EXPATRIATE Zimbabweans in South Africa accounted for 30 percent of the nearly US$1 billion remitted to the southern African country in the first half of 2023, new central bank data shows.
Officially, as many as 773 000 Zimbabweans have settled down in South Africa in search of better employment prospects, according to 2022 census data from Zimstats.
Of these, about 178 000 hold special Zimbabwean exemption permits. Data from the Reserve Bank of Zimbabwe’s 2023 mid-term monetary policy shows that diaspora remittances for the six months to June 2023 “amount to US$919 million, a 15 percent increase from US$797 million received during the same period” last year.
Of the total diaspora remittances to Zimbabwe during the period under review, South Africa as a source market accounts for 29 percent while about 22 percent originated from the United Kingdom.
Some experts say official data is only a fraction of the large informal remittance channels sending money back to Zimbabwe owing to high remittance charges by formal banks and money transfer institutions. Remittances have been pivotal in sustaining Zimbabwe’s economy and for development of infrastructure such as housing and other investments.
This comes as remittances to Zimbabwean non-governmental organisations and foreign direct investments have also been low. Banks in Zimbabwe have been facing intense competition for a share of the remittance market from emerging and cheaper fintech platforms.
“I am in a group of diaspora Zimbabweans, most of whom now give their bank cards to Zimbabweans to withdraw cash from inside Zimbabwe or purchase goods at supermarkets using our foreign bank cards. The charges are much lower compared to remittance fees, which can amount to 15 percent of the amount,” said one expatriate employed by a finance institution outside Zimbabwe. Wires
