The total export receipts for Rwanda in 2021 was US$2.1 billion and increased to US$2.9 billion in 2022. The interesting insight is in 2021, Rwandas exports equalled the Zimbabwe’s diaspora receipts for the year ended 2022! And in 2023 Zimbabwe received close to a billion dollars in the first 6 months. The expectation is to meet the US$2 billion mark by the end of 2023.

Therefore diaspora remittances do play a significant economic role in the country helping to provide liquidity and spur economic development. But as a nation do we have a solid diaspora engagement policy? Is it visible enough? What have been our key achievements over the past decades to engage and incentivise our foreign citizens to actively participate in business back home?

On this forum we do have tonnes of posts advocating for diaspora engagement but we eventually got tired of advocating for this. It is better to focus on what is controllable and that is individual businesses tapping into diaspora remittances value chain.

Judging from forum sentiments, the economy has been biting hard especially in September and October resulting in small businesses strategizing on operations with some relocating to cheaper rental premises-some in staff rationalization and other cost cutting measures. In Harare where office space had become difficult to find in recent years-in recent months the vacancy rates have shot up.

With Zimbabwe experiencing disposable income drought, businesses encouraged to diversify their risks through seriously considering how they can tap into diaspora remittances. Official estimates of the number of Zimbabweans in the diaspora difficult to establish but some put the figure at 5 million.

What are the diaspora interests in Zimbabwe?

Buying decisions: They are playing a crucial role in what products or services need to be procured such as meeting basic needs. Reaching out to the diaspora helps them make decisions and its easy for local companies to reach out to Zimbabweans in the SADC region. Digital marketing comes to the rescue.

Real Estate: One of the top needs of the diasporan community-property acquisitions or constructing own homes. From our forum, we have some who have mastered diaspora engagement in meeting their needs. If you are into the construction value chain-ignore diaspora at your own peril.

Entrepreneurship Projects: There is an increasing interest by the diaspora community in undertaking entrepreneurial projects back home. This is done as a safeguard especially due to insecurities around the ZEP permits for Zimbabweans in South Africa. Some are also supporting relatives back home involved in entrepreneurial projects.

Schooling: Some diasporas especially those around the region such as Mozambique and South Africa are opting for Zimbabwean education for their children. In the process they have direct involvement and interest in choosing schools for their children. Schools that reach out to the diaspora community therefore enjoy a competitive advantage over those that do not.

Funeral and Medical Insurance: Do we have local insurance companies reaching out to the diaspora as decision makers? Due to local laws, provision of insurance cover to the diaspora could be a challenge-but are they advertising their services to the diaspora community in Cape Town so that they could insure their relatives back home?

There is more that local companies need to do as a huge percentage of forex circulating in the economy can be traced back to the diaspora. Over the next 5 years the nation is expecting more than US$10 billion and more could come if incentives are put in place. Perhaps time for strategy rethink for local companies and be in the direct path of diaspora remittances.

The period July to October 2023 has literally been a dry period for the business sector as it was characterised by low disposable incomes as a result of a tight monetary policy regime. A lot of electioneering funding valves opened, but funds were not freely flowing to every economic sector. We have recently experienced an upsurge in criminality especially on our social media platforms and would therefore like to sensitize our members on possible risks from now till December 2023.

Bogus ZIMRA Audits: We have received reports of small business owners being phoned by bogus auditors and being asked to pay US$80 for audits. We urge you to contact ZIMRA directly for audits being carried out especially when asked to pay bribes. Most of the auditors are bogus—do not lose money.

Partnerships: Do not enter into new partnerships especially with strangers you would have met on social media. One famous scam on the forum is of a lady called Mai Tawana who misrepresented that she could buy fish from Kariba and sell to hotels such as Holiday Inn. She would produce fake financial reports and hoodwinking investors and one pastor lost more than US$45,000 to her. This is not the time to enter into partnerships with strangers.

Phishing Links: Do not lose valuable personal information through clicking malware links. Some of the links will come as sponsorships, scholarships or prizes. You will lose your accounts to social media including banking details.

Fake Proof Of Payments: Seemingly legit POPs will appear on your phone with scammers getting goods only for you to be shocked when the Money Transfer Agent says the POP is fake. Be wary of the timing as this scam is orchestrated before closing time when one has no time to confirm.

Counterfeit Farming Inputs: Avoid buying farming inputs such as fertilizer and seeds from the streets. Harare now has a massive and thriving industry of fake products manufacturing with a lot of warehouses dotted across Mbare.

Of course the list is obviously long and we will share more information in future.  Avoid the usual suspect—contracts in Victoria Falls—an old scam where victims are asked to send funds for bus fare and after doing so—the contractors witching off phones.

Farmers especially Poultry Farmers—avoid selling from your home as you could attract robbers. And try your level best to avoid congested areas in down town. The dollarization surge to also bring fake currency risks.

Hope you find this useful.