|
Back to Index
Harnessing
the diaspora potential for socio-economic development in Zimbabwe:
Investment, trade and participation in political processes
National
Association of Non-Governmental Organisations in Zimbabwe (NANGO)
September 06, 2011
Download
this document
- Acrobat
PDF version (813KB)
If you do not have the free Acrobat reader
on your computer, download it from the Adobe website by clicking
here
Executive Summary
Throughout the
world, the Diaspora plays an important role in the development of
the home countries' economies through remittances, skills
and technology transfers, investments, trade as well as the creation
of social and professional networks that advance the countries'
developmental needs.
In Zimbabwe,
the World Bank (2008) estimates that migrant remittances through
official channels amounted to US$17 million in 1980, increasing
to US$33 million in 1982, and US$44 million in 1994. It is estimated
that more remittances are sent through informal channels. The objective
of this study is to analyze the potential of the Zimbabwean Diaspora
to invest and trade in their home country and how this can be harnessed
with the view of reducing poverty. It was based mainly on getting
the views (through meetings, interviews and workshops) of key stakeholders
and resource persons in both the Diaspora and Zimbabwe. South Africa
and the UK were given special focus since most Zimbabweans living
outside the country are in these two countries. In addition, an
extensive review of relevant literature was also done.
The study indicated
that about 72% of Zimbabweans in the Diaspora send remittances to
relatives and friends back home and this is mostly done through
informal channels. The recipients of the remittances use the money
for food (41%), education (12%), rentals (10%), health (7%), and
clothing (7%). About 30% of the respondents said that they had made
significant investments in Zimbabwe since they left. The most preferred
investment areas are immovable property, motor and transport, agriculture
and mining.
It should however
be noted that the Zimbabwean Diaspora is a heterogeneous group comprising
different categories of people. The categories include refugees,
asylum seekers, failed asylum seekers, resident permit holders,
work permit holders, students and illegal immigrants. The degree
of investment depends on the level of income, which is in-turn influenced
by one's resident status, age and number of years spent in
the host country.
Those staying
legally in the host countries, with resident and work permits are
generally able to engage in legal economic activities, which earn
them enough income to invest, back home.
The other categories
are not allowed to work and therefore find it difficult to raise
funds to invest back home. Ironically, a considerable number in
this group are highly skilled and hard-working. Permitting them
to work would provide more income and skills development opportunities
that would benefit Zimbabwe in the medium to long term.
The largest
group of investors (36%) was found within the 30-39 age group, followed
by the 40 - 49 age group (23%).
In terms of
income levels, the highest number of investors (28%) was found in
the income group of between US$ 20001 -US$30000 per year,
followed by the US$ 10001 - US$20000 group (23%).
Viable investment
opportunities exist in virtually all sectors of the economy, that
is, mining & minerals, agriculture and agricultural processing,
infrastructure, immovable property, Information & Communication
Technology (ICT), education, health, social welfare, equities and
money market, hotel and tourism, construction, textiles and clothing,
finance and insurance. This is more so in view of the fact that
Zimbabwe is recovering from a serious economic crisis and returns
on investment are relatively high.
Less than 5
% of the study respondents said that they have participated in any
trade or initiated any trade deals between the host countries and
Zimbabwe during the past ten years.
Those who did
bought second-hand vehicles, motor spare parts, electronic equipment
and fuel coupons for resale in Zimbabwe. However, this was generally
done on an ad hoc basis during the period of serious commodity shortages
(2005 - 2008).
The potential
niche markets for Zimbabwean products in the Diaspora (especially
the UK) are ethnic artifacts, hard-wood furniture, minerals and
products, organic agricultural products, leather products, cut flowers
and cotton products.
Limited information
on the existing trade and investment markets at home is a major
reason why most Zimbabweans in the Diaspora do not invest or participate
in any trade activities in the home country.
The lack of
adequate investment capital or money to procure high volumes of
tradable goods is a further impediment to trade and investment.
The current
volatile political and economic situation in Zimbabwe obviously
deters potential Diaspora investors and therefore must be normalized.
Additional conditions
that would encourage the Zimbabwean Diaspora to invest in their
home country include the following:
- Facilitation
of the free participation of the Diaspora in the political and
socio-economic processes in Zimbabwe (e.g. allowance to vote).
- Provision
of more information on the investment, market and trade situations.
- Strengthening
of institutions dealing with the Diaspora issues.
- Provision
of investment and trade incentives.
- Permission
of all legal migrants in the host countries to engage in economic
activities.
Download
full document
Visit the NANGO
fact
sheet
Please credit www.kubatana.net if you make use of material from this website.
This work is licensed under a Creative Commons License unless stated otherwise.
TOP
|
