Diaspora (Commonwealth Union) _ Amidst the ongoing loss of skilled professionals to the diaspora, Zimbabwe is witnessing a notable upsurge in remittances, a trend that is proving beneficial for the country’s foreign currency inflow. This influx of remittances is playing a crucial role in enhancing Zimbabwe’s economic stability. Beyond its financial impact, this surge in remittances is also generating increased consumer demand. As numerous households receive economic support and empowerment through these diaspora remittances, the country is experiencing a positive effect on its overall economic landscape, underscoring the significant role that remittances play in shaping the nation’s economic dynamics.
In 2022, total international remittances, including those from non-governmental organizations (NGOs), reached $2.8 billion, marking a 16 percent increase from the $2.4 billion recorded in 2021. Within this total, diaspora remittances accounted for $1.66 billion, reflecting a 16 percent rise from the $1.43 billion in 2021.
Despite the loss of skilled professionals, such as lecturers, engineers, medical practitioners, and accountants to other countries, the growing diaspora community has proven beneficial for Zimbabwe. Many professionals in developed nations are earning enough to send family remittances back home, which is directly impacting household incomes and subsequently driving consumer demand within the country.
South Africa is the largest contributor to these remittances, accounting for 40 percent of the total, followed by the United Kingdom at 25 percent. The USA contributes 11 percent, and Australia contributes 6 percent.
Remittances have become a critical source of foreign direct investment for many developing economies, including Zimbabwe. The lack of work opportunities and unequal employer-employee relationships in the local labor market are key drivers of migration from Zimbabwe. The net migration rate for Zimbabwe in 2022 was negative, indicating more people leaving the country than entering.
Overall, while the loss of skilled professionals poses challenges for Zimbabwe’s development, the increase in remittances from the diaspora is providing a valuable source of income and support for many households in the country.
