Harare, – Zimbabweans living abroad have sent an impressive $1.9 billion in remittances in the first nine months of 2024, according to the latest data from the 2025 National Budget.
The figures highlight the critical role of diaspora remittances in the country’s foreign currency inflows, accounting for approximately 16% of all foreign currency entering Zimbabwe—second only to exports, which remain the country’s largest forex earner.
Finance Minister Mthuli Ncube, in his budget presentation on Thursday, revealed that diaspora remittances had grown by 16.5% from $1.6 billion in the same period last year, reflecting the resilience of the Zimbabwean diaspora’s financial contributions to the economy. He projected that remittances would continue to drive the country’s current account surplus, with an expected total of $2.49 billion by the end of 2024 and an increase to $2.51 billion in 2025.
Minister Ncube also shared encouraging news regarding the country’s international reserve position, which saw a substantial increase from $285 million in April 2024 to $540 million by October 2024. This growth is attributed to a strategic reserve accumulation approach, which bolstered both foreign currency and gold holdings in Zimbabwe’s nostro balances, offering better coverage for Zimbabwe Gold (ZiG) reserves.
Looking ahead, Ncube emphasized that the Reserve Bank of Zimbabwe (RBZ) would continue its efforts to strengthen international reserves, creating a buffer for economic stability and ensuring sufficient import cover.
In terms of inflation, Minister Ncube noted that prices for goods and services had remained relatively stable following the introduction of ZiG in April 2024. Inflation, based on ZiG, showed a decrease of -2.4% in May 2024 and averaged 0.0% in the second quarter of the year. However, inflationary pressures resurfaced between August and October 2024, driven by increased foreign exchange activities in the parallel market, which fueled negative inflation expectations. In response, the Monetary Policy Committee (MPC) took action by raising the bank policy rate and adjusting statutory reserve requirements.
Additionally, the MPC introduced measures to allow greater flexibility in the exchange rate and reduced the limit on the amount of foreign currency individuals could take out of the country, lowering the limit from $10,000 to $2,000. As a result, the local currency depreciated to a rate of US$1:ZiG25.
The continued growth of remittances, combined with measures to stabilize the currency and build foreign reserves, reflects Zimbabwe’s ongoing efforts to improve its economic stability and resilience in a challenging global environment.