Diaspora Finance: A Pathway to Strengthening Climate Resilience in Sub-Saharan Africa

Abstract

As climate change accelerates, the costs of adaptation are rising sharply. This escalation comes at a time when financial inflows to developing countries – such as official development assistance and foreign direct investment – are declining. Meanwhile, the global political climate is becoming unfavourable to sustained climate financing commitments. In this context, the role of remittances in supporting climate adaptation and mitigation in developing countries has attracted growing interest. This paper broadens the lens to examine diaspora finance more holistically, encompassing not only remittances but also diaspora investments and knowledge transfer. It explores the potential of these various diaspora finance channels to contribute to climate action in sub-Saharan Africa and concludes by highlighting diaspora finance as a crucial source of new private funding to supplement existing climate finance.