By James Vusi
HARARE – Zimbabwe has experienced a significant boost in its economic stability with diaspora remittances soaring to US$635.2 million in the first half of the year, marking a 7.1% increase compared to the corresponding period last year. This vital inflow of foreign currency underscores the critical role played by the Zimbabwean diaspora in supporting the nation’s economy.
The encouraging figures were unveiled by Finance Minister Mthuli Ncube on last Thursday during his Mid-term Budget Review. Minister Ncube highlighted the positive trajectory of remittances, noting their favorable impact on the country’s current account balance.
“Remittances increased by 7.1%, from US$593.2 million [in the prior comparable period] to US$635.2 million [in the first half of 2025],” Minister Ncube stated. “The remittances have had a favourable impact on the current account balance.”
Looking ahead, the Minister projected continued growth, with remittances anticipated to rise by 4.9% from US$2.6 billion in 2024 to US$2.7 billion in 2025. This sustained growth is expected to maintain a positive current account balance for the nation.
Recognizing the strategic importance of its citizens abroad, the Zimbabwean government is actively working to strengthen the diaspora community’s role in national development. Minister Ncube revealed that the government is in the final stages of formulating a comprehensive Diaspora Policy. This policy is set to outline measures to promote remittances at a minimum cost and provide clear guidelines on various investment initiatives available to the diaspora.
Beyond remittances, Zimbabwe also saw an uptick in direct investment inflows. During the first quarter of 2025, these inflows were estimated at US$184.9 million, a notable increase from US$103.5 million recorded in the corresponding quarter of 2024. These investments were primarily in the form of capital equipment, predominantly directed towards the vital mining and manufacturing sectors.
The period also witnessed robust growth in new investment licenses, with 207 issued – a substantial 44.8% increase compared to the same period in 2024. This surge is partly attributed to the successful launch of the Zimbabwe Investment and Development Agency’s (ZIDA) digital investment license issuance system, which is streamlining processes and enhancing investor confidence and operational efficiency.
Direct investment inflows are projected to surpass US$600 million by the end of 2025, with the energy, mining, and manufacturing sectors expected to be the major beneficiaries, signaling a broader positive outlook for foreign capital attraction.
