NEW: Zimbabwe to benefit from a rise in remittances to Africa

Nqobile Bhebhe

Zimpapers Business Hub

ZIMBABWE is among countries positioned to benefit immensely from a projected surge in remittance to Africa, with the African Development Bank (AfDB) forecasting that the continent will receive US$100 billion in remittances this year.

The trend is expected to triple by 2035, reaching a staggering US$283 billion.

According to the AfDB’s 2025 African Economic Outlook (AEO) report, launched at the bank’s annual meetings in Abidjan, Côte d’Ivoire, this week, remittances and the formalisation of business activities are now recognised as vital levers for inclusive growth and domestic resource mobilisation across Africa.

“Africa is expected to attract about US$100 billion in remittance inflows in 2025, and the formal remittance market could reach a lower bound of US$283 billion by 2035, a threefold increase from 2023,” the bank said.

However, AfDB cautioned that high remittance transfer costs continue to drive a significant portion of funds through informal channels, limiting the full economic impact of these flows.

“High remittance costs promote transfer through informal channels, which range from 35 to 75 percent of resource transfers through formal channels, with Africa on the higher side.”

In line with the United Nations Sustainable Development Goals, the report underscores the importance of reducing transaction costs to encourage formalisation.

“Reducing the cost of remittances from about 7 percent in 2023 to 3 percent by 2030, a target set by the United Nations Agenda on SDGs, could crowd-in informal transfers to the formal remittance market,” reads part of the report.