Remittances to Hold Steady Despite Return of Thousands From South Africa, Says Mnangagwa Spokesperson

Zimbabwe's remittances are unlikely to be significantly affected by the return of thousands of its citizens from South Africa, despite ongoing xenophobic attacks, according to a government official. The country relies heavily on these diaspora inflows, which constitute a substantial portion of its gross domestic product.

Official statistics indicate that Zimbabwe has already recorded US$1.55 billion in remittances from its diaspora. Government projections suggest this figure is expected to double before the end of the year. Charamba, Deputy Chief Secretary for Presidential Communications in the Office of the President, Emmerson Mnangagwa, asserted that the recent wave of repatriations will not impact remittance flows.

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By and large, remittances have tended to be dominated by Zimbabwe's professional echelon located in the diaspora. This is largely intact and relatively securely ensconced in the diaspora. To that extent, and given that this is the echelon with significant disposable income, one surmises some stability on the remittances front.

Charamba explained that remittances are largely dominated by Zimbabwe's professional class residing abroad, who are generally secure and possess significant disposable income. This stability among the primary remitters suggests a continued steadiness in remittance levels. Last year, the UK and South Africa were the largest sources of remittances, accounting for 28.6% and 27.5% respectively.

Counterintuitively, Charamba suggested that remittances might even rise. He posited that the anti-migration sentiment in South Africa could prompt returning citizens to increase their remittances. This could be for the purpose of preparing for their eventual return home or for investing back in Zimbabwe during uncertain times. The current situation, he argued, could stimulate precautionary home investment.

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In fact, remittances could rise, as this stratum realises the need to pad their eventual homecoming by beginning to remit for more than just the upkeep of those they left behind, and to look at reinvesting at home for a rainy day. The anti-migration wave could easily stimulate precautionary home investment.