Diaspora monies drop 25 percent

DIASPORA remittances dropped by 15 percent in the first half of the year to $387,9 million due to rapid currency depreciation in source markets against the United States dollar.

The Government has since moved to expedite the implementation of the National Diaspora Policy to promote the flow of funds through the formal financial system.

Diaspora remittances are a major source of liquidity in the country after exports.

In his mid-term fiscal policy statement yesterday, Finance and Economic Development Minister Patrick Chinamasa said the use of informal transfers also contributed to the decline.

“During the first six months of 2016, Diaspora remittances amounted to $387,9 million, compared to $457,8 million received during the corresponding period in 2015.

“However, part of the decline might also be reflective of increased use of informal transfer channels,” he said.

As part of measures to harness Diaspora remittances, by December 2015, the Government had licensed 34 money transfer agencies.

The minister said the anticipated decline in Diaspora remittances beyond 2016 would exert pressure on the country’s balance of payments.

“It’s therefore, vital that we expedite the implementation of the National Diaspora Policy to provide an enabling framework that promotes the flow of the funds through the formal financial system,” he said.

Chinamasa noted that the private sector offshore external loans have been an internal integral source of liquidity in the economy since the adoption of a multicurrency system in February 2009.

The loans, he said, have largely been utilised for working capital and capitalisation.

“During the period from January to June 2016, the Reserve Bank of Zimbabwe approved and registered a total of 156 private sector loan facilities totalling $976,4 million. The agriculture sector has the highest contribution of 49 percent, which is mostly buoyed by the tobacco sector,” said the minister.

Chinamasa also said dependency on loan financing as opposed to equity financing to fund business investments was often symptomatic of investors’ mitigation of perceived unfavourable investment climate and risks.

“This is also true for investors who resort to using the Engineering Procurement Construction model as opposed to equity investment,” he said. 

Related Posts
U.S. President Barack Obama shakes hands with Chinese President Xi Jinping during their meeting at the start of the climate summit in Paris November 30, 2015.  REUTERS/Kevin Lamarque
HANGZHOU, CHINA - The global economy is being threatened by rising protectionism and risks from highly leveraged financial markets, Chinese President Xi Jinping said at the open of a two-day summit ...
READ MORE
Zimbabwe import ban a blow to SADC free-trade plans
Zimbabwe’s ban on imports from South Africa undermines the Southern African Development Community (SADC) regional integration project. By Inocent Moyo Trade is an important element of regional integration. It promotes cross-border and local economic ...
READ MORE
Healing through dance: ‘It made me think back to how I ran away’ – Blessing Sibindi (28), an asylum seeker from Zimbabwe
Théogène “Totto” Niwenshuti meticulously set the scene for his performance at the Kildare Dance and Movement Summer School. While most participants were taking a break outside Loftus Hall at Maynooth University, ...
READ MORE
Zimbabwe says it has successfully launched new money
HARARE - Bond notes rolled out by the Reserve Bank of Zimbabwe yesterday got a positive response from the transacting public, despite spirited attempts by some groups to discredit them. ...
READ MORE
This year’s World Economic Forum in Davos will focus on the threat of right-wing populism for the first time ever
Each year in late January, around 2,000 of the globe’s leaders – politicians, bureaucrats, business representatives and public intellectuals – make the annual pilgrimage to the Swiss town of Davos ...
READ MORE
People sleep outside CABS Fourth Street branch on Thursday night. Pictures: Tapiwa Zivira
Harare - The current economic crisis in Zimbabwe is a result of Zanu-PF’s sole control of government after the end of the Government of National Unity (GNU), a senior economist ...
READ MORE
Moesha Gumpo
LONDON - Moesha Gumpo’s journey to academic success has been a long one – starting when she left Zimbabwe to come to the UK as a refugee. She was brought ...
READ MORE
SA Police thwart attempt by Zimbabwean thieves to smuggle car across Limpopo river using donkeys
A vehicle stolen in Durban was recovered by Limpopo police when thieves attempting to smuggle the vehicle into Zimbabwe tried to use donkeys to pull it across the swollen Limpopo ...
READ MORE
African banks sink into trouble
Johannesburg - African banks are sinking deeper into trouble. Drowning in bad debt and swamped by slowing economies, more and more of the continent’s lenders are starting to fail. The collapse ...
READ MORE
Zimbabwean migrant worker drowns in South Africa; body recovered
Cape Town - The body of a young worker who drowned in a farm dam at the Rocking the Daisies music festival in Darling on Friday was retrieved on Saturday. Festival ...
READ MORE
China’s Xi at G20 says world economy at
Zimbabwe import ban a blow to SADC free-trade
Healing through dance: ‘It made me think back
Zimbabwe says it has successfully launched new money
This year’s World Economic Forum in Davos will
Economist blames Robert Mugabe’s party for cash crisis
Zimbabwean star-student comes out top with UK GCSE
SA Police thwart attempt by Zimbabwean thieves to
African banks sink into trouble
Zimbabwean migrant worker drowns in South Africa; body

Arts & Entertainment

Arts & Entertainment

Ex-Utakataka bassists to launch album in Mzansi

25th March 2017 Staff Reporter 0

RONNIE Mudhindo’s musical journey is not complete without the mentioning of his early days with the late Tongai “Dhewa” Moyo and Utakataka Express band. The reference involves both sweetness and sourness. Utakataka fans may remember […]