporas are increasingly seeking to engage in development in their home country and have 
initiatives and resources to do so. Their efforts demonstrate how they view their role in the 
development process of their home countries. Moreover, in that effort, they seek partners to 
share the outcomes from these ventures. The African Diaspora Marketplace (ADM) is an 
Assessment, African Diaspora Marketplace 2 
outcome of United States Agency for International Development‘s (USAID) realization of a 
diaspora driven demand to invest in home country business projects. The results of the ADM 
pilot are mixed, but promising. This section discusses first this trend in transnational 
engagement and the evolution of diaspora investment partnerships. Next, we introduce the 
ADM as an innovative approach to encouraging these partnerships. This section also discusses
some unique features of diaspora engagement that ADM has fostered and a general description 
of the ADM grantees‘ challenges and achievements to date. 
DIASPORAS AND DEVELOPMENT 
The economic activities performed by migrants vis-a-vis their home country are transnational 
by default because they include local and trans-border interactions. Those activities, such as 
remitting or investing, are often challenged by nation-state bounded views of development. 
However, it is important to note that the global nature of social, economic and political 
interactions is increasingly demanding normative and policy changes to benefit people. 
Specifically, it is possible to see a tension between the intermestic and transnational nature of 
human relations and nation-state bound rules of conduct.1
 Seyla Benhabib2
, among many 
scholars from varying intellectual backgrounds, rightly argues that: 
―…we are at a point in the political evolution of human communities when the unitary 
model of citizenship that bundled together residency on a single territory with 
subjection to a common bureaucratic administration representing a people perceived to 
be a more or less cohesive entity is at an end. We are facing today the ‗disaggregation of 
citizenship‘.‖ 
Benhabib‘s assessment is clearly visible in the context of international migration and the ensuing 
processes that emerge from the economic and social link forged by migrants, their families, and 
the institutions (public and private) with which they interact. For one, globalization has 
increased a demand for foreign labor. Large and small businesses have increased their demand 
for foreign labor in order to raise global productivity and competitiveness. Moreover, the 
economic activities among migrants and their families have had direct implications on economic 
growth and development in a global context. 
Despite these patterns, a critical paradox is apparent: international cooperation for economic 
development is circumscribed within the territorial lines of nation-states. From a normative and 
policy standpoint, it is imperative to engage in development in a de-territorialized manner that 
allows for a more fluid fulfillment of the human condition and that includes migrants and/or 
diasporas in the development process. 
Migrants' engagement in a transnational lifestyle, characterized by both opportunities and 
hardships, features a paradox of distance and closeness, and often defines migrants as diasporas. 
In fact, activities—such as sending money home, investing in the home country—are shaped by 
a diaspora identity seeking to materialize a person‘s sense of belonging. 
 
1
 Sassen, Saskia, Territory, Authority, Rights: From Medieval to Global Assemblages (2006); Losing Control? 
Sovereignty in an Age of Globalization (1996). 
2
 Benhabib, Seyla. Another Cosmopolitanism, Oxford University Press, 2008. 
Assessment, African Diaspora Marketplace 3 
Diasporas have been defined as: 
―…sociopolitical formation[s], created as a result of either voluntary or forced 
migration, whose members regard themselves as of the same ethno-national 
origin and who permanently reside as minorities in one or several host 
countries. Members of such entities maintain regular or occasional contacts with 
what they regard as their homeland and with individuals and groups of the same 
background residing in other host countries.‖3
 
Diasporas thus define themselves through relationships with the homeland, international 
entities, and host-country governments and societies, thereby influencing various dynamics, 
including development. One key consideration of these relationships is that they form, in part, 
as a response to changes in the composition of the international system (be it the global 
economy or the international political landscape) and to development or under-development. 
People leave their countries because of social, economic and political conditions there, yet they 
continue to engage with their homelands at various levels. Such engagement stretches the idea 
and practice of development beyond territorial boundaries. 
Because of these processes, taking diasporas‘ and migrants‘ economic activities into account 
when exploring development policy is not only justified, but also necessary. Today diasporas are 
subjects and objects of social change. Considering diasporas in a development framework is 
essential to understanding the context in which they exist, that is their transnational and de￾territorialized space. From that point on, the economic activities of migrants can transform the 
material base of migrants, their relatives, and their societies. 
A point of departure to this imperative is the identification of partnerships that can bind 
individuals and institutions to implement policy pathways inclusive of a range of players, such as 
migrants, civil society, policy makers, development practitioners, or businesses. Diasporas are 
increasingly motivated to promote development in their home country on local projects to 
impact their communities. Diaspora investment partnerships, which are financing initiatives 
undertaken by migrants and another entity from either the private or public sector to support business 
in the migrants’ home community, represent an innovative approach to development and 
engagement. 
ABOUT THE AFRICAN DIASPORA MARKETPLACE 
ADM is a pioneering activity developed by USAID to engage diaspora in the development of 
their country of origin. It capitalizes on this growing trend in diaspora investment partnerships. 
The ADM was conceived, designed and implemented on the premise that it would encourage 
and leverage productive diaspora investment in home countries, provide a stimulus for local 
economic growth and job creation, spur business innovation and achieve social development 
objectives. To date, it is also the most visible foray USAID has made in this new practice of 
―Diaspora Engagement‖. The ADM is now in its final phase; all appropriate grant disbursements 
have been made and most of the grant agreements are nearing completion. 
 
3
 Sheffer, Gabriel, Diaspora Politics: At Home Abroad, 2006, pp.10-11.
Assessment, African Diaspora Marketplace 4 
ADM was a private-public partnership between USAID, Western Union and the Western 
Union Foundation. Western Union has significant presence in global diaspora communities that 
USAID operates in, and its engagement with these communities created a natural partnership 
possibility between the parties. ADM was jointly funded by Western Union, the Western Union 
Foundation and USAID. It was implemented by AED, Washington DC, under USAID‘s FIELD￾LWA Cooperative Agreement funding mechanism. However, Western Union, USAID and 
Academy for Educational Development (AED) were equally engaged in all aspects of the ADM. 
George Washington University, though not a funding or implementing partner, was granted 
access to all relevant ADM information necessary to conduct academic research on ADM and 
on the applicants and finalists. 
When first launched in mid-2009, ADM attracted the submission of 733 concept notes from the 
Sub-Saharan African Diaspora based in the US to develop businesses, or grow existing 
businesses, located in 19 Sub-Saharan African countries and 15 economic sectors. Following 
multiple rounds of screening by AED, 58 finalists were selected and invited to submit a full 
business plan and were therefore retained for the last stage of the competition. A second 
selection committee of 16 volunteers was assembled by AED and tasked with the final 
selection. 
In January 2010, a ―Grand Event‖ was held in AED headquarters in Washington DC to select 
the competition winners among the 58 finalists. This final selection resulted in the award of 
matching grants to 14 businesses. ADM program winners received a grant matching their own 
(financial or in-kind) contributions. Matching grants were offered in the range of $50,000 to 
$100,000. These businesses are located in 7 Sub-Saharan African countries and cover 8 
economic sectors. 
The following are the full names of the businesses that were awarded; those with asterisks 
were not evaluated here. We also include in parentheses the shortened names as they will 
appear in the rest of the report. These were: Global Telecommunications, PLC (Global 
Tracking), Student Card Limited (Student Card), Sproxil, Inc (Sproxil), Ansa Systems Limited 
(Ansa), Tek Consults [U] Ltd. (Solar Ovens), Aceritas Ghana Ltd (Aceritas), AMAD Metal 
Manufacturing PLC (AMAD Metal), MicroClinics Limited, (MicroClinics), E&M Capital Tek 
Corporation (Uza-Mazao), AACE Foods (AACE), EarthWise Ventures, Inc. (EarthWise Ferries), 
TAF PLC (TAF BioTechnology), AADT Consultants LLC.*, and Palm Fruit Processing Company 
Limited*. The fourteen businesses evaluated are alternatively referred to as a group as 
―projects‖, ―grantees‖ and ―businesses‖ and ―ADM businesses‖ throughout the report. 
A UNIQUE OUTCOME: TRANSNATIONAL FAMILY PARTNERSHIPS 
These diaspora businesses are characterized by individuals with strong interest to connect with 
their homeland and a purpose to invest in their home country. One unique contribution of this 
initiative was to promote transnational family partnerships. Four out of the twelve projects 
evaluated were initiatives among family members living in the US and the homeland. 
