An estimated three million Zimbabweans are believed to be
living in the diaspora and they regularly send money back home to sustain their
families.
Presenting the 2021 Mid-Term Budget in Parliament
yesterday, Finance and Economic Development Minister, Professor Mthuli Ncube,
said diaspora remittances and other transfers were projected to continue
driving the current account balance.
“During the first-half of the year, diaspora remittances
are estimated at US$746,9 million compared to US$288,7 million received during
the same period last year. “Remittances are projected to reach US$1,3 billion
by year end,” he said.
The continued improvement in diaspora remittances has been
attributed to the liberalisation of the use of free funds in the country and
increased channelling of remittances through formal channels.
“Diaspora remittances and other transfers, which constitute
the secondary income account are projected to continue driving the current
account balance as was the case in 2020.
“Personal transfers from Zimbabweans in the diaspora are
expected to remain steady and resilient as the economies in key source markets
recover from the Covid-19 induced slow-down, allowing them to invest in assets
back home,” said Prof Ncube.
Economic analysts have urged the Government to craft
policies that attract Zimbabweans in the Diaspora to channel their resources
beyond domestic consumption as they have a key role to play in transforming the
economy.
Countries such as China and India, for instance, offer
different business-oriented incentive models that enlist diaspora contributions
to development.
These countries have succeeded in becoming among the
leading global economies without reliance on foreign direct investment only.
Zimbabweans in the Diaspora stand a chance to participate
in various sectors of the economy as well as investing in capital markets,
venture capital funds and pension funds.
The country has a strong skilled and non-skilled Diaspora
population mainly in South Africa, Botswana, United Arab Emirates, New Zealand,
the United Kingdom, Canada, Australia, and the US. Herald
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