Siphakeme .Mnindwa
Sikhulekelani Moyo, mskhulekelani16@gmail.com
GOVERNMENT’S ongoing engagement with Zimbabweans in the diaspora is paying dividends, with remittances from abroad increasing by an impressive 16,5 percent in the first nine months of 2024 compared to the same period in 2023.
In the 2025 National Budget statement, Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, highlighted the pivotal role of diaspora remittances in sustaining the country’s current account surplus.
The surplus is projected to close at US$2,49 billion in 2024 and improve slightly to US$2,51 billion in 2025.
“Diaspora remittances grew from US$1,6 billion recorded in the first nine months of 2023 to US$1,9 billion during the same period in 2024,” said Prof Ncube.
International remittances, comprising funds from Zimbabweans abroad and international organisations, have become a critical pillar of the national economy, significantly improving household livelihoods and bolstering liquidity.
Zimbabweans in the diaspora are encouraged to actively participate in the country’s economic growth through investments in capital markets, venture capital funds, pension schemes and various bonds issued by the Government or private sector players.
The diaspora community, estimated at over three million, is predominantly based in South Africa, the United Kingdom, Canada, Australia and the United States. These individuals contribute significantly to their families’ welfare back home, providing a vital lifeline for many.
Economist, Mr George Nhepera, noted that remittances are emerging as a key source of income for households, particularly during periods of economic slowdown and drought recovery.
“Remittances not only sustain families but also boost aggregate demand for goods and services, leading to increased sales and revenues for the retail sector,” he said. “
Additionally, a portion of these funds is channelled into housing construction in both urban and rural areas, aligning with the Government’s Vision 2030 objective of ensuring decent accommodation for all.”
The impact of remittances extends beyond household consumption.
The Reserve Bank of Zimbabwe (RBZ) reported a significant increase in international reserves, which rose from US$285 million in April 2024, when the Zimbabwe Gold-Backed Digital Token (ZWG) was launched, to approximately US$540 million by October 2024.
Prof Ncube attributed this improvement to a deliberate reserve accumulation strategy that has bolstered foreign currency and gold holdings. This strategy ensures adequate coverage for ZWG reserve money and contributes to financial stability.
“Moving forward, the Reserve Bank will continue building international reserves to provide a buffer for ZWG stability and maintain sufficient import cover,” said Prof Ncube.
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