Assessment, African Diaspora Marketplace 5 
Table 1: Transnational Family Businesses within ADM 
Project Transnational
Family Ties Note
AACE (Nigeria) √ Ndidi Nwuneli and Mezuo Nwuneli are married returned 
migrants.
Aceritas (Ghana) √
Investment partnership among three brothers living in Ghana, 
Netherlands and the U.S.
Ansa (Ghana) √
Paul Ansah (Diaspora) is the son of Ebenezer Ansah (Ghana 
partner).
Global Tracking (Ethiopia) √ Zelalem Dagne (Diaspora) runs the business with his sister 
Elizabeth Dagne (in Ethiopia). 
TAF BioTechnology (Ethiopia) √
Michael Asamere (Diaspora) is the son of Tsega Asamere 
(Ethiopia partner). The product funded by ADM was managed 
by Michael and his sisters (in Ethiopia). 
AMAD Metal (Ethiopia) x
Diaspora partnered with a local business entrepreneur, which 
as not a family member, but known to the diaspora partner.
EarthWise Ferries (Uganda) x
MicroClinics (Ghana) x
Solar Ovens (Uganda) x
Sproxil (Nigeria) x
Student Card (Ghana) x
Uza-Mazao (Kenya) x
Note: AADT Consultants (Liberia), Palm Fruit Processing (Sierra Leone), were not evaluated 
due to logistical constraints. 
GENERAL RESULTS OF THE AFRICAN DIASPORA MARKETPLACE 
Overall, the ADM exhibits partial success. The ADM projects have yet to achieve their goals 
and expectations. The table below describes the projects and illustrates the challenges and 
achievements to date of these grantees. Overall, most of the businesses were struggling to 
accomplish their goals, both programmatically and commercially. Some, such as AACE, are 
substantially promising and valuable as models of investment partnership. Others, such as 
MicroClinics or Student Card, are the type that could have been avoided from the outset, had 
there been a more robust design and monitoring system in place. As the table shows, not all 
projects have been entirely successful and many are ‗works in progress‘.
Table 2: Business Description, Main Challenges and Achievements to Date 
Project Description Challenges and Achievements To Date
AACE (Nigeria)
A food processing company that produces 
preserved fruit and vegetable products 
(such as jams and spreads). 
AACE has developed organically increasing 
production, expanding its distribution network 
and line of foods. They are growing and 
generating revenue.
Assessment, African Diaspora Marketplace 6 
Aceritas 
(Ghana)
Aceritas is a commercial goat farm in 
Ghana, which sells goats to other farmers. 
It raises Boer goats, a South African variety 
of goats, for Ghana‘s domestic market. 
Aceritas is moving forward with the breeding 
process but at a slow pace. Their measures to 
accelerate the development of the business are 
working (buy goats from Niger). In turn they will 
be able to grow in the near future.
AMAD Metal 
(Ethiopia)
A start-up business with a goal to 
manufacture a variety of metal products, 
including safety deposit boxes, furniture 
and electric switch-boxes.
AMAD Metal‘s management encountered a 
variety of delays and pitfalls in building its factory 
from scratch on land granted to them from the 
Ethiopian government. Problems included 
contractor delays, inflation and price hikes in 
cement. AMAD Metal‘s most pressing problem is 
its inability to access additional financing to 
complete the factory and begin production.
Ansa (Ghana) 
Ansa is an electric company that supplies 
power generators and regulators. It 
requested an ADM grant to train its 
employees to sell and maintain more 
technologically advanced generators. 
Ansa has been able to increase services thanks to 
the training of technicians, which allow them to 
improve their services. Their main need is to 
train technicians in more advanced power 
systems of an industrial size.
EarthWise 
Ferries 
(Uganda)
Built an adapted catamaran with engines 
that run on sunflower oil, to be a safe, fast 
and environmentally-friendly passenger 
ferry on Lake Victoria. EarthWise Ferries 
has permits to dock in Uganda, Tanzania 
and Kenya.
EarthWise Ferries has launched the first modern, 
safe, passenger ferry on Lake Victoria. Its use of 
advance technology limits their ability to locally 
source materials and labor. Because of their use 
of biofuel, EarthWise Ferries will have to charge 
higher fees to compensate for faster 
deterioration of their engines. Moving upmarket 
will diminish its social impact, as fewer local small 
business owners will probably be able to afford 
the ferry.
Global Tracking 
(Ethiopia)
Installs and maintains GPS devices for 
commercial vehicles. Global Tracking 
monitors driver behavior in real time, 
quality controls the information received 
from the devices and maintains the devices 
themselves.
Generates enough revenues to cover operational 
costs. However, it incurred high and unexpected 
customs fees on its devices, which essentially 
cancelled their profit on the devices.
MicroClinics 
(Ghana) A franchising model for rural health clinics. 
Prior to the grant MicroClinics had one clinic, it
promised to establish more clinics during the 
grant period, and faced delays that could have 
been foreseen. It failed to identify a franchisee,
and did not comply with the grant agreement‘s 
commitments.
Solar Ovens 
(Uganda)
Market and manufacture ―Global Sun 
Ovens‖ in Uganda. Solar Ovens have been 
investigating and marketing ―Global Sun 
Ovens‖ for five years, but the ADM grant 
allowed them to actually acquire oven 
parts and rent a factory location in Uganda.
The ADM disbursement was delayed, and did not 
arrive until the rainy season in Uganda. The ovens 
do not function at their best in the wet season, 
making them harder to market and sell in the wet 
season. There were difficulties in importing the 
oven parts and complications with the land 
granted to Solar Ovens by the government. A 
pending challenge for Solar Ovens is making the 
ovens affordable to their customer base. Their 
two options: mass production and establishing 
payment plans are not secured.
Assessment, African Diaspora Marketplace 7 
Sproxil 
(Nigeria)
Generated a coding system and provides 
pharmaceutical companies with scratch-off 
labels of authenticity for products sold in 
Nigeria. Upon purchase, customers send 
Sproxil a text message with the drug code 
from the label, and Sproxil responds 
validating the authenticity of the 
medication and its market price. 
Sproxil‘s coding system is working successfully 
and is being recognized among pharmaceutical 
companies. They have opened offices in Kenya 
and in India.
Student Card 
(Ghana)
A personal identification card for students 
and related software for students to 
facilitate electronic financial transactions 
for school fees and Ghana‘s school feeding 
program. 
The proposal was incomplete and the grantee did 
not demonstrate minimum criteria needed to 
start a card business, including cash liquidity, AML 
rules, marketing strategy or partners in place. The 
project has not yet completed its initial stage of 
operations and is struggling to find partners or 
additional funding.
TAF 
BioTechnology 
(Ethiopia)
It solicited funds from ADM to branch into 
a new business venture, which was the 
production of plant clones for commercial 
purposes.
TAF Biotechnology‘s work plan was not clear in 
its proposal for the ADM grant. It missed its 
milestones due to delays in constructing the 
laboratory and other facilities for growing and 
multiplying plant tissue for clones. In August 2011 
it was told that its building would be demolished 
for a state infrastructure project.
Uza-Mazao 
(Kenya)
A digital marketplace for farmers and 
supermarkets, hotels and others that 
matches sellers and buyers of agricultural 
products in Kenya using cell phone text 
messages and internet. 
Uza-Mazao has focused primarily on engaging 
farmers to register and use its services, but has 
not equally engaged buyers (such as hotels, 
supermarkets and others) to purchase the goods 
that farmers post on the digital marketplace. 
Without buyers, Uza-Mazao will not function.
Note: AADT Consultants (Liberia), Palm Fruit Processing (Sierra Leone), were not evaluated due to logistical 
constraints.
2. EVALUATION FRAMEWORK 
This section discusses our methodological framework for evaluating the ADM pilot. In order to 
learn about the success of diaspora investment partnerships, like the ADM, it is important to 
explore whether these partnerships fulfill their proposed goals, enhance business and 
entrepreneurship and promote development. Our evaluation framework is composed of three 
prongs: (1) impact on local development; (2) grantees‘ business performance; and, (3) the ADM 
design & implementation. In each prong, which has several associated indicators, we try to 
identify the value-added of the role of the diaspora partnership and the ADM investment in the 
businesses. 
Because of the structural differences between start-ups and continuing businesses, assessing 
them effectively requires that the evaluation be made in relationship to the short-term goals 
achieved and the investment‘s potential returns. Therefore, when appropriate, we separate 
Assessment, African Diaspora Marketplace 8 
indicators on the basis of whether the business is ongoing or a start-up. (Please see Appendix 2 
for data collection and scoring process). 
