Category: zimbabwe

Source: Diaspora remittances hit US$1,17b mark – The Standard

ZIMBABWE has received remittances amounting to US$1,17 billion from the diaspora community in the first nine months of this year, up 8% compared to the same period in 2022, new data from the central bank show.

Diaspora remittances — money sent by a person in a foreign land to his or her home country—have become one the biggest foreign currency sources for Zimbabwe after exports.

In the first half of 2023, diaspora remittances contributed 16% to the country’s total foreign currency receipts. Exports accounted for 55%.

The central bank data, exclusively obtained by Standardbusiness, show that in the period to August 2023, outward remittances—foreign currency sent outside the country—jumped by 19% to US$29,23 million.

Economist Stevenson Dhlamini said the growth in diaspora remittances was “impressive” considering the challenging global economic climate.

“Diaspora remittances serve as a lifeline for many Zimbabweans, supporting families, communities, and the overall economy,” he told Standardbusiness.

“This influx of funds can fuel economic growth, stimulate consumption, and improve livelihoods. These remittances can help alleviate poverty, fund education, healthcare, and infrastructure projects, and create opportunities for entrepreneurship and investment.”

He added: “However, let’s not lose sight of the bigger picture. While these figures are encouraging, they also highlight the need for sustained economic reforms and policies to attract more investments and create jobs within Zimbabwe itself.

“The surge in diaspora remittances is a testament to the resilience, generosity, and unwavering support of Zimbabweans abroad.”

Another economist Prosper Chitambara said the improvements are in line with the economic performance in the countries where the remittances are coming from.

“We’ve seen most countries are now out of high inflation especially the developed economies, their economies seem to be improving. So, I think that explains why there’s also been an improvement in remittances from Zimbabweans who are living in those economies,” he said.

“It’s, good for Zimbabwe. It helps to improve our balance of payment position which is critical in terms of sustaining macroeconomic stability and sustainability. So, you need to have a favourable balance of payment situation. In other words, what is actually coming to the country must outstrip what is actually leaving.”

Chitambara said the country’s receipts must be more than payments, adding that the remittances will go a long way in terms of contributing to incoming earnings in the economy, which is critical in terms of sustaining the macro-economy.

The post Diaspora remittances hit US$1,17b mark  appeared first on Zimbabwe Situation.

Source: Mangudya speaks on export data discrepancies – The Standard

RESERVE Bank of Zimbabwe (RBZ) governor John Mangudya has blamed the differences between the bank’s recorded export receipts and those of the Zimbabwe National Statistics Agency (ZimStat) on a time lag.

This comes after the central bank reported that over the nine months ended September 30, 2023, it recorded export receipts of US$3,6 billion, 9% lower than the comparable 2022 period.

However, according to ZimStat’s latest export results, during the same period, exports totalled approximately US$5,16 billion.

The difference between the RBZ and ZimStat’s figures amounts to about US$1,5 billion.

“ZimStat measures movement of goods through a CD1 form, the movement of goods through the border,” he told Standardbusiness.

“So, those figures of the RBZ and Zimstat are never the same at any given time. We measure what is in the bank, the export receipts that would have been paid.”

Currency or customs declaration form (CD1) specifies the value of exports, commissions and freight.

Mangudya gave an example of tobacco to say if US$100 000 of the cash crop was exported at any given time; ZimStat would record the value of that upon exiting the country.

However, the governor said the bank will measure what is actually paid into the nostro accounts of the exporter.

Now, since the export of goods takes time to reach its destination and payment typically happens upon receipt of those exports, the funds will take time to be registered in the bank account.

Thus, using the previous example, if US$100 000 worth of tobacco is exported in June, the payment would probably reflect about three months. This is because once exports have been declared on the CD1 forms and shipments made; the exporters are required to repatriate the export earnings into Zimbabwe within 90 days.

Next, once the export proceeds get into the exporter’s bank account, the central bank records this figure as of that day, meaning, if the US$100 000 gets into the nostro account in the second half of the year. that payment is recorded as such.

The payment will not be included in the total exports during the first half, despite the goods having been exported in June.

“The value of exports that is shipped doesn’t come back to the bank on the same day. There is a timing difference. So, the receipts which are being received today from the banks are not the same money as the exports on the day they were shipped so there are bound to be discrepancies,” Mangudya said.

“In Zimbabwe, we provide a law to say that goods that leave the country are paid for within a 90-day period, export credit terms. So, it’s not delay, per se, but credit terms.”

He said the credit is provided because the goods would have been cleared at the border before the actual payment was received.

Mangudya said the discrepancy comes as there is a major difference between gold exports that the bank records versus what is recorded in the destination country.

For example, ZimStat recorded gold exports of US$1,61 billion in 2021 while the central bank recorded it as US$1,7 billion.

But, the Observatory of Economic Complexity, the world’s leading data visualisation tool for international trade data, reported that the United Arab Emirate, alone, imported US$3,5 billion worth of gold from Zimbabwe in 2021.

Mangudya told the paper the discrepancy was due to “smuggling, as the bank only records what is received at Fidelity Printers and Refiners.”

However, licenses to ship out gold and proof of origin from the intended destination are still required from an exporter which typically comes from the RBZ in the Zimbabwe case.

The post Mangudya speaks on export data discrepancies  appeared first on Zimbabwe Situation.

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