Zimbabwe diaspora remittances top US$880m in five months

Zimbabweans living abroad sent home more than US$880 million in the first five months of 2025, an eight percent increase over the same period last year, underscoring the growing importance of diaspora contributions to the country’s economy and development.

Central bank data shows remittances now account for 16.1 percent of foreign currency inflows, making them a critical pillar of financial stability.

With millions of Zimbabweans residing in South Africa, the United Kingdom, the United States and other countries, the diaspora has become a lifeline for households and a significant source of grassroots capital.

“Remittances are a growing line item in our national budget and there is a need to formalise these inflows because they are supporting the economy,” said Kevin Nyakotyo, head of sales and operations at Mukuru Zimbabwe, told the state-run Zimbabwe Broadcasting Corporation.

Beyond household support, a rising share of funds is being directed toward investment.

National Venture Capital Company of Zimbabwe chief executive Tinotenda Kambasha noted that remittances are increasingly financing residential construction and small to medium enterprises, reflecting renewed confidence in the country’s economic prospects.

The trend highlights the diaspora’s expanding role as a strategic partner in national development, providing foreign currency, stabilising the economy and contributing to Vision 2030 goals.

Analysts say formalising remittance channels will be key to maximising their impact and ensuring transparency as Zimbabwe seeks to harness diaspora capital for long-term growth.

JN/APA