IMPACT ON LOCAL DEVELOPMENT 
The ADM has the potential to connect diaspora to other economic opportunities and to 
identify and support diaspora as agents of change through entrepreneurship in the diasporas‘
homelands. First, whether these projects fulfill their goals to promote development depends on 
how well these projects match local needs. In this context, evaluating the local development 
impact of the partnership on the community is important. Local development impact is felt 
under various circumstances, including the capacity of the business to create ownership in the 
community, as well as the correspondence between local needs and the intended purpose of 
the partnership. Also critical is the sustainability of these ventures and their capacity to be 
replicated in other environments. 
GRANTEES’ BUSINESS PERFORMANCE 
Diaspora investments can promote formal Small and Medium Enterprise (SME) creation 
through several channels: (i) revenue generation, (ii) integration into the value-chain, (iii) 
business formalization, and (iv) access to finance. Evaluating the grantees' business performance 
vis-a-vis the determinants of success is central to the way in which these partnerships 
contributed to improve the business environment. 
The ADM project contributed a unique opportunity for innovation in various markets. Given 
the African context where small business development is still a relatively weak sector, the 
initiative is essentially needed. More importantly the model of partnership with diasporas is also 
innovative in that it strengthens transnational family enterprises. 
Most of the businesses would have not achieved their current position had they not received 
ADM financing. However, because the businesses request for funding was not commensurable 
to their needs, many underperformed relative to the ADM expectations (in milestones and 
outcome indicators). Thus, the facility did not duplicate funding, but, the grant awards were not 
sufficient to cover the operations many needed to generate revenue. 
DESIGN & IMPLEMENTATION 
Finally, these partnerships typically promise to programmatically help strengthen local 
businesses through increased demand for jobs, increases in locally manufactured materials, or 
improvements in the business infrastructure. Programmatically, these enterprises may promise 
to carryout activities that may exceed their own capacities. Thus, it is important to analyze the 
correspondence between the design and implementation of these projects, and the final project 
outcomes. 
Design includes selection of grantees, clarity of program vision, roles, responsibilities and work 
plan, determination of outcome indicators and milestones, development of grant agreements, 
and communication among partners. Implementation measured the extent to which expected 
results matched ADM‘s proposed outcomes. The ADM‘s expected outcome was, in essence, 
Assessment, African Diaspora Marketplace 9 
one of two tangible products: a new operating businesses or the provision of a new product or 
service within a continuing business. Here we add to comparing actual outcomes versus 
expected outcomes, and consider whether the initiative is implemented smoothly, 
transparently, and in such a way that strengthened partnership among the various actors and 
increased the likelihood of similar funding mechanisms in the future. 
Design and implementation aspects have cumulative impacts on the program‘s success. ADM‘s 
pilot design showed some weaknesses that can be prevented in the future. In particular, poorly 
defined measurements of performance in milestones and outcome indicators hindered effective 
monitoring and evaluation of the businesses. Problems in implementation results were inherited 
from the constraints found in the design. 
SUMMARY OF SCORES BY EVALUATION PRONG 
Below is a synthetic table of the scores for each business in the three prongs of the evaluation: 
(1) impact on local development; (2) grantees‘ business performance; and, (3) the ADM design 
& implementation. In the following sections—three (Impact on Local Development), four 
(Grantees' Business Performance) and five (Design & Implementation)—we describe the results 
of each prong in more detail. 
Table 3: Synthesis of Scores, by Business, per Evaluation Prong 
Project
Impact on 
Local 
Development 
Grantees' 
Business 
Performance 
Design & 
Implementation
AACE (Nigeria) 84% 92% 74%
Aceritas (Ghana) 72% 52% 65%
AMAD Metal (Ethiopia) 72% 48% 50%
Ansa (Ghana) 80% 80% 81%
Uza-Mazao (Kenya) 72% 68% 66%
EarthWise Ferries (Uganda) 92% 68% 56%
Global Tracking (Ethiopia) 68% 80% 69%
MicroClinics (Ghana) 64% 48% 46%
Sproxil (Nigeria) 84% 80% 76%
Student Card (Ghana) 72% 36% 33%
TAF BioTechnology (Ethiopia) 76% 36% 45%
Solar Ovens (Uganda) 60% 48% 52%
Note: Each component was scored from a scale of 1-5, with 5 being the highest possible score. 
AADT Consultants (Liberia), Palm Fruit Processing (Sierra Leone), were not evaluated due to 
logistical constraints. 
Assessment, African Diaspora Marketplace 10 
3. IMPACT ON LOCAL 
DEVELOPMENT 
The impact of a local development project depends on whether they change the quality of life, 
improve material circumstances and increase upward mobility of people in the community and 
society, that is, whether they create development. ADM supported businesses in various 
African nations, with this in mind. We present indicators for assessing the extent to which the 
outcomes of projects in, through, and by, the diaspora enhanced development.4
 Research has 
found that, for a development project to be successful, it must meet the following criteria: 
ownership (local control and participation), commensurability (i.e. correspondence to 
community needs), sustainability, and replicability in other contexts.5
 We also examine how the 
innovative natures of the ADM businesses promise to impact local development. 
Table 4: Framework for measuring the development impact of diaspora projects 
Ownership Commensurability Sustainability Replicability
Community 
members participate 
in decision making
Community 
members participate 
in implementation
Community 
members have 
control of project 
after completion
Project meets basic needs
Needs met are a 
development priority
Implementation occurs in 
association or coordination 
with other institutions
Project enables 
development goals
Does not 
constitute a 
burden or entail 
added costs
Has a long life 
cycle
Resources for the 
project are easily 
available in other 
communities
Institutional environment 
facilitating 
implementation is 
available in other 
communities
The projects under the AMD show diversity among the beneficiary businesses‘ impact. On 
balance, we find that the businesses brought innovative practices and technologies to local 
communities that could be replicated in other countries and regions provided that there is 
better financial and business planning presence and a stronger correspondence between the 
local needs and the investor‘s interests. Though the impact of these businesses on the local 
economy may occur in the long-term, in the short term only three or four succeeded. 
 
4
Jenny Robinson (2002) wrote about the relationship between diasporas and development as being three-pronged: (1) development in the 
diaspora, (2) development through the diaspora, and (3) development by the diaspora.
5 Manuel Orozco and Kate Welle, “Hometown Associations and Development: Ownership, Correspondence, Sustainability and Replicability” 
(2006). Web Anthology on Migrant Remittances and Development: Research Perspectives. March, 2009. 
Assessment, African Diaspora Marketplace 11 
OWNERSHIP 
When considering a diaspora‘s contribution to development, local ownership of the endeavor is 
essential, and providing tools for that ownership is essential. Although ADM businesses are 
diaspora-led, it is important to consider whether they also provide a means to transmit 
ownership or control of the business (in part) to the local partners, to legitimate them as their 
own. Ownership of a project can occur through participation in the decision-making and 
implementation process or by stimulating the local economy. The case of ADM is particularly 
ownership driven because the partnership included a local partner engaged with the diaspora 
investor. 
A typical measure of a successful development project is the generation of the communities‘ 
involvement in the business venture. A high degree of local community involvement in a 
project‘s design and implementation and use can indicate the initiative‘s long-term development 
impact because the group effort can increase community ties and trust. Traditional local 
development projects such as improvements made to the town plaza or extension of water 
services, which are able to demonstrate some level of community consensus and involvement 
can be considered to have generated more social capital in the process and therefore create a 
more successful development project. The beneficiary businesses within the ADM project are 
distinct from traditional development projects because of the type of diaspora involvement, and 
the costs and benefits of running the business have an inherent level of exclusivity. What‘s 
more, businesses which require consensus among too many stakeholders may be less able to 
respond quickly to market shifts. 
While social capital generation within the community was limited for most of the projects, 
social capital generation between the businesses and the migrant community abroad was more 
successful. None of the projects included the community in the selection or implementation of 
the business venture. Surprisingly, the Kenya business, whose Africa-based partner has limited 
input in the business, managed to connect with local agricultural specialists and leverage their 
community ties to get important input on the product, and make adjustments. Given the design 
of the project, the businesses were not well-placed to increase social capital broadly speaking, 
but several did manage to generate important outcomes in this regard. 
In addition to having a local partner as owner of the entrepreneurship, several of the businesses 
exhibited fostered local ownership in the businesses. For example, the devices that Global 
Tracking offers (GPS tracking of vehicles) allow management to be more efficient of its staff by 
improving monitoring. In doing so, the managers have greater control over how the vehicles 
are handled, and care of merchandise. Additionally, the monitoring helps in lowering costs, 
increasing fuel efficiency and tracking timelines of deliveries. Ansa also provides the means to 
local businesses to improve the reliability of electricity and thus strengthen their control over 
their production. 
