Economic Updates - Featured - Finance - November 26, 2020

Zimbabwe: Monthly amount of remittances received per capita dropped to US$21 in April–May 2019

THE monthly amount of remittances received per capita in Zimbabwe dropped from US$29 in 2017 to US$21 in April–May 2019 for those households that received remittances, a new report shows.

According to a joint report by Zimbabwe National Statistics Agency (ZIMSTAT) and World Bank (WB) titled ‘Zimbabwe Poverty Update 2017-19’, show that richer households are more likely to have a household member living abroad compared to poorer ones.

“Among households with a member abroad, poorer households received fewer remittances,” it stated.

With a diaspora population of over 3 million, as recorded by the International Organization for Migration (IOM), remittances form a very important aspect of the Zimbabwean’s social and economic livelihood.

Diaspora cash remittances are a vital source of foreign currency liquidity for the country’s economy and income for many households.

In 2019, the southern African nation received US$635 million, representing a 2.6% increase from US$619.25 million dollars in 2018.

Recently, the World Bank (WB) said Sub‐Saharan Africa (SSA) is the costliest region to send remittances and has been made worse by the coronavirus impact.

The Covid‐19 pandemic has made it more difficult for migrants to remit money to Sub‐Saharan Africa using traditional or informal channels as most payments are still in cash and some Money Transfer operators are closed due to the crisis.

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