Zimbabwe sees US$16.3 billion in diaspora remittances over a decade

Zimbabwe has experienced a significant influx of diaspora remittances, totaling US$16.3 billion over the past ten years, as more Zimbabweans living abroad send money back home to support their families amid challenging economic conditions. With over three million Zimbabweans residing outside the country - many fleeing a deteriorating economic environment - the impact of these remittances has become increasingly vital to the national economy.

In a recent presentation on the state of social services and poverty eradication in Zimbabwe, Public Service, Labour and Social Welfare Minister July Moyo highlighted the government's efforts to provide social protection for citizens through various policies and programs aimed at alleviating poverty, assisting vulnerable populations, and fostering economic growth.

Minister Moyo provided insights into the migration patterns of Zimbabweans, noting that the majority have settled in South Africa (approximately three million), with smaller communities in the United Kingdom (400,000), Botswana (200,000), and Australia (20,000). He acknowledged the crucial role the diaspora plays in supporting the Zimbabwean economy through remittances, which have become a significant source of foreign currency receipts.

"The remittances have contributed a considerable portion of foreign currency receipts, totaling US$16.3 billion between 2015 and 2023," Moyo stated. He specified the main source countries for these remittances, with South Africa leading at 47%, followed by the UK (23%), the US (11%), Australia (6%), Botswana (4%), and Canada (3%).

Moyo attributed part of the economic challenges facing Zimbabwe to sanctions that have led to a contraction of the formal sector, pushing many businesses to transition into micro, small, and medium enterprises. He emphasized that these enterprises play a vital role in job creation, contributing to Sustainable Development Goal 8 on decent work and economic growth, as well as Goal 1 on eradicating poverty.

The minister also pointed to the need for stronger labour market protections, as violations of labour laws persist across various sectors, including issues related to health and safety regulations and wages. A recent Responsible Mining Audit, launched by President Emmerson Mnangagwa, uncovered over 400 violations in the mining sector, underscoring the need for greater vigilance and collaboration to address these issues.

Minister Moyo reiterated the importance of a robust social protection system, which assures the provision of essential goods and services to society. He outlined the need for timely disbursement of resources by the Treasury to ensure that social protection programs are effective and sustainable.

"Our efforts are anchored on advancing our collaboration with the private sector, development partners, civil society organizations, and communities to uplift the material standards of life for the poor through social safety nets and job creation," Moyo added. He urged the Treasury to provide adequate funds promptly to ensure that social protection remains predictable, reliable, and efficient.

As Zimbabwe navigates these challenges, the support from its diaspora community remains a critical lifeline for many families, reinforcing the importance of remittances in the national economic landscape.