Remittance Inflows to Zimbabwe Surged

Cross border remittances into Zimbabwe surged to $1 billion in 2020, due to Covid-19 Restrictions which forced Migrants to Use Formal Channels Economist Intelligence Unit has revealed.

This surge in remittances occurred despite the steep decline in economic activity.

According to a report by the Economist Intelligence Unit ( EIU) this increase applies to the surge of the mobility restrictions that were imposed in response to the spread of the Covid-19 pandemic.

“The surge in remittance inflows could be a result of many Zimbabweans in nearby countries, such as South Africa, Malawi, and Botswana, shifting to formal money-transfer channels owing to the effect of the coronavirus (Covid-19) pandemic, as travel across international borders was curtailed for much of 2020,” the report said.

While adding that accordingly, informal remittance channels, such as relying on couriers using cross-border transportation, like bus and truck drivers or passengers, to send funds, were largely closed to the diaspora.

In May Finance and Economic Development Minister, Mthuli Ncube announced that remittances from the diaspora reached some US$1bn in 2020, compared with US$636m in 2019.

“It has gone very well for us in terms of remittances from our own diaspora abroad. Whereas you know, last year, we received US$1 billion, which is a record inflow,” he said.