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Minister Chinamasa

Business Reporter
REMITTANCES from Zimbabweans working abroad are forecasted to reach $960 million by the end of the year from $800 million last year. Presenting the 2016 national budget last week, Finance and Economic Development Minister Patrick Chinamasa attributed the positive growth trajectory in diaspora remittances to a number of policies instituted to tap into the Zimbabweans working abroad.

“A number of policies to mobilise diaspora remittances as an important source of liquidity in the economy have been instituted. “Official diaspora remittances have been growing from $300 million in 2009 to more than $800 million in 2014 and are projected at about $960 million in 2015,” he said.

The increase in diaspora remittances was also due to improved confidence by the diaspora community in sending money, through the formal system. This follows a review of the regulatory framework for money transfer agents, including permission to remit funds outside the country.

In line with the exchange control guidelines for authorised dealers, the Reserve Bank has awarded licences to 27 money transfer operators as the government moved in to harness diaspora resources.

Chinamasa said the number of money transfer agencies had also increased in response to the increased inflows. The operators were given the greenlight to operate starting in June. Diaspora remittances are critical to Zimbabwe’s economic recovery as they improve the liquidity situation in the economy.

Following the adoption of a multicurrency system in February 2009, the country continues to be affected by a tight liquidity situation. It is believed that nearly 70 percent of the remittances are coming from the neighbouring South Africa, which is speculated to hold the huge chunk of immigrant Zimbabweans.

The remainder comes from Zimbabweans living in the United Kingdom, Botswana, Australia, US, Canada, New Zealand and other regional and international countries. The government has acknowledged the diaspora is key contribution to the country’s economic growth and noted that many Zimbabweans survived on remittances between 2002 and 2008.