tawandamusarurwa
Onine Reporter
Financial services provider CBZ Holdings says improved inflows of diaspora remittances last year helped to boost both consumption and investment in the local economy.
Diaspora remittances into Zimbabwe surged by 14 percent in 2022 to US$1,66 billion from US$1,4 billion a year earlier.
According to the Reserve Bank of Zimbabwe, remittances accounted for 14 percent of total foreign currency receipts over the same period.
In a statement accompanying the group’s full-year results to December 2022, CBZ group chairperson Mr Marc Holtzman said:
“Record high diaspora remittances of US$1,6 billion for the year 2022 continued to propel private consumption and investment, especially in the residential construction sector.”
Remittances are a major source of investment financing in Zimbabwe and have been a key funding mechanism for individual home construction and development of small-scale business enterprises.
Of the US$1,6 billion remittances that flowed into Zimbabwe last year, 40 percent (US$583 million) originated from South Africa, while the United Kingdom accounted for 25 percent (US$362 million).
United States of America contributed 11 percent of total remittances (at US$159 million).
Bongani Ndlovu
Online Reporter