Zimbabwe's Foreign Currency Remittances Hit US$1.2 Billion

Zimbabwe’s foreign currency remittances rose by 16.5% to hit a record US$1.2 billion in the first half of 2024 resulting in a favourable impact on the country’s current account balance.

This was said by Finance Minister Mthuli Ncube while presenting the Mid Term Budget Review Statement in Parliament Thursday. He said:

Remittances grew significantly by 16.5%, from US$1 billion in the first half of 2023 to US$1.2 billion in 2024, reflecting higher inward remittances from the diaspora, resulting in a favourable impact on the current account balance.

Minister Ncube also revealed that total foreign currency receipts increased by 9.5% to US$6.2 billion during the period from January to June 2024. He said:

Mr Speaker Sir, total foreign currency receipts increased by 9.5% to US$6.2 billion during the period from January to June 2024, from US$5.6 billion received during the same period in 2023, largely driven by the growth in export receipts, mainly from gold, agriculture commodities and manufactured
products, as well as diaspora remittances.

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In line with this improvement in foreign currency receipts, preliminary estimates indicate that the current account recorded a surplus of US$19.2 million in the first half of 2024, a turnaround from the deficit of US$13.8 million recorded in the same period last year.

To year-end, the current account surplus is projected to narrow to US$44.5 million in 2024, relative to a surplus of US$133.9 million recorded in 2023.

Ncube said the country’s total debt has soared to US$20.5 billion with the government resorting to local borrowing.

The country’s stock of debt as at end of June 2024 amounted to an equivalent of around US$20,5 billion with external debt making up US$12 billion and domestic debt US$8.47 billion.

The debt stock is broken down as 58.7% external debt and the remainder being domestic debt 41.3%. Said Ncube:

Mr Speaker Sir, the country’s stock of debt as at end of June 2024 amounted to ZiG287.2 billion, comprising of external debt of ZiG168.5 billion and domestic debt of ZiG118.7 billion.

The debt stock is broken down as 58.7% external debt and the remainder being domestic debt 41.3%.

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