The remittances
come from a large pool of Zimbabweans living and working outside the country,
including South Africa, the United Kingdom, the United States, Australia,
Canada and the United Arab Emirates.
Diaspora
remittances are crucial for the economic and social well-being of countries of
origin, acting as a lifeline for families and communities, and contributing
significantly to development by supporting basic needs, education, healthcare
and even investments in agriculture and businesses.
In Zimbabwe,
remittances continue to offer a reliable source of extra income to millions of
local people who depend on their migrant relatives for financial aid back home
while at the same time ensuring that inflows of foreign currency are greater
than outflows, even when imports outnumber exports.
Typically,
remittances are sent to support ordinary living expenses, education, housing
development, healthcare and investments in businesses, among other critical
uses.
The inflows
provide significant liquidity to power various key sectors of the economy, at a
time when Zimbabwe has limited access to concessional funding from multilateral
lenders like the International Monetary Fund and the World Bank.
Decades-long
western sanctions also mean Zimbabwe has for long been excluded from many
global sources of funding needed to support key development programmes,
including loans to individuals.
As such, the
inflows are critical in boosting consumer aggregate demand in the domestic
economy and driving industrial activity.
Less than 2
million Zimbabweans live in the Diaspora, with South Africa being the most
popular destination.
A Zimbabwe
National Statistics Agency’s (ZimStats) 2022 census states that about 908,913
Zimbabwean migrants live and work in South Africa, while 47 928 are domiciled
in Botswana, 23 166 in the United Kingdom (UK), and the rest are spread around
the globe.
Recent data
from the UK Office of National Statistics shows that there has been a notable
increase in the number of Zimbabweans who were granted UK skilled work visas
since 2019.
According to
the Reserve Bank of Zimbabwe (RBZ), Diaspora remittances have consistently
played a vital role in bolstering the country’s economy, contributing
significantly to the nation’s total foreign currency inflows.
“In February
2025, Zimbabwe’s Diaspora remittances grew by 7,5 percent year-on-year,
totalling US$165 million, up from US$153,8 million in February 2024.
“The diaspora
remittances have continuously supported the economy, accounting for 17 percent
of the total foreign currency receipts,” said RBZ in its monthly statistics.
Last year,
Zimbabwe witnessed a significant surge in diaspora remittances, with inflows
reaching a record US$2,2 billion, representing a 22 percent increase from the
US$1,8 billion recorded in 2023.
The diaspora
represents a huge growth opportunity for the country, including bridging the
huge gap in infrastructure financing, while the inflows can be tapped to
fundraise for other development obligations through issuing diaspora bonds.
Beyond their
valuable contribution to the well-being of individual households, another
dimension of their positive impact on the country’s economy includes helping to
stabilise the foreign exchange market, which is critical to support economic
growth.
The central
bank says it will continue to explore incentives to boost the diaspora
remittance inflows, given the importance of remittances in the economy.
As the
Government continues to implement policies to support the diaspora community
and promote economic growth, diaspora remittances will remain a vital source of
foreign exchange to propel economic growth. Herald
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