By Imani Duncan-Price

In an apartment in Brooklyn, New York, 32-year-old software engineer Michael Thompson* sends his monthly remittance to his family in Clarendon. 

Like clockwork, the US$500 transfer covers groceries, school fees, and medical bills. But Thompson, like many in Jamaica’s 3-million-strong diaspora, is unaware that his contributions could do more than sustain households – they could fuel national development. 

Jamaica’s diaspora, scattered across the US, Canada, and the UK, sends over US$3 billion annually in remittances, a lifeline that accounts for 16 per cent of the nation’s gross domestic product (GDP). 

Yet, less than three per cent of these flows enter the Jamaica Stock Exchange (JSE) or government bonds annually. As global markets fluctuate and inflation bites, unlocking this untapped capital could transform Jamaica’s economy – if the right mechanisms are in place.

‘Diaspora dividend’: From remittances to investments

Remittances have long been Jamaica’s economic backbone, but their potential extends beyond immediate consumption. Imagine redirecting even five per cent of remittances into productive investments.

That would potentially be US$150 million annually for infrastructure, SMEs, and innovation. The potential has often been talked about but not yet realised.

• Diaspora bonds: Government-issued instruments targeting overseas nationals offer a proven model. Israel and India have raised billions through such bonds, often framing them as patriotic ventures. Jamaica flirted with this idea in 2013, issuing a US$300 million diaspora bond to refinance debt, but limited marketing, lukewarm incentives and the market realities then led to modest uptake. Today, notwithstanding the recent downturn in the economy primarily due to hurricane and rain damage, Jamaica’s macroeconomic fundamentals are stronger.

• ESG-linked bonds: The recently launched Green, Social, Sustainability, and Sustainability-Linked Bonds (GSS+) can provide opportunities for local companies that align with diaspora values by financing renewable energy, affordable housing or climate-smart agri-business expansion.

• Enter Blue Mahoe Capital: In February of this year, the US-based impact investment firm, launched a pioneering Caribbean Diaspora Bond offering to finance affordable housing projects in Jamaica.
  The bond, offering 10 per cent annual returns, allows US-based diaspora investors to buy one bond for US$100, making it accessible to retail investors. The take-up on this will be critical to watch as it can be a weathervane for other such initiatives driven from Jamaica itself.

Seizing the opportunity

The urgency to engage the diaspora is underscored by its sheer scale. A 2014 estimate by the Jamaica Diaspora Institute (JDI) found approximately 1.7 million Jamaicans in the US, 300,000 in Canada, and 800,000 in the UK – a collective force of nearly 3 million people (CAPRI, 2017).

Yet, as of 2017, diaspora investors held just 4.2 per cent of trading accounts on the Jamaica Stock Exchange (JSE), with their total equity investments valued at US$321 million. These figures, highlighted in CAPRI’s 2017 report, reveal a stark gap between the diaspora’s size and its financial footprint in local markets. With JSE’s 2023 market capitalization at J$1.8 trillion (US$12.12 billion), there is significant room for growth. 

Bridging the gap: Fintech, marketing and policy innovations

To channel diaspora wealth into stocks, a multi-pronged approach needs to be pursued to address complex brokerage processes, limited awareness and build trust and confidence:

1. Diaspora-focused investment platforms

Collaborate with broker dealers and fintech firms to create user-friendly apps offering:

• Remote account setup via digital KYC (know your customer) processes,
• Dedicated diaspora client managers to provide advice on equity opportunities and the basic how-tos,
• Auto-invest tools to convert a percentage of remittances into JSE Exchange Traded Funds (ETFs) or bonds, and
• Local partnerships with local remittance companies to offer easy “Invest & Send” options from their platforms.

2. Education and trust-building

• Craft a compelling marketing campaign, “From Reggae to Returns: Write Jamaica’s Next Verse”, positioning diaspora members as vital partners in shaping the nation’s future. This story would weave together cultural pride, generational legacy, and tangible impact, emphasising that investing in Jamaica is not just about returns, but about reclaiming ownership of Jamaica’s growth – with this, showcase diaspora investment success stories.
•  Ramp up existing JSE initiatives, partnering with groups like the Jamaica Diaspora Taskforce and representatives from JSE-listed companies and host virtual and in-person “From Reggae to Returns” roadshows in diaspora hubs (e.g., New York, Toronto, London). 
• Diaspora ambassadors: Partner with diaspora icons (athletes, artists, entrepreneurs) to champion investing as an act of patriotism. Imagine a campaign with Shelly-Ann Fraser-Pryce: “I run for Jamaica – I invest in Jamaica too.”
• Visible impact through transparency portals: Share real-time stories of diaspora-funded projects (e.g., a bond-financed hospital expansion or an equity-backed agritech business). Use social media to show diaspora investors “their” schools, roads, or businesses thriving.

3.  Tax incentives and guarantees

• Capital gains exemptions: Waive capital gains taxes for diaspora investors, mirroring incentives offered to local retail investors.
• Co-investment funds: Match diaspora investments in SMEs through government-backed ventures.

4.  Cross-border compliance

Inspiring the desire to invest in Jamaica is necessary but not sufficient. The process of actually investing must also be easy, cost-effective and meet regulatory requirements.

Establishing partnerships with US, Canadian and UK registered brokers to navigate their regulations and simplify access from those source markets to the Jamaica market will be key.

Building a legacy together

As dusk falls over New York City, Michael Thompson sketches a new vision: his remittances funding a solar farm in St Elizabeth or a tech startup in Kingston. With the right tools, Jamaica’s diaspora can transition from supporters of survival to architects of prosperity.

As JSE managing director Marlene Street Forrest notes: “Every diaspora investor is a partner in progress. Our markets thrive when they see themselves in Jamaica’s growth story.” 

For Jamaica, the message is clear: the diaspora is not just a lifeline abroad but a powerhouse waiting to be unleashed. We can build a resilient, inclusive economy—one investment at a time.

Imani Duncan-Price is a strategy and implementation consultant, World Economic Forum Young Global Leader alum and former senator. Email feedback to [email protected] and [email protected].