ZIMBABWE – Diaspora remittances to Zimbabwe have increased by almost 100 percent for the 11 months starting January this season compared with last year.
During the first 11 months of 2014, Zimbabwe received $540 million in diaspora remittances but the figure has risen to $966 million during the same period this year.
The inflows have surpassed the value of FDI inflows averaging $600 million.Remittances from millions of Zimbabweans abroad are becoming a key source of income for the economy.
Data from treasury indicates a rise in Diaspora contributions to $966 million in the past 11 months against $566 million worth of FDIs since January.
National Economic Consultative Forum executive secretary Norman Chakanetsa says diaspora income is also critical in solving liquidity challenges.
“We are likely to foresee a lot in terms of these investments which indeed are critical in sustaining the needs of this economy,” said Chakanetsa.
A business analyst Cephas Mawushe says government should focus on policies to increase investment.
“What we now need is a platform to boost investment which is key to job creation,” Mawushe said.
Zimbabwe is this year targeting US$1 billion income inflows from locals working abroad, a figure that now appears feasible considering the coming festive period.