COMMENSURABILITY 
The degree to which a project‘s goal corresponds with the community‘s true needs is central to 
its ultimate impact on development. The more a project reflects basic community needs, the 
greater its contribution to development. Diaspora awareness of the home country‘s national 
Assessment, African Diaspora Marketplace 12 
and local development agendas is an important step to help achieve projects‘ correspondence 
with development needs. 
For most, the ADM has allowed businesses to introduce improved production methods to their 
local community. The metal company in Ethiopia will introduce new safety regulations and 
production methods. EarthWise Ferries has implemented safety regulations for workers and 
boat passengers. Several businesses will help local markets more broadly – both the Kenyan 
mobile business and the Ethiopian biotech company intend to improve agriculture production. 
Some businesses will demand locally produced materials, primarily raw materials such as sheet 
metal and sunflower oil. At present, most source their primary materials from outside the local 
community, but several intend to shift their sources to local suppliers once they are more 
established. A notable example is the EarthWise Ferries, which expects to source its fuel from 
local farmers. EarthWise Ferries‘ renovation of Lake Victoria‘s ferry route and maps are more 
examples of how the businesses are responding to local infrastructure needs. Examples such as 
these demonstrate the ways in which the ADM investment goes beyond strengthening 
businesses alone by also contributing to strengthen the demand for locally produced goods. 
Most of the grantees‘ activities also correspond to local needs due to their innovative nature, 
though some are introducing more appropriate technology than others. Some, like Student 
Card is yet to match technology offer with the needs of the population. Global Tracking is a 
kind of business that meet the needs and demands of the local businesses and country road 
management. According to the Ethiopian government, road traffic injury is a major problem of 
public health. In fact, the World Health Organization places Ethiopia with the highest rate of 
fatalities per vehicle in the world. Because Global Tracking uses these GPS devices in 
commercial vehicles and monitors the driver‘s behavior, companies improve communication 
with their drivers thus helping prevent accidents. MicroClinics is another example of a project 
whose concept guarantees access to health through its centers. Had the business set its clinics 
in place, the impact would have been greater. As of now the only operating clinic offers much 
needed support to the community. 
SUSTAINABILITY 
Another important factor enabling the ADM projects‘ contribution to local development is the 
businesses‘ sustainability. A business is sustainable when it delivers the means to enable people 
to improve their quality of life and material circumstances. Sustainability also requires that the 
investment yield a long-lasting impact that does not burden the community or its future 
generations. By its nature, measuring the sustainability of a business requires time to make 
assessments. When diaspora-led projects rely on partnerships to provide public or private 
funding, one way to help ensure sustainability over time is to assess how the business will 
continue without such outside funding. 
Four businesses promise to be sustainable in the short term, and three more to succeed in the 
near future. Sproxil, Ansa, AACE and Global Tracking are generating revenues and should be 
able to grow on their own. While Global Tracking has not been able to generate a profit, it is 
currently covering its operational costs and shows possibilities to increase its number of clients. 
However, to be sustainable, the company believes it will need more capital in the near future 
Assessment, African Diaspora Marketplace 13 
(e.g. financing) to restock and increase number of devices. One of Global Tracking‘s largest 
contracts is with Coca Cola. More business growth is possible since the local market has a 
tangible demand of this type of service for the long term. The potential target clients for the 
business are the enterprises involved in the transportation sector. In the last years, transport 
and communications amount to about 7% of the Ethiopian GDP, officials estimate. Sproxil‘s 
operations are already generating revenue and selling their systems to local clients in Nigeria. 
As the company expands its product to other pharmaceutical companies, the business will 
develop an organic growth. AACE also have been able to reach a point of sustainability. Their 
distribution network has provided enough clients to operate in scale and keep sustained sales. 
REPLICABILITY 
Finally, businesses can make a successful contribution to development when their attributes and 
functions may be replicated with ease and do not depend on the local or unique circumstances 
of a community nor on a unique situation for the institutional donor. The replicability of the 
ADM businesses might allow for the establishment of regional strategies focusing on achieving a 
development goal beyond the effects on a single community. 
The innovative nature of these businesses renders them replicable. Even projects that failed due 
to difficulties caused by the grantees—in the implementation or to lack of clarity on how to run 
a company—exhibit features that can be implemented elsewhere. 
The table below shows the scoring performance of each project in relationship to their impact 
on development. 
Table 5: Scoring of Projects by Impact on Local Development 
Project Impact on 
Development Sustainability Ownership
Linked to 
Local 
Community
Innovation Replicability
EarthWise Ferries 
(Uganda) 92% 5 5 3 5 5
AACE (Nigeria) 84% 4 5 4 3 5
Sproxil (Nigeria) 84% 4 4 3 5 5
Ansa (Ghana) 80% 4 5 2 4 5
TAF BioTechnology
(Ethiopia) 76% 2 5 2 5 5
Aceritas (Ghana) 72% 1 5 4 4 4
AMAD Metal(Ethiopia) 72% 1 5 2 5 5
Uza-Mazao (Kenya) 72% 4 1 3 5 5
Student Card (Ghana) 72% 1 4 3 5 5
Global Tracking
(Ethiopia) 68% 2 2 3 5 5
MicroClinics (Ghana) 64% 1 4 2 4 5
Solar Ovens (Uganda) 60% 1 1 3 5 5
Note: AADT Consultants (Liberia), Palm Fruit Processing (Sierra Leone), were not evaluated due to 
logistical constraints.
Assessment, African Diaspora Marketplace 14 
4. GRANTEES‘ BUSINESS 
PERFORMANCE
The SME performance indicators consider the long-term viability of the local market impact by 
analyzing the businesses‘ sustainability and prospects for growth. We consider four areas of 
importance within business development: (i) revenue generation, (ii) integration into the value￾chain, (iii) business formalization, and (iv) access to finance. Together, these characteristics can 
help ensure sustainability because they strengthen small businesses‘ ability to overcome 
financial, technical, and networking constraints that they typically face. Consistent revenue 
generation and formalization, when taken together, increase an SME‘s ability to obtain financing 
from a formal financial institution. Revenue generation allow entrepreneurs to invest in new 
labor and in technological innovations to remain competitive. Incorporation into the value-chain 
facilitates an SME‘s ability to connect with other markets and providers, and helps the business 
maintain a steady cash flow, which ultimately feeds back into revenue generation. Finally, 
formalization allows SME‘s better access to financing, which allows it to improve productivity 
and contribute more widely to the national economy. 
The table below shows how these issues apply differently depending on the kind of business 
evaluated—start up or existing. 
Table 6: Evaluation Criteria Start-up and Continuing Businesses, SME Performance 
Indicator Start-up Existing
Revenue generation Initial production at one year 
of operation generates sales 
just below or at breaking 
point. 
For businesses in operation 
for more than two years, 
sales increase by 20% and 
leave profits for reinvestment 
or shareholders distribution
Value chain integration Production unit formalizes 
and carries out contracts with 
other enterprises in the 
commodity’s value chain
Achieve vertical growth by 
selling to larger distributors, 
adopting new methods to 
increase productivity 
Business formalization The business register its 
existence with the local 
authorities
Registration and licensing is 
expanded to most of its 
activities
Access to finance The infusion of funding 
provides an incentive to 
financial institutions to 
provide additional funding
The infusion of funding 
provides an incentive to 
financial institutions to 
provide additional funding
Overall we find that businesses did not arrive at their desired goals. Some of these difficulties 
stem from the businesses‘ lack of realistic plans and knowledge of business development. In 
some cases, the local environment (i.e. currency devaluations or construction supply shortages) 
did not contribute to generating revenue. Moreover, the time required to carry out the 
business constituted a constraint to meet ADM‘s expectations during the grant timeframe. 
Assessment, African Diaspora Marketplace 15 
REVENUE GENERATION 
In determining the strength of revenue generation within ADM, it is important to separately 
analyze start-up and existing businesses, since it can be expected that start-ups operate at a loss 
for the first few years. 
Table 7: Revenues Generated, Yes/No, by Business 
Project
Business
Generated
Revenue
Note
AACE (Nigeria) √
As of June 2011 the company began to break even 
through sales of 10,000 a month.
