THE Zimbabwean diaspora community has long played a very key yet significantly vital role in supporting their families back home and injecting the much-needed capital into the local economy.
From formal and informal remittances to small business investments, the hope of “building back home” remains deeply entrenched and rooted in the hearts of many people based abroad.
However, while intentions are noble, many diaspora investments regrettably normally end in frustration, loss, or regret due to avoidable mistakes.
As we continue to help and work with a lot of Zimbabweans in the diaspora investing back home, we thought of sharing useful and valuable experiences.
In this article, we explore common diaspora investment pitfalls through real, relatable experiences and offer actionable insights to help Zimbabweans at home and abroad make wiser decisions.
1. Trusting the Wrong People Without Oversight
Case Example: Tawanda, based in the UK for a very long time, wishes to make investments back home in real estate, he sent over US$30 000 to a cousin in Zimbabwe to help build rental flats in Ruwa. The cousin would send periodic pictures of the foundation and a few bricks, and after months of silence, the photos stopped abruptly. A surprise visit to Zimbabwe revealed an overgrown, undeveloped plot and no trace of the funds at all. A property being rented out managed by a relative, the rentals are not accounted for without trace or accountability.
Lesson: Trust alone is not a strategy. Always formalise relationships, conduct due diligence, and demand transparency. Use reputable management consultancy firms, legal firms, project managers or property developers with references and contracts. Monitor progress through scientific management reports, digital tools, receipts, and third-party audits, not WhatsApp photos alone.
2. Investing in Businesses They Don’t Understand
Case Example: Rudo in South Africa invested in a transport commuter business commonly known as kombis in Zimbabwe, Harare to be particular with a cousin who also convinced her to buy a second-hand 30-tonne truck. The commuter omnibus would always not cash in almost daily being told there were a lot of road permit issues and traffic police on the road, After three months, the truck broke down permanently, and the driver had pocketed most of the income. Rudo lost her savings and later admitted she knew nothing about commuter omnibuses and trucking.
Lesson: Avoid investing in industries you do not understand. If you must, partner with experienced professionals or take time to learn the ropes before committing. Business in Zimbabwe is hands-on, remote, and passive investment without insight often leads to disaster.
3. Emotional vs Strategic Investment Decisions
Case Example: Farai in Canada felt pressured to build a rural mansion to show “success” to his family. He sent thousands back home to build a six-bedroom house in Gokwe. Five years later, the house remains unoccupied, decaying, and far from any meaningful return on Investment.
Lesson: Do not confuse family pride with sound investment. A house is not always an asset unless it produces income or serves a viable purpose. Evaluate every decision through a return-on-investment (ROI) lens, not emotional validation.
4. Ignoring Local Compliance and Regulation
Case Example: A group of Zimbabweans with common interests in the US tried to open a food processing plant back home. They bought equipment, shipped containers, and hired staff. However, they overlooked licensing, ZIMRA taxes, EMA environmental requirements, and municipal approvals. The plant was shut down before the first production run, all the investments went down the drain with absolutely no return on even the initial investment outlay.
Lesson: Zimbabwe’s regulatory environment can be complex. Always consult local legal and compliance experts. Engage professionals who understand licensing, tax, labour, and zoning laws before spending money on operations. A very key requirement is necessary before embarking on any business project or investment.
5. Underestimating the Importance of Business Structures
Case Example: A good example is that of a Zimbabwean family from Mtoko who lived in Australia and started a poultry project back home. The project started well the project was run by relatives with no formal legal written contracts, no bank accounts, no inventory records, and no formal entity. Eventually, stock disappeared, money could not be accounted for, and disagreements erupted. The relationship was strained and eventually collapsed.
Lesson: Successful business needs structure, banking systems, formal registration, financial records, reporting, and contracts. Informal arrangements are fertile ground for abuse and inefficiency.
6. Short-Term Thinking Over Long-Term Vision
Case Example: Blessing based in Botswana started a kombi business for “quick cash.” After three years, he had no savings, the kombi’s were broken down, and drivers had stolen daily takings. With no asset replacement plan or long-term strategy, he gave up.
Lesson: Quick wins are tempting yet unsustainable, but sustainable wealth requires a long-term plan, asset reinvestment, and resilience. Think beyond immediate returns. Build systems, reinvest profits, and track performance against goals.
Key Takeaways for Diaspora Investors:
1. Research before you invest. In a highly dynamic and fluid economic and business environment understand the industry, market dynamics, and economic conditions.
2. Partner wisely. Company, proximity and association matters, always align with competent, honest, and experienced individuals, preferably with contagious influence and business contracts.
3. Formalise everything. Whatever you engage in, use legal structures, accounting, and contracts to protect your investments.
4. Stay involved. Remote does not mean removed. Use video calls, site visits, and system monitoring.
5. Focus on sustainability. Avoid “get-rich-quick” plans. Prioritise ventures that offer scalability and stability.
Conclusion
Zimbabwe is still a capital destination of choice and offers real opportunities for investment, but only for those who approach it with clear eyes, solid plans, and strategic discipline. The emotional pull of “doing something back home” should never override business logic. Every dollar sent home is a seed, plant it with care, nurture it with systems, and harvest it with accountability.
The diaspora is a powerful economic engine for Zimbabwe. With better planning and fewer mistakes, it can help build businesses, create jobs, and transform lives for good.
(Shephard Kembo is Managing Partner of Globavel International (PVT) LTD)
