Story by Owen Mandovha
AS Zimbabwe joined the global community in commemorating the International Day of Family Remittances on Friday, it emerged that diaspora remittances now account for more than 8% of the country’s Gross Domestic Product (GDP), underlining their growing importance to the economy.
Remittances have become a critical source of household income and national revenue, with Zimbabwe receiving more than US$2 billion in diaspora inflows last year, making them the country’s second-largest source of foreign currency.
Stakeholders from across the remittances value chain gathered in Harare for commemorations organised by the International Organisation for Migration (IOM), where discussions focused on the role of migrant earnings in strengthening household resilience and supporting economic development.
“In rural areas on average, each household has one migrant, and these are sending money back home, which is helping to harness incomes, so we cannot underestimate this essential block of economic actors,” Technical Specialist at IFAD, Dr Leonard Makuvaza said.
The Reserve Bank of Zimbabwe (RBZ) says it is strengthening the regulatory environment to encourage increased remittance inflows and maximise their contribution to economic growth.
“Remittances are now accounting for 8% of the country’s GDP and the second biggest foreign currency earner at US$2 billion so we are putting a regulatory framework that enhances more remittances coming into the country,” RBZ Deputy Director, Dr Dennis Chirata, said.
The International Organisation for Migration described migrants as a vital economic force whose contributions continue to support families and communities.
“The migrant community is a resilient one and generates a lot of income, which is sent back home. This is significant for economies and for Zimbabwe, many families are dependent on their relatives working in other countries,” Head of Programmes Development at IOM, Mrs Rita Gwarada said.
Leading remittance service providers say the funds are increasingly financing productive investments across various sectors of the economy.
“We are the biggest remitter of foreign currency in Zimbabwe at one billion dollars, and we have witnessed many projects being undertaken through funding from these remittances,” Mukuru Director, Mr Mark Wilson said.
Government engagement with the diaspora community has also been credited with helping to drive remittance growth, with inflows now playing an increasingly significant role in supporting livelihoods, investment and economic development.
