Government releases research study on the flow, impact, and regulatory framework of migrant remittances in Zimbabwe

Harare - IOM Zimbabwe implemented a project, with technical and funding support from the IOM Development fund, to improve data on migrant remittances in Zimbabwe. The project aimed to inform public policy actions to maximise the positive impact of remittance flows on the country's development, including promoting sustainable investments and community development.

IOM helped Zimbabwe's government study the effect of remittances from South Africa on Zimbabwean households. The goal was to provide policy insights on improving remittance services and their impact. The report covers remittance volumes, costs, channels, frequency, usage, and COVID-19's impact on them. It also examines how remittance income affects recipients' livelihoods.

Some of the findings highlighted that The South Africa to Zimbabwe corridor has emerged as the largest inbound remittance route in the Southern African Development Community (SADC) region, and that the corridor has seen an average of over 3 million transactions and USD 296 million annually between 2016 and 2021. 

In particular, the South African corridor accounts for the highest level of remittances, with 43 percent in 2021, up from 38 percent in 2015. The majority of transaction volumes from South Africa to Zimbabwe are through Authorised Dealers with Limited Authority (ADLAs)/non-banks, with 86 percent of the total volume. Most recipients, 58 percent, receive USD 99 or less per remittance inflow. 

The diaspora community in South Africa is supporting three or more family members in Zimbabwe, according to 72 percent of respondents. The average cost of sending remittances is 9.2 percent, and remittances are mostly used for household consumption. However, since the onset of COVID-19, 74 percent of respondents have experienced a decrease in remittance amounts received.

The study and report support Zimbabwe's NDS1, UN SDGs, Agenda 2030, and GCM objectives. They resulted from collaboration between IOM, Reserve Bank of Zimbabwe, and Zimstat. At the report launch, IOM Zimbabwe's Ana Medeiros noted migrant remittances' importance to the economy and suggested the report as a baseline for improving policies on remittance regulation.

IOM will soon undertake a project with the aim of complementing this initiative. The project's primary objective is to enhance private sector development, economic growth, and social resilience in African transition states by involving their Diaspora. This move will expand the focus on remittances from being solely for family consumption to promoting broader economic development.

The report can be accessed at this link

For  more information please contact Fadzai (Penny) Nyamande-Pangeti  +263 787 8686 08