When Investment is Not Investment: The Story of ‘Yusuf’
If you are one of the Somali Diaspora and working towards investing in your motherland or the Horn of Africa region, your efforts should be applauded. It is a noble act to maintain your roots and contribute to the development of your homeland. However, it is crucial to remember that your investment should be something other than a zero-sum game compromising the quality of life for you and your family in your host country. Sacrificing your diaspora life and the well-being of your children to invest in Somalia is not a sustainable approach.
To illustrate this bad investment, I want to share the story of ‘Yusuf’ (a pseudonym), a Somali diaspora member residing in Britain.
Yusuf is a hardworking father of five children, all under the age of 20. Despite limited education, he possesses natural intelligence and knows what it takes to raise his family and survive in Britain. Yusuf holds multiple part-time jobs, with his primary income stemming from his position as a care assistant. Over the years, Yusuf has aspired to invest back home by purchasing a house. This project required him to save every penny, occasionally resorting to rotating credits, commonly known as ‘Hagbad’. After years of strict saving, Yusuf finally achieved his goal and bought a beautiful house in a desirable neighbourhood in Nairobi, Kenya, using all his hard-earned savings.
At first glance, Yusuf’s investment is a positive step. He now owns property in one of East Africa’s most exciting cities. However, there are two inherent problems with this investment, which I refer to as “investment that is not investment.”
The first problem lies in the disparity between Yusuf’s nice and expensive house in Nairobi and the living conditions of his family — his wife and children — who live in one of London’s social housing estates. Social housing is designed for low-income families, offering housing at lower rents than the market rate. Unfortunately, residing in such areas often comes with the drawbacks of crime, poor-performing schools, and an overall unfavourable neighbourhood environment.
While the family owns a new house in Nairobi, they endure the challenges of living disadvantaged London neighbourhood. This raises serious questions about the true value of Yusuf’s investment- and here is where the first fault lies.
The second problem stems from Yusuf’s unintended plans in relocating to Nairobi and making use of his new house. For him, the house serves only as a holiday villa( or a future home, which he will eventually use), while his family’s base remains in London. Some may argue that Yusuf could rent out the house in Nairobi and generate a return on his investment. However, this is not the case for Yusuf and many other Somalis in the diaspora who purchase residential properties in the Horn of Africa. At best, they use these homes for brief visits or temporary relocations for ‘Dhaqan-celis’ missions, only to return to their host countries after a few years.
This misplaces investment as the funds tied up in these unused homes could be better spent in the diaspora, such as buying homes in decent neighbourhoods.
Fortunately, there is a growing realisation among Somalis in the diaspora. Many are now making more considered investments by purchasing homes for their families and moving away from poor and crime-ridden neighbourhoods in search of better schools and improved social facilities, therefore, it is high time for many, including Yusuf, to critically reassess this zero-sum investment strategy.
