Diaspora remittances are projected to surge past US$3,2 billion this year, cementing their position as a critical source of foreign currency for the economy, after inflows jumped 41,4 percent to US$1,55 billion in the first half, Finance Minister Professor Mthuli Ncube has said.
Prof Ncube presented the figures in his State of the Economy report at the ZANU PF National People’s Conference in Chinhoyi last week, noting the sector’s growth as part of the broader performance of the economy.
“Money sent home by Zimbabweans abroad remains strong. Diaspora remittances surpassed US$1.55 billion in the first half of 2026, 41.4% higher than the first half of last year,” said Prof Ncube.
“Remittances are projected to exceed US$3.2 billion in 2026 and US$3.4 billion in 2027. These flows are a reliable anchor for the economy and the exchange rate,” he told delegates.
Sustained growth reinforces the importance of diaspora earnings in supporting household incomes, financing education and healthcare, and covering other family expenses, while also providing foreign currency that can circulate through the formal economy.
The changing geographical composition of remittance inflows is another notable development, with the United Kingdom emerging as Zimbabwe’s largest source market in the first quarter of 2026.
The UK accounted for 28,6 percent of remittances during the period, up from 24,9 percent in 2024 and 22,3 percent in 2022.
South Africa, historically the dominant source of diaspora inflows, contributed 27,5 percent in the first quarter of 2026, down from 31,2 percent in 2024 and 38,3 percent in 2021.
The shift points to the growing importance of Zimbabweans based in the UK and other overseas markets, while South Africa’s share has steadily declined over the period.
The United States contributed 11,2 percent of remittances in the first quarter of 2026, compared with 9,8 percent in 2024, while Australia accounted for 5,5 percent.
Botswana contributed 2 percent, while Canada accounted for 2,1 percent.
Other markets collectively represented 23,1 percent, underlining the increasingly diversified geographical sources of diaspora funds.
The projected rise in remittances presents an opportunity to strengthen the link between diaspora earnings and productive domestic investment.
While transfers traditionally support household consumption, greater mobilisation of these inflows into savings, housing, small businesses and other productive ventures could expand their contribution to economic activity and employment creation.
The latest projections also show the importance of efficient and affordable formal remittance channels to encourage more funds to enter the regulated financial system.-herald
