‘Diasporans should invest beyond family consumption’

ZIMBABWEANS in the diaspora should be assisted to channel their resources beyond domestic consumption as they have a key role to play in transforming the economy.

Economic analysts said this as they urged the Government to review policies in order to attract investment from the diaspora community.

Zimbabwe is among the leading recipients of remittances in the Comesa region alongside Egypt, Kenya, Tunisia and the Democratic Republic of Congo.

Economic analysts said in separate interviews that diaspora remittances could be harnessed to steer robust domestic investments.

The potential from this pool of resources is great given that the diaspora community has over the years sustained families back home even in times of hardships.

Mr Trust Chikohora, who chairs the Political Actors Dialogue economic committee said remittances from the diaspora, which have been hovering around US$1 billion, were part of Zimbabwe’s biggest foreign currency earners.

“The economic activity that we have managed to achieve so far has been driven to a significant extent by diaspora remittances,” he said.

Mr Chikohora said the country could earn much more than it is getting now if a framework that attracts diaspora investors is set up.

According to Comesa, Zimbabwe was among leading states in terms of contribution of remittances to Gross Domestic Product at 13,5 percent. An estimated three million Zimbabweans are believed to be in the diaspora with the majority of them earning decent incomes.

“There is a need to embrace the diaspora to make them feel they are part of the country, making them comfortable and confident with what is happening in Zimbabwe so that they can even invest in Zimbabwe,” said Mr Chikohora.

In other countries diasporans have become key drivers in setting up businesses in various sectors of the economy as well as investing in capital markets, venture capital funds and pension funds, various bonds by the Government or the private players.

Mr Chikohora said most diasporans were now economically well-connected and can even leverage on this to drive huge economic growth in Zimbabwe.

“The challenge is on authorities to come up with the right policies and strategies on how we can make use of this huge diaspora dividend,” he said.

“I believe when we eventually get our act together, the diaspora is going to be one of the major drivers of the economic revival in Zimbabwe.”

Financial markets analyst Mr George Nhepera concurred saying Zimbabweans in the diaspora could bring a huge change riding on their exposure from developed states in the European Union and countries such as the United Kingdom and the United States of America.

“These countries have well developed banking and financial systems with sound economic fundamentals that are stable and predictable.

“We should continue realigning our policies with the same countries so as to attract significant funding and investment from our good Diaspora community,” said Mr Nhepera.

He said countries such as Kenya, Rwanda and Ethiopia have done well in implementing policies most favourable to their people living abroad.

“There’s no harm in learning from them for the good of the country,” he said.

International remittances, which comprise transfers by international organisations for humanitarian assistance and the Zimbabwean diaspora, are one of Zimbabwe’s critical sources of foreign currency.

Another economic commentator, Mr Peter Mhaka said the Second Republic through its international re-engagement drive should embark on promotions or campaigns to encourage diasporans to invest their incomes in different sectors of the economy other than just focusing on remittances for family support. —chronicle.cl.zw