DIASPORA remittances into Zimbabwe dropped by 11,4 percent
in 2018 to $619, 2 million from $699 million received in the prior year, the
Reserve Bank of Zimbabwe (RBZ) has said.
Diaspora remittances are a critical source of liquidity in
the economy with more families relying on the revenue stream for support from
their loved ones who work outside the country.
Presenting the 2019 Monetary Policy Statement on Wednesday,
RBZ Governor Dr John Mangudya said the drop in diaspora remittances was a result
of several factors.
“Diaspora remittances contributed $619,2 million, a decline
of 11,4 percent as compared to $699 million received in 2017. The decline of
diaspora remittances is mainly attributed to the preference to send in-kind
remittances by the diaspora and the interception of remittances in South Africa
by cross border traders,” he said. The send in-kind remittances are largely
informal and cannot be officially recorded.
Some have complained over inefficiencies in getting their
monies from banks and transfer agencies. Others generally shun informal
channels.
Dr Mangudya said South Africa contributes about 34 percent
of the total diaspora remittances which get into the country. He also said
international remittances declined by 19 percent from $1.4 billion received in
2017 to $1.1 billion received in 2018.
As part of measures to incentivise channelling of
remittances through formal channels, the RBZ in 2017 devised an incentive
package of up to 10 percent for domestic recipients. This was in addition to
the Diaspora Remittances Incentive Scheme (DRIS) introduced in 2016 that
benefited both the money transfer agents and the receiver of the funds on the
basis of a two percent and three percent split to reduce the cost of receiving
and sending remittances.
Recently, recipients of diaspora remittances in Bulawayo
have been struggling to access their money as banks and transfer agencies are
said to have a limited supply of foreign currency. Herald
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