By Ziyah News Network Reporter
Harare-Throughout Zimbabwe’s tough economic period characterised by hyperinflation and shrinking economic growth, the country’s diaspora community played a crucial role in keeping families back home afloat and as the country recovers and accelerate growth, the same people find themselves at the epicentre of sustaining economy Zimbabwe.
Figures from the Ministry of Finance and Economic Development indicate Diaspora remittances continue being a critical element in the country’s foreign currency receipts contributing at least 20% of the total foreign currency earned by the country in the 6 months of 2024.
This was revealed by Finance and Economic Development Minister Mthuli Ncube as he presented his speech at the Zimbabwe Economics Society and Friedrich-Ebert Stiftung (ZES/FES Breakfast Meeting.
“Remittances grew significantly by 16.5%, from US$1 billion in the first half of 2023 to US$1.2 billion in 2024, reflecting higher inward remittances from the diaspora, resulting in a favourable impact on the current account balance, said Minister Mthuli.
The 16.5%v growth in remittances is way above the total performance of the country’s forex receipts in the same period which witnessed a 9.5% jump.
“Total foreign currency receipts increased by 9.5% to US$6.2 billion during the period from January to June 2024, from US$5.6 billion received during the same period in 2023, largely driven by the growth in export receipts, mainly from gold, agriculture commodities and manufactured products, as well as diaspora remittances, said the Minister.
He also took the opportunity to emphasise that the Government of Zimbabwe and in particular his Ministry will always be open to ideas and opinions from other quarters.
“It is common knowledge that economists always have different perspectives and prescriptions for similar problems, therefore, it is healthy for other opinions to be heard and discussed, hoping to develop common and workable policy prescriptions.”
“Against this background, I want to assure members of the Society that as Government, and specifically, the Ministry of Finance, Economic Development and Investment Promotion, is open to all progressive policy prescriptions and constructive criticism, taking into account that we all have one Zimbabwe, which we should endeavour to make it successful.”
The ElNino induced economic stress, has pushed the Ministry of Finance to reduce initial economic growth projections from 3.5% to 2%, however the country’s current account remains in a healthy state recording a surplus of a surplus of US$19.2 million in the first half of 2024