UK overtakes SA as Zimbabwe's top remittance source

Zimbabweans living abroad sent home US$2.45 billion in 2025, with the United Kingdom overtaking South Africa as the country's largest source of diaspora remittances.

The figures have come into focus as Zimbabwe Diaspora Week ended on August 9, bringing together Zimbabweans from the United Kingdom, United States, Australia, South Africa and other countries.

Remittances have become a critical source of foreign currency for Zimbabwe, supporting household consumption, school fees, healthcare, property purchases and small businesses.

The latest figures underscore the growing economic importance of Zimbabweans living and working abroad, with the country's diaspora increasingly contributing to domestic economic activity through regular transfers.

Zimbabwe had already recorded a significant increase in remittance inflows early in 2025, with US$880 million received during the first five months of the year.

The full-year figure points to continued growth in money sent home as Zimbabweans abroad expand their employment, businesses and financial commitments.

The United Kingdom's emergence as Zimbabwe's largest source of remittances reflects the size and economic strength of the Zimbabwean community in Britain.

South Africa, however, remains a major source of remittances and continues to host one of the largest Zimbabwean populations outside the country.

The United States, Australia and other international markets also contributed significantly to the total, with the UK and South Africa together accounting for more than half of recorded remittance inflows.

The shift in the rankings highlights the increasingly diversified geographical sources of Zimbabwe's diaspora income.

Remittances are particularly important for Zimbabwe as the country continues to face foreign-currency constraints and limited access to affordable international financing amid an external debt burden of about US$2.7 billion.

Official estimates place remittances at more than 8% of the economy, making them Zimbabwe's second-largest source of foreign currency.

The Reserve Bank of Zimbabwe recorded an increase of about 14% in formal remittance inflows during 2025.

However, estimates can vary depending on how remittances are measured. Broader estimates by institutions such as the African Development Bank have placed the total at higher levels by incorporating additional flows that may not be captured through formal banking channels.

The continued growth in diaspora transfers nevertheless presents an important source of foreign-currency liquidity for Zimbabwe.

At the same time, policymakers face the challenge of ensuring that more remittances move through formal channels.

High transfer costs, exchange-rate disparities and concerns over trust in financial institutions can encourage some recipients and senders to use informal channels, making those flows more difficult to measure and reducing their contribution to the formal financial system.

The growing contribution of the diaspora has therefore strengthened calls for policies that make formal remittance channels cheaper, faster and more attractive to Zimbabweans abroad.

For households, the money remains a lifeline, while for the wider economy it provides much-needed foreign currency at a time when Zimbabwe continues to grapple with debt, liquidity and exchange-rate pressures.