Ethiopian Diaspora Investment Potential and EEPCO's Millennium Bond
6 Pages Posted: 6 Apr 2009
Date Written: March 30, 2009
A number of studies have examined why Diasporas invest in their homelands. The reasons include emotions, sense of duty, social networks, strength of Diaspora organizations and high returns. As of late Diaspora bonds have been found to be useful vehicles for channeling finance from developed countries to developing regions of the world. This short commentary examines Ethiopia's first Diaspora bond. The bond was issued in 2008 by the state owned power utility company, EEPCO. The article examines the elements of the bond, and provides suggestions for making the bond investible.
Keywords: Diaspora bonds, uncertainty, rate of returns, Ethiopia
JEL Classification: G12, G14, G18, G21, H43, L15, N27, Q51
Suggested Citation: Suggested Citation