Ansa (Ghana) √
This company has been generating revenue as it is 
an existing business
AMAD Metal (Ethiopia) x
Global Tracking (Ethiopia) √
Sproxil (Nigeria) √
TAF BioTechnology
(Ethiopia) √
This company has been generating revenue as it is 
an existing business, but none are from the ADM 
funded product.
Microclinics (Ghana) √/x Only one clinic was generating revenue but no 
information was provided as to the amounts
Uza-Mazao (Kenya) √/x
This company has registered farmers so has an 
initial generation of revenue, but these gains are not 
predictive of ongoing revenues. 
Aceritas (Ghana) x
This company has been investing resources to 
prepare to launch its business in mid-2012.
Student Card (Ghana) x
EarthWise Ferries
(Uganda) x
Solar Ovens (Uganda) x
Note: AADT Consultants (Liberia), Palm Fruit Processing (Sierra Leone), were not evaluated due to 
logistical constraints. Legend: x (No), √/x (Yes, but with problems), √ (Yes). 
Six of the businesses were actually producing or providing services associated with the ADM 
funding: AACE, Ansa, Global Tracking, MicroClinics, Sproxil and Uza-Mazao.6
 Global Tracking 
has not been able to generate a profit, but it does have consistent revenues that cover its 
operational costs. There was a new customs charge on the devices that Global Tracking was 
not aware of, which cancelled out the profit margin in the pricing for its first contracts. A 
business that has generated revenue since July 2011 is Nigeria‘s AACE. As a food processing 
plant they have worked closely in increasing their distribution network with contracts with 
supermarkets. After nearly 18 months of being in operation, AACE has been able to generate 
revenue that covers the salaries of 9 workers, and US$15,000 monthly in sales. 
 
6
 It was not possible to generate information on profit and losses. Not all businesses had accounting information at the time of the interview. 
Assessment, African Diaspora Marketplace 16 
None of the start-ups are generating revenue, but several show promise. On particular start￾up, Aceritas, the goat breeding business, has yet to raise revenue. Although originally Aceritas
needed to acquire 100 goats to initiate the breeding program, they were unable to acquire 
more than 60 (20 of which were bought in Niger). They have not generated revenue, though 
they created at least six new jobs, and expect to be in business in two years. EarthWise Ferries 
also is on a trajectory to generate revenues once they begin their services. 
VALUE CHAIN INTEGRATION 
Most of the businesses had identified markets for their services, despite not yet producing 
goods and services. This access to market demand is primarily due to the innovative nature of 
the goods and services provided by the ADM businesses. A major issue faced by one Ethiopian 
company and a Ugandan company is unexpected costs in the form of customs fees and 
regulation. Because the products are new, it is impossible to predict these costs. EarthWise 
Ferries, in Uganda, had to accommodate for an increase in costs, associated with more 
expected breakdowns and shorter lifespan of its ferry engines from use of biofuel, by increasing 
its fares and shifting its consumer base upmarket. EarthWise Ferries has adapted its routes and 
done marketing across a wider array of consumers to tap into tourist, government and 
international business sectors. 
AACE and Aceritas are key examples where integration into the value chain has taken place. 
AACE has aptly and successfully moved up in scale not only adding employees and revenue but 
also connecting its products to wider distribution networks. Aceritas, the goat farm project in 
Ghana, has also been able to show some level of transnational and national integration, by 
consuming local raw materials, and buying goats from Niger and South Africa, which expanded 
its breed. 
BUSINESS FORMALIZATION 
Most of the businesses were formally registered before the ADM competition. However, the 
ADM did spur a few to register to compete for the ADM funding. For example, TAF 
Biotechnology registered in 2010 in Addis Ababa despite having been in operation for 15 years 
prior to the ADM grant. Of those that registered for the ADM funding, at least one was 
granted land by the national government. AMAD Metal, which was granted land by the 
Ethiopian government, is using the land to build its factory. Another business, MicroClinics, 
started quite late in its operations due to delays in obtaining permits and did not utilize the 
funding to complete three or more clinics as it had promised. In their case, formalization was 
incomplete because they lacked permits to establish the clinics. 
ACCESS TO FINANCE 
For most of the businesses, ADM funding made it possible for them to either start their 
businesses or represented a critical injection of funding to get their products off the ground. 
The support of ADM was mentioned as an important ―seal of quality‖ for businesses looking for 
additional investment and access to markets. Beyond the funding, having the support of ADM 
may contribute to long-term sustainability. However, the ADM requirement of formally 
registering did not seem to have substantially helped in opening grantees‘ options for formal 
financing. In particular, AMAD Metal was finding it difficult to access bank credit due to 
Assessment, African Diaspora Marketplace 17 
stringent capital requirements for new businesses, as well as nationwide restrictions on credit 
in Ethiopia. 
Table 8: Scoring of Grantees, by Grantees' Business Performance 
Business 
Performance
ADM Value￾Added
Business 
Functioning
Revenue 
Generation
Diaspora 
Partnership
Value Chain 
Integration
AACE 
(Nigeria) 92% 5 5 4 4 5
Ansa (Ghana) 80% 5 4 4 2 5
Global 
Tracking
(Ethiopia) 80% 3 5 4 4 4
Sproxil
(Nigeria) 80% 5 4 4 2 5
Uza-Mazao
(Kenya) 68% 3 5 3 4 2
EarthWise 
Ferries 
(Uganda) 68% 1 5 3 4 4
Aceritas 
(Ghana) 52% 5 2 1 1 4
AMAD Metal 
(Ethiopia) 48% 5 2 1 2 2
MicroClinics
(Ghana) 48% 2 2 1 2 5
Solar Ovens
(Uganda) 48% 5 1 1 3 2
Student Card
(Ghana) 36% 1 2 1 2 3
TAF 
BioTechnology
(Ethiopia) 36% 1 1 1 3 3
Note: AADT Consultants (Liberia), Palm Fruit Processing (Sierra Leone), were not evaluated due to 
logistical constraints.
5. DESIGN & IMPLEMENTATION
The project design criteria are structured to measure critical aspects of the design of the 
program, i.e. selection of grantees, clarity of program vision, roles, responsibilities and work 
plan, determination of outcome indicators and milestones, development of grant agreements, 
and communication among partners. Implementation, as understood by the community and 
diaspora leaders themselves working on the activity, provides a framework of the success of the 
development project itself, but not the impact. Here we consider whether the initiative is 
implemented smoothly, transparently, and in such a way that strengthened partnership among 
the various actors and increased the likelihood of similar funding mechanisms in the future. 
Below we illustrate the typical indicators that would be used to evaluate design and 
implementation. 
Assessment, African Diaspora Marketplace 18 
Table 9: Evaluation Indicators Start-up and Continuing Businesses 
Indicators 
Smooth implementation process (this means, the bureaucratic process is free of bottlenecks 
or administrative hassle)
Matched product delivery (ensuring that what the organization proposed to do with the 
resources at hand matched with what they ended up with, both in terms of the end product 
and its quality).
In observing the ADM design, we found several limitations that may have affected the project‘s
implementation. The ADM objectives and purpose was written down in the proposal, namely 
―to support the entrepreneurial spirit and resources of the U.S.-based African diaspora 
community to promote economic development in Sub-Saharan Africa by facilitating diaspora 
direct investment (DDI) in viable small and medium enterprises.‖ Nevertheless, management 
partners differed substantially in their perspectives of the purpose of the ADM, and staff 
interviewed felt that the ADM objectives were ―moving targets‖. There was disagreement as to 
whether the purpose of the proposal was to get diasporas to participate in a partnership or to 
promote business development. 
Central to grant approval is the review process and its outcome. Those who participate in the 
review are typically people with experience in the field and area of attention. Proposal 
reviewers included people in business or development; however, it seemed they lacked 
expertise on diasporas or on grant proposal review or the time to carefully review the 
proposals. Many of the proposals exhibited clear weaknesses in the design where a close read 
and review could have prevented their approval or errors in implementation. 
Other issues include aspects such as grant timelines and milestones. Grant timelines, which 
formed the basis for the grantees‘ milestones, did not reflect their stage of development, and 
are not indicative of future success (see Appendix 3 for grantees‘ milestones). ADM‘s 
structured timelines generated problems that grew over the course of the granting period. A 
timeline of 18 months is dramatically short when it comes to supporting small business 
development, and it is even shorter for a startup. This issue alone limits the evaluation of a 
business‘ performance. The time it takes for a business to take off from an early stage of 
formation into an operational one can be as long as a year, and going from a startup stage to 
being fully operational, with material and financial resources in place, can take an additional 
year. These missteps from the outset set the grantees up to fail in achieving project milestones, 
despite their being tailored to each grantee. Finally, milestones were often about one particular 
activity or output (purchasing equipment, training, etc.), which even if completed would not 
mean that the business was sustainable. 
