(Ecofin Agency) - Diaspora remittances accounted for 25% of Zimbabwe's total foreign currency earnings between January and September 2024.

Remittances from Zimbabweans living abroad reached $1.9 billion between January and September 2024, marking a 16.5% increase compared to $1.6 billion during the same period in 2023. This was announced by Zimbabwe’s Finance Minister, Mthuli Ncube, during his 2025 budget presentation to Parliament on November 28.

These funds account for 25% of the country’s total foreign currency earnings, which stood at $10 billion over the nine months. This contribution is vital, especially given the ongoing economic challenges and monetary instability.

Zimbabwe has struggled with the collapse of its local currency, the Zimbabwean dollar, leading to hyperinflation and a shift toward using the US dollar. In April 2024, the government launched a gold-backed digital currency, Zimbabwe Gold (ZiG), in an effort to rebuild trust in the economy. The International Monetary Fund (IMF) believes this initiative could help end the country’s chronic economic instability.

In response to these challenges, the government has focused on strengthening ties with the international community to attract foreign investment, boost trade, and encourage greater participation from the Zimbabwean diaspora in the national economy, Ncube stated. He predicts remittances will reach $2.49 billion by the end of 2024 and $2.51 billion in 2025.