The Battle For A Share Of Zimbabwe’s Billion Dollar Remittance Industry

Diaspora remittances to Zimbabwe surged from $1 billion in 2020 to $1.4 billion last year By Tawanda Karombo The scramble is on for Zimbabwe’s billion-dollar remittance industry with local and international fintech institutions vying for a share of the pie against legacy banks and traditional money transfer agencies. Diaspora remittances to Zimbabwe surged from $1 billion in 2020 to $1.4 billion last year. This mirrors the continent-wide significance of contributions by diaspora Africans to national development and sustaining family and friends back home. World Bank data shows that remittance inflows to sub-Saharan Africa grew in 2021 by 6.2% to $45 billion against a projected 5.5% this year due to economic recovery in US and Europe. In Zimbabwe, remittances are a lifeline. The rise in remittance inflows into Africa coincides with foreign direct investment declines in countries such as Zimbabwe where FDI has fallen from $194 million in 2020 to $166 million last year. (adsbygoogle = window.adsbygoogle || ).push({}); At the same time, some big legacy banking institutions such as Barclays and Standard Chartered are divesting out of Zimbabwe, leaving a big opportunity for fintech players to tap into the remittances market through partnerships and alliances or with local