In Search of Remittance Mobilisation Strategies through Formal Channels In Zimbabwe: A Survey of Zimbabweans Living in South Africa and Botswana

Abstract

This study sought to identify strategies that Zimbabwe can adopt to formally mobilise remittances from its estimated 4 million migrants. The study was based on a survey of 203 Zimbabwean remittance recipients based in Harare and Bulawayo, and 164 Zimbabwean migrant workers in South Africa and Botswana. The respondents were selected using snowball sampling. We found that in Bulawayo and Harare almost 61% of remittances where received through formal channels. Banks are the least used formal channel of receiving remittances, and almost half of the recipients are unbanked. The unbanked recipient cited lack of trust in banks, high transaction and monthly charges, failure to meet bank requirements, little or nil interest on deposits as reasons why they do not have bank accounts. When choosing a remittance channel, recipients consider convenience, speed of transfer, and charges levied. We also found that a considerable proportion of remitters had no access to banks in host countries, lack of documentation and ignorance of bank services and products were cited as key reasons for failure to access banks. We urge the Zimbabwean government to formulate concrete measures of improving financial inclusion, create remittance linked products, pursue mobile cross boarder money transfers, adopt a comprehensive diaspora outreach policy, strive to earn trust and confidence of the diaspora, to establish interbank synergies, remittance databases/websites, and conduct financial literacy campaigns.