The changing remittance economy in Zimbabwe

The same applies to South Africa where the majority of migrants end up. These may be short-term jobs in the farms of Limpopo province or in the mines of the Rand, while the lucky few may secure jobs as teachers, lecturers or in business, where pay is reasonable.

However, the conditions for Zimbabwean migrants in South Africa have deteriorated. As in many places, migrants are seen to be threatening local jobs and the rise of a populist and often violent xenophobia has resulted in life in South Africa becoming increasingly difficult, even dangerous as attacks increase. 

One of our informants in Wondedzo explained what happened to her brother. He was subject to an attack by a mob and he was burnt inside his locked house. He survived but was severely burnt and he returned home disabled and in need of continuous medical attention.

This is sadly not an isolated incident and, even if not resulting in injury or death, the underlying threats are there, generating anxiety, stress and a sense of continuous insecurity. The rising tensions and violence of South Africa makes many want to leave. 

As our informant explained, the only upside of this terrible story was that it dissuaded her sons from going to South Africa, and instead they have established homes on their now subdivided self-contained A1 farm and are making a living from agriculture at home. A combination of the decline of the South African economy, discrimination against migrants and xenophobic violence has meant that there is now a steady flow of returnees coming back to Zimbabwe from South Africa and seeking land for farming, a phenomenon reported across our sites. 

The ability to send funds to relatives back home has increased dramatically in recent years thanks to the growth of efficient electronic transfer systems, which are available everywhere.

Anyone sending remittances to Zimbabwe will be familiar with Western Union, World Remit and so on, alongside Mukuru and Mojomule, which are local equivalents. The system is quick and can be done on a phone in minutes with money being available at agent locations across the country. 

Today US dollars are usually available, and money can be received quickly at relatively low cost (for the amounts I generally transfer, I pay £2.90 to Western Union with an exchange rate which is not too bad). There are lots of opinions as to which system is best, and many we talked to preferred Mukuru as it has such a wide network and, especially for unregistered migrants in South Africa, the paperwork is considerably less for initial registration.

Such systems are complemented by the now ubiquitous Ecocash, which is immediate and based on mobile money transferred through phones. Transfers can happen in US dollars or Rands but also in RTGS or some combination. 

Ecocash transfers happen continuously moving funds around the country (and indeed the world as you can use the facility internationally) in large volumes. This has revolutionised the ability to manage money, facilitating investment, marketing and the payment of emergency costs across the rural areas.

Another form of remittance payment involves the buying of goods abroad and allowing relatives to pick them up at designated stores. This avoids the transfer of cash, which may end up not being put to good use but ensures that relatives are supplied with groceries (mostly), but also other goods. Hellopaisa is one such facility and is increasingly popular.

Compared to the past where cumbersome bank transfers or sending goods on buses were the norm, a whole suite of options is available for transferring funds today. This is vital for support for rural households, as well as helping to fuel investment and growth in agriculture, as many such investments we see across our sample farms can be directly traced to remittance payments, at least in part.   

Continued next page

(153 VIEWS)

Comments

No comments yet. Why don’t you start the discussion?

Leave a Reply

Your email address will not be published. Required fields are marked *