eBusiness Weekly
Kudakwashe Mhundwa
HARARE – WorldRemit, says it has seen a 20 percent increase in transactions to cash pick up locations in Zimbabwe in the in the first half of October as compared to the same period in September.
In a statement, the global money transfer agent said the recent surge in cash transactions is on the back of partnerships with local banks and additional cash pick up points.
“This recent surge follows consistent growth in transactions sent to cash pick-up locations over the last year, since worldRemit stepped in to bring USD in cash into Zimbabwe.
“In November last year, WorldRemit began working with partners such as Steward Bank to guarantee cash receipts of transfers sent for cash pick up through WorldRemit. The network expansion means that WorldRemit offers cash at over 200 locations including Kaah Express, Quest financial services and ZB bank.
“Over the last six months, WorldRemit has added 10 new cash pick-up partners to its global network providing an additional 150 locations where recipients of remittances can collect cash,” read part of the statement.
For the past three years, remittances from Zimbabweans living abroad have been averaging $1 billion. This figure only accounts for funds sent home through official banking channels, as such the figure may be less than 70percent of the actual remittances into our nation as some funds are moved via traditional channels.
The amount has been growing exponentially from $552 million recorded in 2012 to over $935 million recorded in 2016 as a result of the Reserve Bank of Zimbabwe (RBZ) incentives to lure diaspora funds. The RBZ currently gives a 10percent incentive for all funds remitted back home. Remittances are now the second largest source of liquidity (more than tobacco exports) in the country after mineral exports.
In previous years state entities have taken a keen interest in diaspora remittances as they remain a lucrative source on investment. The Zimbabwe National Road Administration Authority recently floated a $100 million diaspora infrastructure bond after successfully raising $105 million from the previous infrastructure bond floated last year.
