Zimbabwe’s Finance Minister Mthuli Ncube has forecast that remittances sent by Zimbabweans living abroad will exceed $3.2 billion this year, after inflows surged 41.4% in the first half of 2026 to $1.55 billion, reinforcing their importance as a source of foreign currency for the economy.

Ncube presented the figures in a State of the Economy report delivered at the ZANU-PF People’s National Conference held last week in Chinhoyi. “The value surpassed $1.55 billion in the first half of 2026, an increase of 41.4% compared to the first half of last year,” he said.

The minister expects remittances to continue growing, projecting they will reach $3.4 billion by 2027. “These flows are a reliable anchor for the economy and for the exchange rate,” he stated.

Beyond supplying foreign currency to the formal economy, remittances help households cover essential expenses such as education and healthcare, underscoring the role of diaspora income in supporting family welfare.

The geographic origin of remittances is also shifting. In the first quarter of 2026, the United Kingdom emerged as the leading source market, accounting for 28.6% of total inflows, up from 24.9% in 2024 and 22.3% in 2022.

By contrast, the share of remittances originating from South Africa — historically the dominant source — has been declining. In the first quarter of 2026, South Africa accounted for 27.5% of total inflows, down from 31.2% in 2024 and 38.3% in 2021. Over the same period, the United States contributed 11.2%, compared with 9.8% in 2024, while Australia accounted for 5.5%.

Canada followed with a 2.1% share and Botswana with 2.0%. The remaining markets collectively accounted for 23.1%, reflecting a broadening diversification in the origins of diaspora funds.

The projected increase in remittances could also pave the way for greater productive investment in Zimbabwe. Although these funds are traditionally directed towards household expenditure, their deployment in savings, housing, and small businesses has the potential to stimulate economic activity and job creation. Efficient and accessible transfer channels that encourage more funds to enter the regulated financial system will be critical to realising that potential.