Outcome indicators suffered similar shortcomings as milestones, but for different reasons. 
Outcome indicators were uniform across grantees: 
Number of Direct Jobs Created 
Number of Unique Customers 
Profitability or Net Income 
Additional Financial Investment Leveraged 
Assessment, African Diaspora Marketplace 19 
Additional In-Kind Investment Leveraged 
However, these indicators failed to reflect the businesses‘ type of operations and were not 
commensurate with the activities needed for good business performance. In the first case, all 
grantees were expected to provide evidence of number of jobs, number of unique customers, 
profitability, additional financing, additional leveraging. From the start, for example, not all 
potential businesses can be expected to be in a position to show new jobs or new customers, 
much less profits. Due to their innovative nature, many of the business were capital intensive, 
and therefore generating new jobs would not be an appropriate indicator of their success 
overall. Others, like most startups, needed time to work on job creation or to show any net 
income. More importantly is the question as to whether these are the type of indicators one 
should expect out of an emerging business. Inappropriate outcome indicators precluded 
businesses from performing well per ADM‘s expectations. Insufficient monitoring and 
evaluations missed opportunities to avoid delays in operations and to keep the businesses on 
track (though not necessarily on time) to fulfill proposed business activities. 
It is important to note that lack of planning from the outset and insufficient documentation of 
the ADM goals, budget for activities (such as monitoring and evaluation) and concrete 
indicators for success, was further exacerbated by changes in personnel. While changes in 
staffing is difficult to control, its impacts should be considered at the beginning of the ADM 
design process and steps should be in play to minimize the negative impact of staff rotation on 
the results of the granting facility as a whole. Institutional mechanisms for transparency and 
communication among the implementing partners should also be solidified and used during the 
design and implementation. 
6. TENTATIVE CONCLUSIONS 
& PRELIMINARY 
RECOMMENDATIONS
The ADM has the potential to connect diaspora to other economic opportunities and to 
identify and support diaspora as agents of change through their entrepreneurship in their 
homelands. As can be expected from people with different personalities, the ADM grantees 
highlighted different aspects of the granting facility that they were excited about and that they 
had hoped would have been more developed in the program. For example, Solar Ovens and 
Global Tracking diaspora partners were very excited about enriching the linkages between the 
grantees. AMAD Metal and EarthWise Ferries wished that ADM had provided more 
opportunities to network with investors. Both suggested a complementary 
Assessment, African Diaspora Marketplace 20 
mentoring/networking program for businesses in the US in the same sector to work with them 
as they develop their own businesses in their homelands. Several of the grantees saw the award 
as an honor in addition to the monetary grant, and they consider themselves as part of a ―first 
ADM cohort‖. It could be worthwhile to capitalize on this sense of belonging among the 
grantees by integrating them into future ADM iterations. 
Moving ahead, there are a few mechanisms that can increase the likelihood for success among 
beneficiary businesses of business plan competitions. First, it is quite important for USAID to 
improve its involvement in the selection and implementation process. This activity includes 
improving the design of the facility and introducing more oversight on the review of proposals, 
for example. A grant facility aiming to promote development through business enterprises 
share very similar characteristics in its design to other kinds of facilities. Specifically, the 
minimum components of a granting facility must include the following items: 
a) Definition of objectives that correspond to the mandate and goals of the facility‘s 
sponsors; 
b) Clear guidelines for the application process (this component typically includes conditions to 
participate, clarity in the activities allowed to carry out, matching requirements, budget 
consistent with activities, expected results and risks) that reflect objectives; 
c) Proposal scoring mechanisms that serves as guidelines to reviewers to determine their 
selection; 
d) Proposal reviewers with expertise in the field; 
e) Monitoring and evaluation tools to track the implementation of the grant; 
f) Work plan outlining the management of the grant facility. 
Grant Amounts 
Fixing a grant amount is a measure that does not correspond to the specific needs of a 
particular project in search for funding. Rather it is best to evaluate every proposal by its own 
merits associated with its objectives, activities, costs related to the activities, proposed results 
and possible risks. The exercise alone is far more convincing and realistic to the applicant than 
submitting funding for a fixed figure. 
Selection Process 
The selection process could be improved to ensure long-term development impact involves 
working more closely with candidates to develop a sensible business plan that considers the 
business‘ feasibility and sustainability, as well as gaps in knowledge and possible obstacles to 
implementation. Applicants could be accompanied by small business advocates in the creation of 
their business plan; in this way, they would benefit from the ADM selection process even if they 
are not ultimately awarded funding. 
Monitoring Tools 
Monitoring tools could be improved to better track businesses‘ progress and preempt 
problems before they derail production. Some of the challenges that have slowed success in the 
ADM pilot relate to lack of understanding on how to take a business to a next level. Monitoring 
the process would improve this situation. 
Assessment, African Diaspora Marketplace 21 
RECOMMENDATIONS: DEFINING AN APPROPRIATE PARTNERSHIP FOR 
ADM AND SIMILAR FACILITIES 
We propose a cooperation and partnership model between diasporas and governments for 
initiatives that foster diaspora-led development. The recommendation suggests adopting 
different modalities of cooperation that draw strength from the shared interests, purposes and 
endowment of governments and diasporas to enable specific activities or projects typical of 
development policy. The main focus of a partnership approach is to look into the operational 
aspects over the political considerations, without undermining the importance of the latter. A 
partnership in and of itself is a political choice by players to share their goals and resources on 
particular issues. There are also more instrumental considerations about the establishment of 
partnerships that pertain to the implementation of successful objectives. Deciding to engage on 
a remittance-related development partnership between diasporas, governments and other 
players involves different dynamics and steps. 
There are particular initiatives that meet remittance-related development goals through 
partnerships. However, the partnership arrangement requires an understanding also of the 
limitations and capacities of the players involved—governments and diaspora organizations in 
particular. It also depends on the expected results, instruments and risks. 
In this context, we find that current partnership practice and lessons learned on previously 
existing partnerships between governments and diasporas and other type of alliances show 
three main modalities: 
Policy or norm setting partnerships 
Environment enabling or instrumental partnerships 
Operational-technical intervention or resource investment partnerships 
Partnerships often include a combination of these modalities; however, there is a prevalence of 
one choice over the others. 
Policy or Norm Setting Partnerships 
These seek to set rules, agendas or standards relating to common issues. When it refers to 
remittance-related trends, an example of norm setting includes principles on money transfer 
practices, and scorecards on transaction cost. 
Environment Enabling or Instrumental Partnerships 
These are collaborative commitments aimed at facilitating an ongoing process, or ensuring, 
rather than shaping, the success of an outcome. This is also known as development through the 
diaspora, a practice by which diaspora associations or businesses operate as conduits of the 
development process. Examples include cooperative engagements to support the success of a 
particular goal, such as financial literacy, increased financial access for migrants. In these cases, 
governments and migrant associations partner with NGOs and international development 
agencies to facilitate the implementation of massive educational programs or information 
dissemination about financial access to families who receive remittances. 
Operational or Technical Intervention Partnerships 
Assessment, African Diaspora Marketplace 22 
These are also described as development by the diaspora, and is an effort by which migrant 
associations partner directly with governments and other agents to work in concrete 
development projects, contributing their own resources and participating in the implementation 
and monitoring, that is, shaping the success of the outcome. 
RECOMMENDATIONS: CONDITIONS OF A SUCCESSFUL PARTNERSHIP 
Diasporas and governments have expressed interest and willingness to partner to leverage 
remittances for development. For many, these expressions of interest have come with 
uninformed knowledge of each other‘s counterparts (that includes assumptions or false or 
inaccurate projections), poorly prepared proposals for joint work, no resource endowment to 
contribute, or with the wrong interlocutor or environment. 
This section and the next offers a partnership model with diasporas that incorporates policy 
solutions to the issues that can further link remittances to development through a partnership 
that empowers all participants, validates their collaborative efforts toward development, and 
builds achievable results. The model considers these modalities, which are associated to typical 
partnership conditions to an efficient alliance, such as holding common ideas and goals held by 
stakeholders and joint and pooled resource commitment. This approach also considers other 
components that guarantee the implementation of a successful cooperative engagement. 
