The government expects diaspora remittances to rise to between US$1.5 billion and US$1.6 billion at year-end up from US$1.4 billion last year.
Speaking during a wide-ranging interview with Sunday News in Bulawayo on Saturday, the Minister of Finance and Economic Development, Mthuli Ncube, said the expected rise in remittances was due to increased diaspora support to locals.
Ncube also said Treasury was considering availing US dollar Diaspora Bonds to enable Zimbabweans living abroad to invest their funds at fair interest rates. Said Ncube:
There has been a steady increase in international remittances and we expect them to get to between US$1.5 and US$16 billion at year-end up from US$1.4 billion last year.
As a result of these remittances, my Ministry is considering availing US$ Diaspora Bonds to allow Zimbabweans living outside the country to invest their funds at fair interest rates.
This will enable them to remit to families in Zimbabwe their interest while leaving their initial capital investment intact.
Ncube said there has been a significant rise in domestic remittances and this will translate into lower costs of moving money. He said:
I think current money transfer rates are too high and should decrease but this will be determined by competition within the industry which is growing at a phenomenal rate.
Through the Reserve Bank of Zimbabwe (RBZ), we have been licensing more and more companies so in the medium to long term, the cost of moving money should decrease.
Ncube, however, noted that the increase in domestic transfers is not being reflected in Treasury inflows because they are not giving Government its Intermediated Money Transfer Tax (IMMT) on time.