The Reserve Bank of Zimbabwe governor John Mangudya has said that remittances grew exponentially after COVID-19. It was largely expected that remittances would crash due to job-losses and the Coronavirus-induced economic recession.
Mangudya speaking during a ZIMRA press conference mentioned that contrary to that belief remittances actually grew. From January to July 2019 Zimbabwe received US$349.7 million. During the same period for 2020, that amount grew to US$466.2 million – 33% growth.
Mangudya said in July alone there was 79% growth as US$59 million was sent to Zimbabwe.
This is an interesting trend as the World Bank predicted that remittances would decline by as much as 20% globally. Whilst this might still happen – it seems Zimbabwe is not as widely affected at the moment.
Remittances are generally very important as they make up nearly 15% of our GDP – the most globally;