The mobilization of financial resources to finance development projects and SMEs remains a difficulty for Senegal and the countries in the area. For financial expert Meissa Lô, double taxation of the diaspora could constitute an effective mechanism.
In its strategy for mobilizing financial resources, the Government of Senegal is banking on mechanisms such as “Diaspora Bonds”. For financial expert and market finance consultant, Meissa Lô, the idea is to be applauded. The objective, according to him, is to urge political leaders to think more about a debt held largely by locals (citizens) than by foreigners. This, indicates the specialist, is the case of Japanese debt. But the only problem, thinks Mr. Lô, is that it will still be a debt, the ceiling of which must not be exceeded, required by UEMOA, has been exploded by the Macky Sall regime a long time ago. . Based on this situation, Meissa Lô thinks that West African states, particularly Senegal, must consider the possibility of double taxation of their diaspora estimated at 30 million. Access to taxes paid by the African diaspora in their host country, he suggests, should be negotiated by States bilaterally or by regional organizations (ECOWAS, CEMAC, etc.).
Failing to find the financial package to mobilize sufficient funds via transfers from the African diaspora (i.e. $93 billion), Meissa Lô suggests collecting taxes directly in their countries of residence or even taxing their savings. This would amount to 53 billion dollars according to the World Bank. A windfall that would make it possible to finance SMEs/SMIs, startups or project ideas that Africans in the diaspora wishing to return intend to launch. “If our States manage to mobilize on average $500 in taxes for each of the 30 million Africans in the diaspora, this would constitute a war fund of $15 billion that could help invest directly in local businesses, create wealth and employment, reduce the weight of debt on investment on the GDP of States,” explains the expert. In his eyes, the mobilization of these revenues can be achieved through a good communication campaign with the diasporas and the assistance of partner states of the European Union and America as well as the Bretton Woods institutions (IMF, World Bank ).
The counterpart for these host States (France, Germany, Italy, United States, etc.) is the assurance of a real return home policy for immigrants. In addition, the benefits linked to investments should make it possible to reduce the unemployment rate in the countries of origin and reduce the number of candidates for illegal immigration. “With good awareness, this double taxation should in no way be a constraint for the African diaspora, but rather its significant and direct contribution to the development plans of their countries of origin,” considers Meissa Lô.
