South Africa loses top spot in Zimbabwe

The
UK
is
expected
to
be
the
largest
source
of
remittances
to
Zimbabwe
this
year,
overtaking
South
Africa
for
the
first
time,
according
to
Finance
Minister
Mthuli
Ncube.

Official
data
shows four
out
of
five Zimbabweans
who
live
abroad
are
based
in
neighboring
South
Africa,
traditionally
the
origin
of
the
bulk
of
money
expatriates
send
home.

Zimbabwe’s
Treasury
estimates
that
28.6%
of
$2.72
billion
in
remittances
this
year
will
emanate
from
the
UK
and
27.5%
from
South
Africa.

The
US,
Australia,
Botswana
and
Canada
are
the
other
key
sources
of
such
transfers,
the
biggest
source
of
foreign
exchange
after
mining
exports,
Ncube
told
lawmakers
at
the
weekend
ahead
of
a
budget
statement
scheduled
for
later
this
month.

“In
2026,
remittances
are
projected
to
grow
further
to
$2.75
billion,”
he
said,
even
as
he
forecast
that
the
economic
growth
rate
will
slow
to
5%
next
year
from
6.6%.

Regular
economic
crises
in
Zimbabwe,
including
bouts
of
runaway
inflation
and
frequent
currency
crashes,
have
fueled
emigration
and
there
has
been
a
steady
exodus
of
professionals
to
the
UK
in
recent
years
—
which
has
contributed
to
the
higher
remittances.

However,
the
UK
government
announced
in
May
that
it
had scrapped
care
visas,
which
many
Zimbabweans
have
relied
on
to
secure
access,
citing
“abuse
and
exploitation”
of
the
migrants.

Source:


South
Africa
loses
top
spot
in
Zimbabwe

–
Daily
Investor