Zim Diaspora remittances reach four-year high

By Davison Vandira

ZIMBABWE’s Diaspora Remittances have reached a four-year peak after the transfer of US$1,4 billion to become the third-largest source of foreign currency for the country.

According to the latest data released by Zimstats on Monday, diaspora remittances have more than doubled from the 2018 level, which was US$600 million to US$1,4 billion in 2021.

The remittances have been used for various purposes ranging from consumption, housing construction and business start-ups all contributing to enhanced economic activities for the benefit of the economy.

The significant improvement in remittances has been described by observers as a testimony to the attractiveness of the policy environment to invest at home.

“The improvement in Diaspora remittances is good news to Zimbabwe as this also increases forex availability to cater for the needs of individuals and the economy at large,” said Kudakwashe Mugova, an economic analyst.

“I am very much delighted with the level of remittances the country is realising, this will go a long way in bringing balance to the demand of forex and therefore brings sustainability to the strengthening of our local currency,” said Titus Mukove, an economist.

Developing economies across the globe are relying on diaspora remittances to strengthen the growth of their countries and Zimbabwe is leveraging on such financial sources to achieve its economic goals.