Diaspora remittances up 48% in 10 months, says RBZ

DIASPORA remittances increased by 48 percent to reach US$760 million in the 10 months to October 2020 compared to the same period last year, according to the Reserve Bank of Zimbabwe (RBZ).

The apex attributes this to the switch to formal channels amid Covid-19 restrictions. Diaspora remittances are a critical source of forex in the country together with exports.

The World Bank had predicted that remittance inflows to Sub Saharan African countries will drop by 23,1 percent from $48 billion in 2019 to $37 billion in 2020 in the wake of the Covid-19 economic crisis.

Zimbabwe is among the leading recipients of remittances in the Comesa region alongside Egypt, Kenya, Tunisia and DR Congo.

The country also leads in terms of contribution of remittances to Gross Domestic Product at 13,5 percent, according to the Comesa secretariat.