Unlocking investment opportunities: What you need to know about Zimbabwe’s offshore remittance framework
BY NATASHAA MUNJOMA
As the global economy becomes increasingly interconnected, the case for diversifying corporate and personal wealth is particularly compelling in countries characterised by economic volatility and policy uncertainty, Zimbabwe being no exception.
Offshore investments can provide a more stable route to preserving wealth; however, this framework is often underutilised due to limited awareness and persistent misconceptions about exchange control requirements for offshore remittances.
Understanding the legal framework
Zimbabwe’s exchange control system is primarily governed by the Exchange Control Act, supplemented by subsidiary regulations and operationalised through Reserve Bank of Zimbabwe (RBZ) policy directives issued from time to time.
The Act provides the overarching legal basis for the regulation of cross-border financial transactions. In particular, section 2 enables the making of Exchange Control Regulations to govern dealings in foreign currency, among other activities.
The Exchange Control Regulations generally prohibit the externalisation of funds except through an authorised dealer. In practice, RBZ policy directives provide additional guidance on the scope within which individuals may transact.
Under RBZ directive RXD2/2025, resident individuals are permitted to remit funds offshore through an authorised banking institution. The thresholds for this type of remittance are a maximum of US$5,000 per transaction, with a cumulative cap of up to US$50,000 per individual per annum. This means that individuals with free funds may invest in one or more of the following vehicles: offshore accounts; offshore money markets; external stock exchanges; residential immovable property; and medical insurance, educational, and life assurance policies.
While these are investment types that many Zimbabweans would typically consider in the domestic market, some remain cautious due to prior losses following currency changes (including conversions affecting life assurance policies) and recurring policy shifts that can impact the stability of long-term financial decisions.
Wealth preservation through compliance
It is important to dispel misconceptions about foreign currency remittances so that individuals can take full advantage of the legal framework.
The law penalises illegal remittances—cross-border transactions conducted outside the regulated framework, for example by not using authorised dealers, exceeding prescribed limits, or otherwise contravening exchange control requirements.
Compliant individuals may benefit from building offshore investment portfolios in stable jurisdictions or taking out life insurance policies with greater certainty regarding both the payout amount and the currency in which it will be made. Overall, the framework enables individuals to participate in global markets in a legal and structured manner.
Although offshore remittances may be increasingly accessible, they should not be treated casually, as several factors require careful consideration.
Individuals must comply with all regulatory requirements, including transacting through registered banks and providing the necessary KYC/CDD information for due diligence.
It is also important to understand the relevant tax implications in both Zimbabwe and the destination jurisdiction, ideally with support from qualified tax advisers.
Offshore investments should be aligned to the individual’s risk profile, supported by appropriate due diligence when selecting markets, products, and jurisdictions—often with the assistance of investment professionals.
Finally, wealth preservation is not only about securing assets; it also requires integrating the various tools into a coherent long-term wealth strategy.
How BDO Zimbabwe can help
BDO offers holistic wealth advisory services, including strategic investment structuring, offshore jurisdiction and investment-partner sourcing, regulatory compliance support, and estate and succession planning.
Professional advisory support helps ensure offshore transactions are compliant with legal requirements and aligned to long-term financial objectives—enabling individuals to diversify risk and access a wider range of investment instruments.
As remittance limits are set out in RBZ directives and may change over time, BDO also provides ongoing advice informed by regulatory updates, economic conditions, and geopolitical developments that may affect the remittance of funds and the suitability of different investment choices.
DISCLAIMER
The views and opinions expressed in this article are those of the author, Natasha Munjoma , a Legal and Compliance Executive at BDO Zimbabwe and do not necessarily reflect the official policy or position of BDO Zimbabwe. This article is intended for informational purposes only and should not be construed as legal, tax, or financial advice.
For further information, please contact any of our specialists below:
Maxwell Ngorima
Tax Partner
+ 263 242703876
mngorima@bdo.co.zw
Natasha Munjoma
Legal and Compliance Executive
+263 779 569 199
nmunjoma@bdo.co.zw
