Zimbabwe’s central bank, the Reserve Bank of Zimbabwe (RBZ), called on the government on Monday to provide fiscal and non-fiscal incentives to diaspora investments due to their massive contribution to total foreign currency inflows in the country.
Diaspora remittances have become the country’s biggest source of foreign currency, exceeding foreign direct investment, portfolio investment and official development assistance since 2009, according to central bank governor John Mangudya on Monday, following the RBZ Monetary Policy Committee (MPC) meeting on Friday.
The governor added that diaspora remittances contributed 16% to Zimbabwe’s total foreign currency inflows of $9.44 billion as of 31 October 2023.
“Thus the MPC underscored the need to leverage diaspora remittances for development as part of a broader package of measures to cushion the economy from recurring global shocks,” the governor stated.
“The MPC resolved to recommend that the government extends the fiscal and non-fiscal incentives for FDI to diaspora investments in the country, given the primacy of diaspora remittances in the economy,” Mangudya went on to add.
The Reserve Bank of Zimbabwe governor said that taking into account the prevailing macroeconomic environment, the Monetary Policy Committee also said it would keep interest rates at the present levels, including the bank policy rate of 130%, Xinhua news agency reports.
In addition, the Monetary Policy Committee highlighted the need for Zimbabwe’s government to continue hiking the proportion of taxes settled in local currency to boost demand for the local dollar and maintain the exchange rate, the central bank’s governor continued.
Zimbabwe Dollar falls to record low ahead of currency announcement
The Zimbabwean currency has fallen to another all-time low as residents sought refuge in the stability of the US dollar amid speculation the central bank is on the verge of making an announcement regarding the future of the local currency.
posted on 03.04.2024
RBZ urges govt incentives on diaspora investments
Zimbabwe’s central bank, the Reserve Bank of Zimbabwe (RBZ), called on the government on Monday to provide fiscal and non-fiscal incentives to diaspora investments due to their massive contribution to total foreign currency inflows in the country.
posted on 05.12.2023
Zimbabwe Dollar falls to record low ahead of currency announcement
The Zimbabwean currency has fallen to another all-time low as residents sought refuge in the stability of the US dollar amid speculation the central bank is on the verge of making an announcement regarding the future of the local currency.
posted on 03.04.2024
RBZ urges govt incentives on diaspora investments
Zimbabwe’s central bank, the Reserve Bank of Zimbabwe (RBZ), called on the government on Monday to provide fiscal and non-fiscal incentives to diaspora investments due to their massive contribution to total foreign currency inflows in the country.
posted on 05.12.2023
deVere Zimbabwe’s Public Relations Department deals with all areas of the media and external communications including international, national, regional, local, trade, consumer, print, broadcast, social and online. The Department aims to provide a helpful service to journalists, broadcasters and editors, amongst others, and reply to all media enquiries, including urgent enquiries out of hours, within agreed deadlines. Our press office does not have access to client details and will not be able to assist with individual client enquiries. Please contact deVere Zimbabwe’s Head of Public Relations on [email protected] or call +44 2071220925