Set up branches in diaspora financial institutions told

THE diaspora community has called for the establishment of investment units by financial institutions, investment firms and real estate companies to facilitate investments, boost remittances and prevent fraud.

The community significantly contributes to the economy through financial and social remittances. International remittances, from Zimbabweans abroad and international organisations play a vital role in providing liquidity to Zimbabwe’s economy, benefiting livelihoods nationwide.

It is estimated that around three million Zimbabweans live in the diaspora and regularly send money back home to support their families. In his inaugural Monetary Policy Statement in April, Reserve Bank of Zimbabwe (RBZ) Governor, Dr John Mushayavanhu said diaspora remittances, through official channels, registered a 16 percent increase to US$1,873 billion last year, from US$1,617 billion received during the same period in 2022.

The Financial Markets Indaba and CBZ Holdings recently held an investment forum to attract investment inflows from the United Kingdom diaspora community. The Zimbabwe Business Networking Forum was held on 11 July and was designed to bridge connections between the Zimbabwean Diaspora and local stakeholders, fostering an environment conducive to increased investment activities.

The UK Diaspora contributes significantly to Zimbabwe’s economy, with over US$500 million in annual remittances and direct investments, underscoring their importance as an economic constituency. Advocate Pardon Tapfumaneyi who participated in the engagement told Business Chronicle yesterday that the diaspora community is keen on doing enhanced business with local institutions in various diaspora zones noting that there is huge revenue potential in the diaspora that the financial sector could tap into.

He said channelling investments through proper channels boosts revenue inflows and provides financial safety.B “We would want to see Zimbabwean banks participating across the globe, opening branches in the diaspora. Remittances from the diaspora community have been huge over the years running into billions of dollars,” said Adv Tapfumaneyi.

“If the Zimbabwean institutions, particularly, banks do not have a presence in the diaspora, they are losing out in terms of revenue and deposits. We have Asian banks here (in the United Kingdom) that have followed their population to open banks in the diaspora and that can be done by our institutions back home.”

Financial Markets Indaba (FMI) is a global investment conferencing platform and aim to mobilise investment through convening leading global institutional investors, corporate leaders, industry experts, diaspora and our team of analysts to explore sector and market trends and identify significant investment opportunities

Another participant, Ms Nyarai Tazura, also appealed to established real estate firms to set up branches in the United Kingdom Ms Tazura said scores of people have lost significant investments to bogus estate agents. “When real estate firms with solid track records have a physical presence in the diaspora, that would reduce the level of doubts that is among some people in the diaspora. Scores have been duped before for bogus firms.

Therefore, their presence will instill confidence and help accelerate investments in the property market back home,” she noted. In her presentation, Patience Patongamwoyo, Managing Director and Licensee Seeff Properties Zimbabwe said the residential property market in Zimbabwe is driven by a growing population and urbanisation trends.

She noted that there is a demand for affordable housing, particularly in major cities such as Bulawayo and Harare adding that the commercial property market is also on the rise, with office space in high demand from businesses returning to the country.

“The industrial property market is poised for growth, as Zimbabwe seeks to revive its manufacturing sector. There are also opportunities for investment in land for development, particularly in areas with infrastructure development plans,” she said. She told delegates that before investing in Zimbabwe property, it is important to conduct thorough market research to get an understanding on the different property types, price trends and potential risks and rewards.

Keynote speaker, Lawrence Nyazema, who is chief executive of CBZ Holdings Limited, provided a comprehensive overview of Zimbabwe’s economic landscape and emerging market trends highlighting the country’s robust population growth rate of 2,2 percent per year, compared to global and African averages of 1,1 percent and 1,7 percent, respectively.

“This rapid growth signifies future demand across housing, food, education and healthcare sectors, presenting numerous investment opportunities. Zimbabwe’s domestic market is undergoing significant changes, with a growing preference for value-added products, environmentally sustainable offerings and an upmarket lifestyle,” he said.

The diaspora community has been calling on the Government to facilitate their investment in areas such as mining, agriculture, tourism and infrastructure development, among others. On the other hand, under President Mnangagwa, the Second Republic has sought to engage and re-engage with all nations and through the diaspora community, has made contacts and built gainful business partnerships in different countries where they live.-chroncile