A study conducted by the Caribbean Policy Research Institute (CaPRI) has estimated that Jamaica is losing at least US$108 million ($13.9 billion) annually in untapped Jamaican diaspora investments largely based on structural incapability and rigid government policies.

The study, entitled ‘Value of the Diaspora to Jamaica’s Growth Agenda’, was yesterday delivered by research officer at CAPRI, Shanike Smart, at the Jamaica 55 Diaspora Conference. It was aimed at assessing the significance of the Diaspora’s contribution to Jamaica, identifying what the Diaspora is contributing to beyond remittances, and whether there was in fact unexploited economic value from Jamaicans living overseas.

CaPRI red-flagged investment in local businesses, banks, and the Jamaican stock market as the highest area of untapped economic potential from the diaspora market.

According to the study, the Diaspora currently invests US$330 million in banks across Jamaica and another US$230 million in local businesses. Investment in the stock market totalled US$175 million, bringing to total current investment of US$493 million from the Diaspora.

But CaPRI says that Jamaica could see investments from the Diaspora increase to more than 24 times the current amount to US$12.8 billion from US$493 million — if deliberate steps were taken to exploit the revenue potential.

At minimum, the study details that the country could earn US$2 billion or 14 per cent of GDP from Diaspora investments annually, almost equivalent to what Jamaica now earns from remittances.

“To realise what the potential was we took into consideration three elements: We looked at the size of the Diaspora, what they are earning and their propensity to save. Annually, we estimated that the Jamaican Diaspora — of the US$500 billion which the World Bank speaks to — is saving approximately US$12.8 billion,” Smart told a packed room of local business managers and Jamaicans living overseas at the Jamaica Conference Centre in downtown Kingston yesterday.

“While we are not expecting to get all of this money, a portion of this can be targeted for local investments,” she continued.

CaPRI also noted that Jamaica could improve its export number to markets such as the United States, United Kingdom and Canada to US$126 million or 0.9 per cent of GDP from the current US$89 million if trade flows to the markets are improved or opportunities to set up shop in the countries capitalised on.

Other areas explored that could see increased contribution to GDP through the Diaspora markets include tourism and philanthropy. The study indicates that the Jamaican Diaspora currently contributes a minimum of 23 per cent of GDP, but estimates show that the country has the potential to earn a minimum of 35 per cent once the facilities are put in place.

“That leaves us with an unexploited value of 12 per cent of GDP. Yesterday I heard the minister of education say he needed $13.5 billion to build 17 schools, but that’s only six per cent of what we could earn from the Diaspora,” Smart reasoned.

As part its mission, the Jamaica Promotions Corporation (Jampro) along with the Ministry of Foreign Affairs and Foreign Trade has sought to engage investors from the Diaspora to further spend on local projects which could ultimately improve Jamaica’s growth opportunities for community and economic development.

In fact, the Economic Growth Council, as part of its Call to Action for Jamaica to increase growth to five per cent over the next three years, has identified harnessing the power of the Diaspora as one of the ways to achieve its growth target.

Still, members of the Diaspora, over the years, have complained that making investments or even donations to specific charitable organisations in Jamaica has proven to be a headache due to government policies and the lack of structure in the system.

It is hoped that at the end of the four-day conference some of the inefficiencies will be addressed.