Zimbabweans in the diaspora remit $400 million yearly

An incomes and expenditure survey says Zimbabweans staying abroad are remitting $400 million per year, the bulk of which is directed towards household consumption.

The survey shows that of the $400 million being brought back by Zimbabweans abroad, households in urban areas receive 79,3 percent of the share while rural households account for 20.7 percent.

The incomes study that was carried out by the Zimbabwe National Statistics Agency (ZIMSTAT) between January 2011 and December 2012 shows that on average, individuals receive remittances from abroad amounting to $2, 269 000 per year which translates to $189 per month.

An industrialist, Mr Josephat Munyongani said funds being brought back by Zimbabweans from the diaspora should be used to recapitalise productive sectors of the economy.

"What we expect is that such funds should be used to increase output for firms," said Munyongani.

The study says funds from Zimbabweans abroad are mainly being used for consumption instead of productive purposes.

Local financial institutions are targeting Zimbabweans abroad to bring back more funds by taking part in short to long term bonds aimed at raising capital to restore macro-economic stability.