News / National
Zim govt steps up efforts to tap into Diaspora remittances
19 Jan 2015 at 15:22hrs | Views
Government will soon hold workshops on the proposed National Diaspora Policy meant to harness investment from Zimbabweans working abroad, an official said last week.
The policy seeks to "facilitate the issuance of Diaspora Bonds and other financial instruments" to enable Zimbabweans living abroad to participate in the country's economic revival.
Speaking at the validation workshop for the starting a business study by the Zimbabwe Investment Authority and USAID-SERA, Deputy Chief Secretary to the President and Cabinet Colonel Christian Katsande said the policy is important in boosting Zimbabweans living in the diaspora's confidence to invest in the economy.
"We are putting together a national diaspora policy and we are hoping to hold a workshop soon. We believe that platform will allow Zimbabweans who are willing to contribute and participate like others are doing for their own nations, to our national development efforts.
"And clearly as we engage the diaspora, whether this is through the bond markets or through specific projects in the power sector or any other sector, they expect us to facilitate their participation.
When the workshop is called for we will be able to fully participate and make our contributions within the context of easing the platform of doing business," he said.
According to Development Foundation Zimbabwe, the Diaspora mitigated the impact of Asian economic crisis in the late 90s. China and India came up with three different business-oriented models in enlisting Diaspora contributions to development.
CBZ Bank issued its maiden $68 million Diaspora bond in 2012 which expired in April this year. It will issue its second $200 million bond, backed by Afreximbank in the first quarter of this year.
International money transfers in the country have been increasing and last year, diaspora remittances contributed $900 million, although this was a decline from remittances from 2013.
Remittances are expected to fall by 6 percent largely due to the projected slowdown of the South African economy, where many Zimbabweans are working. The other reason could be people are moving away from formal channels of sending money because of high money transfer costs.
Col. Katsande said Government is also finalizing joint venture guidelines to make it easier for investors to conduct business in the country.
"We are also working on finalisation of the guidelines relating to joint venture partnerships. I believe there is a process now within parliament were the Joint Venture Bill is being put together.
The idea being that a clear, consistent process of engaging investors or joint ventures should be put forward and we hope that such a process will make it easier for investors who want to participate," he added.
The policy seeks to "facilitate the issuance of Diaspora Bonds and other financial instruments" to enable Zimbabweans living abroad to participate in the country's economic revival.
Speaking at the validation workshop for the starting a business study by the Zimbabwe Investment Authority and USAID-SERA, Deputy Chief Secretary to the President and Cabinet Colonel Christian Katsande said the policy is important in boosting Zimbabweans living in the diaspora's confidence to invest in the economy.
"We are putting together a national diaspora policy and we are hoping to hold a workshop soon. We believe that platform will allow Zimbabweans who are willing to contribute and participate like others are doing for their own nations, to our national development efforts.
"And clearly as we engage the diaspora, whether this is through the bond markets or through specific projects in the power sector or any other sector, they expect us to facilitate their participation.
When the workshop is called for we will be able to fully participate and make our contributions within the context of easing the platform of doing business," he said.
CBZ Bank issued its maiden $68 million Diaspora bond in 2012 which expired in April this year. It will issue its second $200 million bond, backed by Afreximbank in the first quarter of this year.
International money transfers in the country have been increasing and last year, diaspora remittances contributed $900 million, although this was a decline from remittances from 2013.
Remittances are expected to fall by 6 percent largely due to the projected slowdown of the South African economy, where many Zimbabweans are working. The other reason could be people are moving away from formal channels of sending money because of high money transfer costs.
Col. Katsande said Government is also finalizing joint venture guidelines to make it easier for investors to conduct business in the country.
"We are also working on finalisation of the guidelines relating to joint venture partnerships. I believe there is a process now within parliament were the Joint Venture Bill is being put together.
The idea being that a clear, consistent process of engaging investors or joint ventures should be put forward and we hope that such a process will make it easier for investors who want to participate," he added.
Source - BH24