The main thrust of this model consists in promoting and achieving an engagement by which 
diasporas, government officials, local private sector entities, and international cooperation 
identify solutions to address problems associated to increasing financial access to remittance 
recipients. Such solutions are adopted by following an implementation framework that requires 
the recognition among stakeholders of key points: 
Partner Symmetry 
Clear Shared Goals 
Resource Commitment 
Commitment to a Timeline 
Trust and Accountability 
Communication and Information Sharing 
Measure of Expected Results 
Partner Symmetry 
In cooperative efforts, symmetry is a condition that demands first and foremost proportionality 
and equal sharing of responsibilities and commitments among prospective partners. It does not 
necessarily refer to equal contribution of material resources or to equal ‗power‘ positioning, 
but does not exclude this possibility. Partner symmetry is the commitment that all players will 
abide to the goals adopted, commit to the obligations assumed, and participate in the activities 
they commit. In a way, by agreeing to a symmetric relationship, partners are signing a 
contractual arrangement to work together while taking on the responsibilities, obligations and 
activities they have chosen to commit to. Partner symmetry thus establishes the basis of 
accountability among players. In order to achieve symmetry each participant must lay out their 
endowments committed to the partnership in full transparency. 
Assessment, African Diaspora Marketplace 23 
Clear Shared Goals 
Clarity of goal sharing consists of an exercise by partners to intelligibly decide on and be aware 
of the goals to adopt and achieve. The act of sharing goals is a political decision by which 
participants commit to work together on a particular objective or common agenda. Therefore, 
selecting to work in such fashion depends on a) technical advice to equip partners with the 
skills to identify those issues that are more likely to meet the interests of players; b) facilitation 
to distinguish between development needs rather than wants; and c) intermediation to choose 
a minimum workable agenda. Goal sharing thus involves the capacity to have a formed and 
informed knowledge of the properties embedded in the achievement of a goal. 
Resource Commitment 
Partners are required to committing resources to achieve the partnership‘s goals. Resource 
commitment demands pooling endowments from various sources. It does not demand 
symmetry in the allocation but rather commitment to the promised resources. This 
commitment requires a strict correspondence between the means to achieve the activities in a 
project and the partners‘ own endowment. Therefore, partners are to be in a position to 
identify their capacities vis a vis their goals, and seek to obtain and allocate those assets 
accordingly. 
Commitment Timeline 
The ability to organize the project in the partnership according to a timeline is an important 
ingredient of success as it ensures the realization of the objective as planned. Moreover, setting 
timelines functions as a control mechanism that sets in place various stages of implementation. 
Partners are to commit to meet those timelines, and ensure that the objective is delivered or 
achieved as planned. 
Trust and Accountability 
Partners that engage on a collaborative agreement are to provide some minimum ingredient of 
trust among each other that assures the other of their intentions. Trust building instruments 
include the written agreements, resource and timeline commitments, as well as disclosures of a 
player‘s institutional operation and the presence of a channel of communication with a reliable 
counterpart. Another important component of trust is the provision of access to information, 
knowledge and networks to aspects that can strengthen the partnership. Accompanying trust is 
the establishment of mechanisms that hold the partners accountable to their commitments and 
activities in ways that the operation is transparent and efficient. Accountability functions as a 
check and balance that strengthens trust among partners and motivates them to fulfill their 
commitments. 
Communication and Information Sharing 
The partnership requires that a line of communication and information is shared regularly 
among players in order to stay informed about the quality and progress of the partnership. In 
this case, a plan for monitoring and evaluation would be helpful to have in place. In the process 
of forming a plan, partners can clarify their expectations for the project and also solidify a 
baseline structure for communicating project progress among partners. 
Assessment, African Diaspora Marketplace 24 
Measure of Expected Results 
The expected results need to correspond with the goals set as well as with a measurable set of 
indicators that evaluates the extent of achievement to the proposed outcomes. The decisions 
to engage those components into a partnership are political in nature but operational in 
practice. In that sense the steps taken to adopt a partnership include a mix of these 
components that help players decide on their best choice. Of particular importance is to 
consider a framework on development impact. Considerations on development and migration 
include four particular indicators: ownership, commensurability, sustainability and replicability. 
Diaspora and government partnerships on development incorporate mechanisms that a) create 
ownership to the communities that benefit from projects; b) clearly distinguishes between 
needs and wants of the beneficiaries; c) ensures that the partnership provides the tools for a 
project‘s self-sustainability after its implementation and d) contains attributes and instruments 
that can be replicated elsewhere. 
RECOMMENDATIONS: STEPS TO BUILDING A SUCCESSFUL PARTNERSHIP 
Taking the first step to engage players to forge a partnership often times is the most difficult 
path to make. However, along the way, stakeholders find solutions to solve problems they 
didn‘t foresee. It is important to consider preliminary first steps (i.e. trust building, goal setting 
and communication) to forging a partnership. A second step consists of evaluating the costs of 
engagement, durability and expected risks. Third is the implementation of the partnership with 
resource endowment, a work plan with a timeline, and measurable indictors of performance 
and final results. 
Step One: Building Trust, Communication, and Setting Goals 
There are key issues to clear up as prerequisite to a partnership. Building trust among potential 
partners is a key component. In order for governments to trust diasporas and vice versa they 
need to know each other better, and remove assumptions or false expectations. That exercise 
builds trust. Many African governments often maintain a bifurcated and contradictory image of 
their emigrant communities. Diasporas are often perceived by governments to be wealthy and 
capable to become investors, parallel to this they see families of migrants as poor and incapable 
of building assets. The reality is mostly the inverse; immigrants are relatively poor (particularly 
those in Spain, the Netherlands and Italy, and less in England, France or the United States). 
Their relatives in the home country have improved their condition and have been able to save 
considerable amounts, albeit informally. Migrants and migrant associations also assume their 
home country governments are ineffective institutions and corruptible, with little commitment 
to work on development plans. On both sides there exists an absence of clear knowledge 
about each other. 
Similarly, through joint meetings, governments and diasporas can learn to communicate their 
views and interest, and craft with the help of experts, agendas that they can have a buy in into a 
partnership. Communication efforts include exchanging information about the right 
counterparts and interlocutors to deal with, understanding the institutional mechanics of how 
diaspora associations work and government agencies entrusted with diaspora affairs operate. 
Goal setting strategies are also a first step to establish a relationship toward a partnership. The 
process to identify common goals is essential and requires of the advice of experts and 
Assessment, African Diaspora Marketplace 25 
facilitators that provide information about issues of common interests and ways to select and 
choose those particular goals they see fit their interests, commitments and capacities. 
Step Two: Estimating Partnership Costs, Durability and Risks 
The second step looks at the partnership possibilities by considering the material circumstances 
and realities of setting in place a joint collaborative project. Three considerations to that are 
the evaluation of costs, the length of time to carry the partnership and project and the risks 
such engagement can entail. Evaluating costs is an exercise typical of an estimation of seeing the 
partnership as a project that requires a range of activities (organizational and operational) for 
its implementation. This review includes the assessment of available resources and resources 
(financial and human) needed to be raised to carry out the partnership. 
Accompanied to the cost estimation is the durability of the partnership and the projects. Many 
times the lifespan of a partnership is defined by the goal itself, and in other cases is not. There 
are long lasting partnerships that maintain an ongoing review of goals and objectives attached to 
concrete activities and expected results. Therefore defining the durability of the partnership as 
a means to a project‘s end or to a long-term collaboration is a critical decision and step. But 
also setting timelines for the partnership‘s activities is also important. As mentioned earlier, the 
timelines function as benchmark setting devises that help partners and on the ground 
practitioners attach to a particular timed structure. 
The risks of a partnership are equally twofold. There are grander political risks associated to a 
partnership between the diaspora and the government and other players. The second kind of 
risk is related to the activities that come with the partnership and include calculations of 
problems that can result during the implementation of the partnership. Many activities do not 
foresee risks that could result in the process because the expectations were not properly 
informed with adequate data, information, resources or expert advice. The components of 
these three elements however contribute to solidify a firm decision to proceed or return and 
re-explore the partnership. The third step to follow gives way to the partnership itself. 
Step Three: Partnership Formalization, Implementation and Evaluation 
This step is the most fundamental and foundational of the entire engagement. It is the 
formalization and initiation of the partnership by working concretely in any of the modalities 
adopted (norm, enabling or operational). The implementation depends on the articulation of 
the commitments placed (shared objectives, resources, expected risks), to develop the 
collaborative exercise. Through the process there exist a feedback between the activities and 
their evaluation, in combination with exercises of checks and balances to ensure accountability 
of performance in the partnership by the participants and the project itself. 
