CONSTRUCTION BUSINESS & PROJECT MANAGEMENT CONFERENCE 2022 · Vol. 2022, Issue 1

Assessing readiness to adopt diaspora bonds for financing infrastructure projects in Malawi

Chiponosko Mkandawire and Grace Namayombo Sukasuka

Keywords: Adoption, diaspora bonds, enabling environment, infrastructure finance gap

Abstract

Infrastructure development is a backbone of the development of a nation. Even though this is the case, there is a financing gap and many nations including Malawi are looking for ways to fill this gap. Diaspora bond is one tool that is being considered as the diaspora community is a key contributor to the well-being of developing countries. This study aimed at contributing on how Malawi can successfully issue the diaspora bond. The study used a qualitative approach where semi structured interviews and open-ended questionnaires were used to collect data. The findings indicated that political risk can be one of the major hindrances in the issuance of the diaspora bonds. Other factors to be considered when issuing the diaspora bond includes the governance systems, a mass of well to do diaspora community. The findings also revealed that there are many local investment platforms that the government and other infrastructure developers have not fully utilised. The policy recommendations have been directed in a way that would enable government tap into both the local investment platform and the diaspora resources .