Foreign currency receipts dip in Feb due to weak exports: RBZ

HARARE – Zimbabwe’s foreign currency receipts for the first two months of the year ended February dipped by 2.4% to US$2.02 billion, compared to US$2.07 billion during the same period last year. The decline is largely attributed to a 5.6% drop in export earnings, which contributed 59.6% to the total foreign currency inflows.

According to the statistics availed to FinX from the Reserve Bank of Zimbabwe, export earnings reached US$1.20 billion, down from US$1.27 billion recorded last year. This was mainly driven by lower gold output in February and a slowdown of manufactured exports.

Despite this decline, Diaspora remittances increased by 6.8% to US$352.1 million, contributing 17.5% to the total inflows and reflecting the ongoing support from Zimbabweans abroad, which plays a critical role in stabilising domestic foreign currency availability.

Loan proceeds also increased by 10% to US$226.1 million as mostly the private sector remains engaged in seeking financing, which is essential for various business operations.

International organisations and NGO receipts grew by a modest 3.3% to US$194.9 million and are expected to slide further for the remainder of the year due to an ongoing rethink of global aid by western countries.

Foreign investment starkly declined by 39% to US$23.5 million, a concerning trend given the need for capital to drive growth and development in various sectors. Last year, foreign investments stood at US$38.5 million. Income receipts also plummeted by 40.4% to US$18.6 million, exacerbating concerns regarding the country’s earnings from investments, while it also reflects challenges in attracting and retaining foreign investments that yield income for the economy.

Zimbabwe has seen a steady increase in foreign currency receipts in recent years, consistently exceeding US$10 billion annually since 2022. In 2024, Zimbabwe’s foreign currency receipts reached a record high of US$13.3 billion, a 21% increase from the previous year. Foreign receipts totalled US$11.4 billion in 2022 and slightly decreased to US$11.0 billion in 2023, mainly due to weaker global mineral prices.

For this year, the apex bank anticipates a 7% growth in foreign currency inflows to US$14 billion this year, as this growth is expected to be supported by an increase in exports and diaspora remittances.
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