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Diaspora remittances surge 7,5% in February
26 Mar 2025 at 06:46hrs | Views
Diaspora remittances to Zimbabwe grew by 7.5 percent in February 2025, reaching US$165 million, up from US$153.8 million in the same month last year. The increase highlights the continued importance of remittances as a key source of foreign currency inflows that support the economy.
The remittances are sent by Zimbabweans living and working in various countries, including South Africa, the United Kingdom, the United States, Australia, Canada, and the United Arab Emirates. These funds play a crucial role in sustaining families and communities by supporting essential needs such as education, healthcare, housing, and business investments.
Remittances remain a reliable source of extra income for millions of Zimbabweans, ensuring that foreign currency inflows exceed outflows even when imports surpass exports. The inflows provide significant liquidity, benefiting key sectors of the economy at a time when Zimbabwe faces limited access to concessional funding from international lenders such as the International Monetary Fund (IMF) and the World Bank.
Western sanctions, which have restricted Zimbabwe's access to global financial resources for decades, further underscore the importance of remittances in boosting domestic consumer demand and driving industrial activity. The funds also contribute to stabilizing the foreign exchange market, an essential factor for economic growth.
According to the Zimbabwe National Statistics Agency (ZimStats) 2022 census, fewer than 2 million Zimbabweans reside in the diaspora. The largest proportion, approximately 908,913, is based in South Africa, followed by 47,928 in Botswana and 23,166 in the United Kingdom. Recent UK Office of National Statistics data indicates a significant rise in Zimbabweans securing UK skilled work visas since 2019, further increasing remittance potential.
The Reserve Bank of Zimbabwe (RBZ) has acknowledged the vital role of diaspora remittances in sustaining the economy. "In February 2025, Zimbabwe's diaspora remittances grew by 7.5 percent year-on-year, totaling US$165 million, up from US$153.8 million in February 2024. These remittances have continuously supported the economy, accounting for 17 percent of total foreign currency receipts," RBZ stated in its monthly report.
In 2024, Zimbabwe recorded a remarkable surge in diaspora remittances, with inflows reaching a record US$2.2 billion, marking a 22 percent increase from the US$1.8 billion recorded in 2023. The government sees the diaspora as a significant economic asset, with potential avenues such as diaspora bonds being explored to fund infrastructure projects and other development initiatives.
As the government implements policies to support the diaspora community and enhance economic stability, remittances will remain a vital source of foreign exchange, helping to propel Zimbabwe's economic growth.
The remittances are sent by Zimbabweans living and working in various countries, including South Africa, the United Kingdom, the United States, Australia, Canada, and the United Arab Emirates. These funds play a crucial role in sustaining families and communities by supporting essential needs such as education, healthcare, housing, and business investments.
Remittances remain a reliable source of extra income for millions of Zimbabweans, ensuring that foreign currency inflows exceed outflows even when imports surpass exports. The inflows provide significant liquidity, benefiting key sectors of the economy at a time when Zimbabwe faces limited access to concessional funding from international lenders such as the International Monetary Fund (IMF) and the World Bank.
Western sanctions, which have restricted Zimbabwe's access to global financial resources for decades, further underscore the importance of remittances in boosting domestic consumer demand and driving industrial activity. The funds also contribute to stabilizing the foreign exchange market, an essential factor for economic growth.
According to the Zimbabwe National Statistics Agency (ZimStats) 2022 census, fewer than 2 million Zimbabweans reside in the diaspora. The largest proportion, approximately 908,913, is based in South Africa, followed by 47,928 in Botswana and 23,166 in the United Kingdom. Recent UK Office of National Statistics data indicates a significant rise in Zimbabweans securing UK skilled work visas since 2019, further increasing remittance potential.
The Reserve Bank of Zimbabwe (RBZ) has acknowledged the vital role of diaspora remittances in sustaining the economy. "In February 2025, Zimbabwe's diaspora remittances grew by 7.5 percent year-on-year, totaling US$165 million, up from US$153.8 million in February 2024. These remittances have continuously supported the economy, accounting for 17 percent of total foreign currency receipts," RBZ stated in its monthly report.
In 2024, Zimbabwe recorded a remarkable surge in diaspora remittances, with inflows reaching a record US$2.2 billion, marking a 22 percent increase from the US$1.8 billion recorded in 2023. The government sees the diaspora as a significant economic asset, with potential avenues such as diaspora bonds being explored to fund infrastructure projects and other development initiatives.
As the government implements policies to support the diaspora community and enhance economic stability, remittances will remain a vital source of foreign exchange, helping to propel Zimbabwe's economic growth.
Source - newzimbabwe
