Diaspora remittances into Zimbabwe rise to US$635.2m

Published: 20 hours ago

Diaspora remittances into Zimbabwe grew by 7.1% in the first half of 2025, reaching US$635.2 million compared to US$593.2 million during the same period last year, according to Finance Minister Mthuli Ncube's Mid-term Budget Review presented on Thursday.

Companies like Tayo Pay registered increased business at very low fees to it's clients.

Ncube said the increase had a positive effect on the country's current account balance and projected that remittances would rise further to US$2.7 billion by year-end, up from US$2.6 billion in 2024.

"Given the strategic importance of the diaspora community, the Government seeks to strengthen their role in the development of the country," Ncube said. "The remittances have had a favourable impact on the current account balance."

He revealed that government is finalising the Diaspora Policy, which will outline measures to promote remittances at minimal cost while providing guidelines for various investment initiatives aimed at channelling funds into productive sectors.

The Mid-term Review also showed a significant surge in foreign direct investment (FDI) inflows. During the first quarter of 2025, FDI was estimated at US$184.9 million, up from US$103.5 million in the corresponding quarter last year. Most of these inflows came in the form of capital equipment, primarily directed towards the mining and manufacturing sectors.

During the same period, the Zimbabwe Investment and Development Agency (ZIDA) issued 207 new investment licences - a 44.8% increase from last year. Ncube attributed the growth partly to the successful launch of ZIDA's digital investment licence issuance system, which has streamlined processes and improved investor confidence.

FDI inflows for the full year are projected to exceed US$600 million, with the energy, mining and manufacturing sectors expected to be the main beneficiaries.
- NewZimbabwe

Tags: Remittances,