Diaspora remittances drop

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INTERNATIONAL money transfers received by money transfer agencies (MTAs) and formal banking channels declined by 15% to $1,8 billion last year due to a rise in remittances sent via informal channels.

By Business Reporter

Presenting the monetary policy statement last week, Reserve Bank of Zimbabwe (RBZ) acting governor Charity Dhliwayo said money received through MTAs and formal banking channels has declined significantly while a substantial amount of Diaspora remittances continue to be transmitted through informal channels.

“Toward this end, work is currently underway to come up with appropriate facilities to effectively harness diaspora savings for the development of the
domestic economy,” Dhliwayo said.

She said RBZ was being guided by the 2014 National Budget in order to tap into Diaspora resources.

Dhliwayo added that the deterioration in the external sector position was due to lack of balance of payments support that further amplifies liquidity shortages obtaining in the economy.

“This has a constraining effect on banks’ ability to mobilise and avail credit to the productive sectors of the economy, thereby dampening economic growth prospects,” she said.

According to the 2014 budget statement, Finance minister Patrick Chinamasa said most countries in the world, including Zimbabwe’s regional neighbours, were benefiting immensely from financial transfers by their nationalities in the diaspora.

Chinamasa said Zimbabwe has a large part of its population living in the Diaspora and these were eager to contribute towards the development of their country.

“. . . The full statistics on Diaspora remittances and other contributions have been difficult to verify due, in some cases, to the informal channels of remittances used, many households survived on these remittances during the period 2002 to 2009,”Chinamasa said.

“Many Zimbabwean professionals, artisans and other skilled persons who left the country, and may not return soon, still want to invest and contribute to the country’s development process.”

He said during January to November 2013 Zimbabwe received $1,6 billion in remittances from the Diaspora.

Chinamasa said in order to harness the Diaspora market the government would formalise the platform for dialogue with the Diaspora through engaging the Zimbabwe Diaspora Home Interface Programme.

17 COMMENTS

    • Sending money to Zimbabwe is getting more expensive for Zimbabweans in the diaspora. The rand is loosing at staggering rate to the USD. For those living the US i think its even worse because 100 USD in America buys a lot more than it does in Zimbabwe.

      In my own opinion, Zimbabwe is being held hostage by a cartel that control and fix prices, everything is expensive in Zimbabwe.

      A litre of fuel, for example, costs 10 pula in Botswana which translate to about 1USD and Botswana is landlocked just like Zimbabwe. In Zimbabwe our fuel sells at USD1,50 a litre.

  1. But why are they denied to vote if they are contributing to the welfare of the country. It would make sense as well if they participate in the choice of government . I just feel their contribution will not decline in financial terms if their voice is heard in the ballot box.

  2. “Vari kutinyadzisa isu senyika, vana mai vari kusiya vana vacheche kunoita basa rekuchengeta tumbuya twechirungu kuEngland”- Josephine Chiwenga. “Regai vaende kunoshandiswa naTony Blair vachauya vakagara muma wheel chair” – Hon President Comrade Robert Mugabe. Nhasi maakuda mari yavo! Shame.

  3. We really want to invest in our country but tangai mabva mu Government. The issue of policy inconsistency and corruption have kept me and my Construction company away from Zim. My beloved nation could have been earning more than just remittances but because of bhora mugedhi crew we wont come there to invest.

  4. Zanu Pf hamuzive zvamnuoda…………. ndashaya mashoko…………………………..moda mari dzavo asi munoramba kuti vavhote………………ndokufunga kwemapenzika uku..

  5. And here is the jist of it all. All that money is not being used locally, the recipients will take it across borders to purchase their needs. Zim is like a big money transfer agencies. If we had real managers in our country especially in the parastatals, this money should be used for development (power, roads, etc) if only we could make our own products instead of importing.

  6. They mostly just want to support their families, and little to do with developing a country where you are regarded as a traitor…and accorded any rights to self determination. Its Mugabe’s backyard.

  7. zanu netsvina hapana musiyano . chikoro chakaendwa hapana chinobuda. So Biti was right zanu is very confused you change colour to suit you all the time. come elect ions you dont want diaspora to vote kana mawhina you need them and start destroying houses. Kana Mugabe ari serious about corruption he should show it now tiwone kuti chikoro chiripo kana kufunga kuripo. He will keep on protecting his ien pple why because he is part of it. corruption.

  8. Actually its us who are sending money to people in the Diaspora. Tikatengesa fodya worse. Haungaenzanisi mari yekurima neyekusuka chembere. Dzokai Dande.

  9. We should all strive to demonstrate the benefits of education which in effect we all Zimbabweans attained from Zimbabwe.

    Botswana fuel is BWP10 because it is subsidised. Instead of shouting obscenities at the Government about vote vs remittances lets organise ourselves to voice out the concern. Not to abuse media platforms like we are doing here.

    While you say ZANU=MAPENZI etc someone is saying ZIMBABWEANS = MAPENZI.

    LET’S GET OUR ACT TOGETHER.

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