RECOMMENDATIONS: TECHNICAL ADVISORS 
A final recommendation is utilizing technical advisors. The partnership can maximize impact by 
relying on technical experts that help determine weaknesses and areas of adjustment. 
Specifically, some businesses find themselves in a holding pattern, unable to grow due to 
uncertainty about next steps, including whether to obtain more capital, further modernize their 
production process, hire new workers, change raw materials, etc. Technical advisors can help 
Assessment, African Diaspora Marketplace 26 
find solutions in the short term. Some barriers that ADM businesses face, and which a technical 
advisor could help overcome include: 
Operations: Although participants had business backgrounds, many were venturing 
into new areas. Some businesses found it difficult to equip factories and start 
production. Technical assistance to fill gaps in business knowledge would be useful for 
businesses to fulfill their timelines. 
Financing: Several businesses had difficulties obtaining business development loans, and 
finding investors. A technical advisor could help connect these viable businesses with 
financial institutions interested in supporting them. 
Efforts such as these would ensure that more businesses overcome barriers that might 
otherwise cause them to shut down or, at the very least, slow business‘ growth and limit the 
economic impact of each awardee. It is estimated that a part-time technical advisor could 
sufficiently respond to the needs of the projects currently in place, with the result being 
improved development impact within 2-3 years. 
Assessment, African Diaspora Marketplace 27 
APPENDIX 1
Management People interviewed: 
Sarah Mattingly, previous Technical Director for ADM, AED 
Laura Muzart, current Program officer for ADM, AED 
Paul Bundick, Director, Field-Support LWA, AED 
Nussi Abdullah, Deputy Project Director and Microenterprise Learning Manager, AED 
Romi Bhatia, Senior Advisor for Diaspora Partnerships, USAID 
Yvon Resplandy, Senior Advisor for Diaspora and Remittances, USAID 
Barbara Span, VP, Public Affairs, Western Union 
Thomas Debass, Director for Global Partnerships, U.S. Department of State 
Borany Penh, Senior Trade and Economic Advisor, USAID 
African Diaspora And Partners Interviewed, August 2011: 
Henry Adobor, Green Acres Goat Farm, Ghana 
Michael Asamere, TAF BioTechnology, Ethiopia 
Solomon Berhanu, AMAD Metal Manufacturing PLC: Metal Products Fabrication, Ethiopia 
Kojo Benjamin Taylor, Using Franchising Business Model to Improve Access to Healthcare in 
Africa, Ghana 
Raymond Rugemalira, Uza-Mazao(TM), Kenya 
Nwando Ajene, Processing and Preserving West Africa's Best Fruits and Vegetables, Nigeria 
Robert Smith, EarthWise Ferries Uganda Ltd: A company dedicated to restoring Passenger 
Ferries on Lake Victoria, Uganda 
Zelalem Dagne, Fleet Management System (Vehicle Tracking), Ethiopia 
Tenu Awoonor, Student Card: Creating a Cashless Environment for our Future Generation, 
Ghana 
Ashifi Gogo, Sproxil.com: Mobile-based Brand management & Anti-counterfeiting for Cash￾based societies, Nigeria 
Paul Ansah, Reliable Power Supply, Ghana 
Ronald Mutebi, Cooking Solar Ovens Manufacturing, Uganda 
Assessment, African Diaspora Marketplace 28 
APPENDIX 2
Collection of Data and Scoring Tables 
To measure the ADM design, project results, grantees‘ business performance and impact on 
development we developed 52 survey questions, of these some were adapted for individual 
interviewees, depending on their role in the ADM. The questions that were consistent across 
interviewees were used to understand convergence (i.e. people were on the ―same page‖) and 
discrepancies in perspectives. The discrepancies were analyzed to understand whether they 
could make the program malfunction (if for instance, one person thought the program was for 
Latin America and another for Africa), or if they were compatible, but just distinct perspectives. 
Our fieldwork included conducting interviews with relevant individuals associated to ADM, also 
on site interviews to 12 of the 14 grantees, information collected about the local and national 
economies (particularly as it related to the industry sectors the grantees were working in). 
The interviews generated qualitative data, which formed narratives for the four assessment 
prongs. Evaluators sought to minimize response bias and evoke candid detailed responses in 
each interview. To do so, survey questions were memorized beforehand, and asked in an 
organic fashion that flowed with each conversation. These responses were recorded (either in 
audio or by-hand) and then organized per their survey category after each interview. All 
information gathered was considered, and points not included in the survey were written-up to 
provide context for the survey data. 
Later the survey questions were refined into ―key‖ questions to summarize performance in 
project design and implementation, grantees‘ business performance and local development 
impact. A coding scale was developed based on the qualitative criteria defined beforehand. 
Using the combined answers from survey questions, businesses were rated on each key 
question from 1 (poor) to 5 (high). An average score was taken from each, and then a total 
score (which combined ratings from each section) was assigned to each business. Due to the 
qualitative nature of the responses, there is some risk of problems with inter-coder reliability.7
However, evaluators discussed and compared their ratings at length to minimize this error. 
Because the ratings are on not based on items that can be equally weighted, percentages should 
not be read as 100% being twice as high as 50%. Rather the ratings are meant to provide a 
snapshot of the relative implementation, grantees‘ business performance and impact on 
development against each other. 
 
7
 That is, making diverging or contrasting interpretations over particular criteria, and ensuring that scoring 
qualitative responses is consistent. 
Assessment, African Diaspora Marketplace 29 
APPENDIX 3
Milestones, by Project 
Businesses Reviewed Milestone Due date
AACE 
a. Completion of the Operations Manual as 
evidence supported by submission of the 
Operations Manual
b. Submission of completed time sheets 
related to sweat-equity (salaries for Nwando 
Ajene and Ndidi Nwuneli for the first 
reporting period from the signing of the grant 
agreement to distribution of second 40% 
payment)
c. Proof of 40% matching contribution
January 26, 2011
Aceritas 
a. Completion of the Operations Manual as 
evidence supported by submission of the 
Operations Manual
b. Proof of 40% matching contribution 
December 26 2010
AMAD Metal 
a. Commencement of construction and the 
completion of the foundation as evidence 
supported by the submission of photographs
b. Proof of 40% matching contribution
January 26, 2011
Ansa 
a. Completion of the purchase of all 
diagnostic equipment (1st round) and the 
purchase of the first project vehicle as 
evidence supported by submission of receipts 
and photographs
b. Proof of 40% matching contribution
December 26, 
2010
Uza-Mazao
a. 600 Farmers registered and actively 
selling through Uza-Mazao, as evidence 
supported by submission of receipts to show 
transactions
b. Submission of completed time sheets 
related to sweat-equity (salaries for Raymond 
Rugemalira for the first reporting period 
from the signing of the grant agreement to 
distribution of second
40% payment)
c. Proof of 40% matching contribution
December 26 2010
EarthWise Ferries 
a. Begin operation of Ferry #1 as evidence 
supported by submission of press release, 
photos or other supporting media 
b. Proof of 40% matching contribution
November 26 
2010
Assessment, African Diaspora Marketplace 30 
Global Tracking
a. Completion of the second Performance 
Review (after second Project 
Implementation Conference) as supported 
by the submission of the Performance 
Review Report
b. Proof of 40% matching contribution
November 26 
2010
Sproxil
a. Completion of the design of alternate 
product labels as evidence
supported by submission of design templates 
or photographs b. Proof of 40% matching 
contribution
November 26 
2010
Student Card
a. Completion of the brochures (marketing) 
and the introduction of materials to schools 
as evidence supported by submission of 
brochures and confirmation from schools
b. Proof of 40% matching contribution
January 26, 2011
TAF BioTechnology
Completion of the purchase of equipment 
(including: vertical
autoclave, laminar flow cabinets, hot air oven, 
refrigerator, electrical cooker, universal data 
recorder, RVS baskets and glassware) as 
evidence supported by submission of 
receipts
b. Proof of 40% matching contribution
November 26 
2010
Solar Ovens 
a. Completion of the assembly plant in 
Uganda as evidence supported by submission 
of photographs and receipts
b. Proof of 40% matching contribution
November 26 
2010
MicroClinics
a. Completion of an Operations Manual as 
evidence supported by submission of the 
Operations Manual
b. Proof of 30% matching contribution 
November 26 
2010
AADT Consultants 
LLC. (AADT) Not evaluated due to logistical constraints.
Palm Fruit Processing 
Company Limited Not evaluated due to logistical constraints.