HARARE, May 27 (NewsDay Live) — Zimbabweans living abroad are now sending home an estimated US$3,5 billion annually, according to the African Development Bank (AfDB), cementing diaspora remittances as one of the country’s biggest economic lifelines at a time growth is expected to slow sharply.
The AfDB estimate is nearly US$1 billion higher than the US$2,45 billion recorded by the Reserve Bank of Zimbabwe (RBZ) last year, highlighting the increasing dependence of households and the broader economy on money sent from abroad.
In its 2026 Monetary Policy Statement released in February, the RBZ said Zimbabwe’s current account surplus widened from about US$500 million in 2024 to US$2,1 billion in 2025, driven largely by stronger exports and rising diaspora inflows.
The central bank said remittances reached US$2,45 billion in 2025, up 15,1% from the previous year.
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But the AfDB, in its African Economic Outlook 2026, suggested the actual scale of diaspora support may be far larger, estimating annual remittances per capita at US$2 310.
The bank said diaspora inflows were becoming increasingly critical in sustaining household consumption, supporting foreign currency liquidity and cushioning the economy against external shocks.
“Mobilising domestic savings and diaspora remittances, through deeper, more efficient financial and capital markets and appropriate blended-finance instruments, is essential,” AfDB said.
The growing importance of remittances comes as Zimbabwe faces weakening economic momentum after last year’s strong rebound.
The AfDB projects economic growth will slow from an estimated 7,6% in 2025 to 4,3% this year before edging slightly higher to 4,5% in 2027.
“In Zimbabwe, growth is projected to decline from an estimated 7,6% in 2025 to 4,3% in 2026, but to slightly recover to 4,5% in 2027,” the bank said.
“The projected growth slowdown in 2026 reflects the country’s high exposure as a net energy importer, the moderating effect of increased freight and logistics costs on domestic economic activity, and softer external demand.”
The bank warned that Zimbabwe’s fragile external position continued to constrain long-term investment and economic stability.
“The US$7,7 billion external debt arrears burden has weakened creditworthiness and deepened debt overhang,” AfDB said.
“Strengthening debt management, transparency, and cooperation with multilateral development banks is critical to restoring access to concessional financing.”
Against that backdrop, AfDB urged authorities to focus on domestic resource mobilisation, with diaspora remittances increasingly viewed as a strategic source of foreign currency and investment capital.
The bank also noted that Zimbabwe’s highly informal economy — estimated at 76,1% of GDP — underscored the need for broader reforms to deepen financial inclusion and expand the formal tax base.
“Cross-country patterns underscore the heterogeneity in the integration of the informal sector,” AfDB said.
“In several economies — such as Zimbabwe, Nigeria and Tanzania — the informal sector accounts for more than half of GDP, reflecting the key role of informal activity in production.”
