UK overtakes South Africa as Zimbabwe's top source of remittances

The United Kingdom is poised to become Zimbabwe's largest source of remittances in 2025, surpassing South Africa for the first time, according to Finance, Economic Development and Investment Promotion Minister Mthuli Ncube.

The milestone marks a major shift in migration and income patterns among Zimbabweans abroad, reflecting the growing influence of the diaspora on the national economy.

Official data shows that diaspora remittances have surged by 195% over the past five years - from US$922 million in 2019 to US$2.58 billion in 2024. Projections indicate inflows could reach US$2.72 billion this year and exceed US$2.75 billion by 2026.

In the first quarter of 2025, the UK accounted for 28.6% of total remittance inflows (around US$779 million), narrowly overtaking South Africa's 27.5% (approximately US$748 million).

Ncube said the trend underscores the changing face of Zimbabwe's diaspora, driven by new waves of migration to Europe and beyond.

"The structure of our diaspora has evolved significantly. While South Africa remains home to the majority of Zimbabweans abroad, higher earnings and formal employment in the United Kingdom are now translating into larger remittance flows," he said.

Zimbabwe's recurring economic challenges - including hyperinflation, currency volatility, and rising unemployment - have spurred large-scale emigration over the past decade. Increasing numbers of professionals, healthcare workers, and skilled labourers have relocated to the UK, contributing to the sharp rise in remittance inflows.

While roughly 80% of Zimbabwe's diaspora still resides in South Africa, the country's share of total remittances has steadily declined from 38.3% in 2021 to 27.5% in 2025, as the UK's contribution rose from 24.7% to 28.6% over the same period.

Remittance inflows from other regions are also expanding. The United States accounted for 11.2% (around US$305 million), while Australia contributed 5.5% (about US$150 million). Canada and Botswana made smaller but notable contributions of 2.1% (US$57 million) and 2.0% (US$54 million), respectively.

Analysts say remittances have become a critical lifeline for Zimbabwe's struggling economy, cushioning households against economic hardship and helping sustain domestic consumption, investment, and foreign currency reserves.