Diaspora remittances prop up Zim’s economy
LIVINGSTONE MARUFU and SAMANTHA MADE
Cash-wired into Zimbabwe by nationals living and working abroad have emerged as the country’s most reliable economic lifeline, cushioning the economy against weakening mineral revenues and increasingly anchoring growth, investment, and household welfare, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has said.
In assessing the state of the economy, Ncube said remittance inflows—now powering everything from real estate development and rural infrastructure to SME growth and financial inclusion—are expected to drive performance in the final quarter of 2025 and into 2026. Analysts say these inflows have evolved from “consumption money” into one of the country’s most transformative financial forces.
This surge comes as Zimbabwe’s multi-billion-
Investment analyst Enoch Rukarwa told Business Times that diaspora remittances are stimulating both consumption and investment.
“We have been benefiting immensely from diaspora remittances. They stimulate consumption, aggregate investment and reduce poverty levels… Over time these funds filter into investments, stimulating economic growth,” Rukarwa said.
Remittances surged from US$922 million in 2019 to US$2.58 billion in 2024, a staggering 195% cumulative growth, and are projected to reach US$2.72 billion in 2025 and US$2.75 billion in 2026.
The United Kingdom contributes 28.6%, South Africa 27.5%, the United States 11.2%, with the remainder of the world accounting for 23.1%.
Economist Titus Mukove said confidence in the economy and improved investment appetite among diaspora communities are lifting inflows.
“There is a boom in the construction industry due to diaspora remittances. SMEs are sustained by these funds… They are boosting the supply side, increasing GDP, and creating employment,” Mukove said.
He added that remittances are reinforcing Zimbabwe’s foreign exchange reserves, stabilising the currency and supporting the financial system.
Economist Malone Gwadu said remittances strengthen both household welfare and macroeconomic stability.
“Foreign currency liquidity is enhanced, aiding currency management and reducing vulnerability… But more work is needed to keep these flows in the formal system,” he said.
Economist Vince Musewe highlighted the economy’s dependence on diaspora dollars:
“They boost disposable incomes and aggregate demand. Without them this economy would have collapsed,” Musewe said.
Investment analyst Tafara Mtutu attributed the rise to the growing Zimbabwean diaspora—estimated at 4 million people—and increasingly efficient transfer systems.
Zimbabwe Women’s Resource Centre and Network economist Esther Mapungwana said remittances could rise further as more people relocate.
“If remittances increase, fiscal revenue increases,” she said, while cautioning that these flows alone cannot meet national development needs.
Currently, diaspora inflows account for 15.1% of total foreign currency receipts, underscoring their pivotal role in stabilising household consumption and liquidity.
Economist Rogers Dhliwayo said the next phase should be shifting remittances toward investment.
“If we create safe, high-yield investment products—diaspora bonds, funds, favourable policy frameworks—diasporans can participate in national development beyond family support,” he said.
Economic analyst Stevenson Dhlamini added that reducing transfer charges could further boost formal inflows.
A powerful sign of the shifting landscape is the property market surge. Tiger, the Zimbabwe Stock Exchange–listed real estate investment trust (REIT), recently said over US$1.5 billion in diaspora remittances flowed into real estate in the first eight months of 2025.
Analysts say this renewed capital flow reflects a broader macroeconomic trend: real estate has re-emerged as a preferred inflation hedge amid persistent exchange-rate volatility.
While stimulating construction, job creation, and allied industries such as steel and cement, analysts caution that capital is gravitating toward defensive assets rather than export-oriented ventures essential for productivity and competitiveness.
The government has reiterated its commitment to strengthening engagement with Zimbabweans abroad as part of its economic diplomacy drive.
Officials say the diaspora will play a central role in achieving Vision 2030, with policy frameworks being developed to channel inflows toward national development.
