Harnessing the Zim diaspora for economic, social development

People collect funds received from the diaspora from a money transfer agency.

ZIMBABWE’S diaspora, estimated to exceed five million people, constitutes about 30% of the country’s population.

This global community represents a powerful resource with the potential to transform Zimbabwe’s socio-economic landscape.

With their diverse skills, significant remittance contributions, and strong emotional ties to their homeland, Zimbabweans abroad can play a pivotal role in national development.

However, effectively leveraging this resource requires a strategic and holistic approach. This article explores the demographic and economic impact of the diaspora, the challenges and opportunities it presents, and practical steps the government can take to maximise its potential.

Size, composition of Zim’s diaspora

Zimbabwe’s diaspora is widely dispersed, with significant populations in neighbouring South Africa (between 800 000 and one million), the United Kingdom (200 000), and countries such as Australia (65 000), Botswana (40 000), Canada (30 000), and the United States (50 000).

Smaller communities also exist in New Zealand, Ireland, and various parts of Europe and the Middle East.

The demographic composition of the diaspora is diverse, comprising both skilled professionals and individuals engaged in informal or semi-skilled sectors.

For instance, in Australia, about 74,5% of Zimbabwean migrants hold higher non-school qualifications, compared to 55,9% of the general Australian population.

In the United Kingdom and Canada, many Zimbabweans occupy prominent roles in healthcare, engineering, and education. By contrast, in South Africa and Botswana, a large portion of migrants work in informal sectors, reflecting the complexities of migration dynamics.

Remittances and investments

One of the most tangible contributions of the diaspora is through remittances. In 2023, Zimbabwe received an estimated US$1,47 billion in remittances, equivalent to about 8% of the gross domestic product (GDP).

These funds serve as a critical lifeline for many households, supporting education, healthcare, and daily consumption. South Africa alone accounts for approximately 40% of these remittances, followed by significant contributions from the United Kingdom, United States, Australia, and Canada.

While remittances provide immediate relief and improve household welfare, their potential for driving long-term development remains underutilised.

A substantial portion of remittances is spent on consumption rather than channelled into productive investments like small and medium enterprises, infrastructure, or innovation.

Challenges of diaspora engagement

Zimbabwe faces several challenges in fully harnessing the potential of its diaspora. The most prominent issues include:

Brain drain: The migration of skilled professionals, particularly in healthcare, education, and technology, has created significant skills gaps. For instance, Zimbabwe has lost thousands of nurses and doctors to the United Kingdom’s National Health Service, leading to staffing shortages in domestic hospitals.

Limited trust and governance issues: Perceptions of mismanagement and corruption have discouraged some diaspora members from engaging in large-scale investments or philanthropic initiatives.

Fragmented engagement channels: The absence of a centralised framework for engaging with the diaspora hampers coordination. Many efforts remain ad hoc, limiting their overall impact.

Recognition of skills: In some host countries, Zimbabwean qualifications are not fully recognised, confining many skilled migrants to underemployment, particularly in South Africa and Botswana.

Lessons from other countries

Several countries have successfully mobilised their diasporas for economic and social development. Zimbabwe can draw inspiration from these examples:

India: India leverages its large diaspora through initiatives like diaspora bonds (e.g., Resurgent India Bonds) and cultural programmes, such as Pravasi Bharatiya Divas, which strengthen ties and foster investment.

Ethiopia: Ethiopia raised significant funds for the Grand Ethiopian Renaissance Dam through diaspora-targeted bonds, coupled with policy incentives like dual citizenship and tax breaks.

Ireland: Ireland’s diaspora engagement strategy focused on attracting foreign direct investment (FDI), particularly in the technology sector, through strong cultural and business networks.

Opportunities for Zimbabwe

Zimbabwe’s diaspora offers significant opportunities to stimulate development, provided the government implements targeted and transparent policies.

Mobilising remittances

Establish diaspora investment funds to channel remittances into productive sectors such as agriculture, renewable energy, and SMEs.

Offer matching grants to encourage investments in community-driven projects like schools and clinics.

Reduce transaction costs by partnering with financial service providers to create efficient remittance channels.

Issuing diaspora bonds

Diaspora bonds can mobilise funds for high-impact infrastructure projects. Offering competitive interest rates, coupled with guarantees of transparency and accountability, can attract investment from expatriates eager to contribute to Zimbabwe’s development.

Encouraging knowledge transfer

Develop short-term placement programmes where diaspora professionals can return to Zimbabwe to mentor local talent or address critical skills gaps.

Create virtual platforms that allow the diaspora to engage in research, education, and policymaking from abroad.

Provide incentives such as tax breaks or career opportunities to encourage skilled returnees.

Strengthening diaspora networks

Formalising diaspora business networks can facilitate trade, FDI, and entrepreneurship.

These networks can act as intermediaries to promote Zimbabwean products and investment opportunities in global markets.

Promoting philanthropy

Diaspora communities often maintain strong emotional ties to their homeland, making them ideal partners for social development projects. Initiatives such as hometown development funds can channel resources toward local infrastructure, education, and healthcare.

Building emotional connections

Regular engagement through events like diaspora summits and cultural festivals can reinforce bonds and inspire a sense of shared responsibility for Zimbabwe’s future.

Sustainable framework

To realise these opportunities, Zimbabwe must address systemic barriers and create an enabling environment for diaspora engagement. Key actions include:

Improving governance and transparency: Trust is a prerequisite for engagement. The government must ensure transparent management of funds and initiatives, with regular reporting and independent audits.

Streamlining bureaucracy: Simplify processes for diaspora members to invest, do business, or contribute to national initiatives. Introducing a dedicated diaspora ministry could centralise efforts and improve coordination.

Enhancing political representation: Policies such as dual citizenship and diaspora voting rights can strengthen political ties and foster greater participation.

Conclusion

The Zimbabwean diaspora represents an immense, largely untapped resource for national development.

With strategic engagement, this global community can contribute not only financially but also through knowledge transfer, investment, and cultural diplomacy.

By creating a framework that prioritises trust, inclusivity, and transparency, Zimbabwe can turn its diaspora into a powerful partner for sustainable growth and resilience.

Harnessing this potential will require commitment and collaboration, but the rewards — both economic and social — are well worth the effort.

  • Chikosi, a former director at the World Bank, now serves as an independent director on the boards of prominent local and international companies. With a wealth of experience in global development and corporate governance, he is dedicated to fostering growth, driving sustainable solutions, and offering strategic insights into Zimbabwe’s economic challenges and opportunities.

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