Zimbabwe diasporans told to invest back home

Published: 07 June 2018

ZIMBABWEANS living in the diaspora should invest back home and be part of the country's transformation process, a top industrialist has said.

Donovan Chimhandamba, chairman of the Diaspora Infrastructure Development Group (DIDG) – the company which won the $400 million tender to resuscitate the National Railways of Zimbabwe (NRZ), said there is need for diasporans to address pertinent issues such as infrastructure, human capital development and good governance.

This, he said, will help Zimbabwe to leverage its strengths and benefit from its engagement with the rest of the world to unlock its latent potential.

"Diaspora should not be afraid to be the trailblazers and we should not wait for other countries to lead the project of rebuilding Zimbabwe," he said.

Chimhandamba noted that the southern African country has seen its darkest moments but was now slowly emerging from those ashes.

"Let not those dark moments discourage you from the opportunity that's in front of us. It is only in darkness can one see the shining stars. Zimbabwe like the phoenix, it will rise again. The sleeping giant has started stirring from its slumber.

"Let us stand together as diaspora and with great determination, let's be bold and take the mantle to lead the efforts of rebuilding our Zimbabwe. That is our legacy to defend as diaspora," he said.

The latest development comes at a time when the country is working on a three-prong approach to boost diaspora remittances into the country on the back of declines recorded from 2015 and 2016.

Zimbabwe is looking to boost diaspora remittances into the country after $698, 9 million of the same last year. The $698, 9 million diaspora remittances accounted for 49 percent of total international remittances ($1,4 billion) in 2017.

Reserve Bank of Zimbabwe (RBZ) figures show that an estimated $780 million in diaspora remittances in 2016. This was a drop from the $935 million recorded in 2015.

Diaspora have increasingly become one of the major source of import financing and government has in the past come up with measures to enhance diaspora remittances for economic development, for instance, the Diaspora Remittance Incentive Scheme that was introduced in 2016.

But government is looking to further enhance these remittances' significance to the economy. In his Monetary Policy Statement central bank governor John Mangudya set out interventions that the central bank had come up with to improve diaspora remittances into Zimbabwe.

The first of these is the Investment Desk that will specifically cater to Zimbabweans living and working outside the country.

"There has been increased calls for the establishment of a desk to facilitate Zimbabweans in the diaspora to participate in the development of their country through mobilising investments into all sectors of the economy," Mangudya said.

"Already, there has been a positive response to these calls as evidenced by the numerous enquiries from diasporans and international investors. Consistent with the tenets of the ease of doing business, in an open business environment, the bank has established a desk to assist those in the diaspora to get involved in the investment opportunities within the national economy."

The second initiative will see the issuance of Diaspora Tobacco and Gold Production Financing Bonds.

"The tobacco and gold sectors, if sustainably and adequately funded, have the potential to generate more foreign currency for the country. The Bank has also noted that small and start-up companies in the tobacco sector are failing to access offshore funding in line with the tobacco financing order," Mangudya said.

"In order to allow Zimbabweans in the diaspora to participate fully, or on a twinning arrangement basis, in the turnaround of the country's economy and exports generation, the Bank has opened up the issuance of well secured Tobacco and Gold Production Financing Bonds to diaspora investors."

According to the central bank, the Diaspora Tobacco Production Financing Bond will be issued to Zimbabweans in the diaspora to finance tobacco production. Bond holders will be paid capital plus interest as single bullet payment at the end of the tobacco season.

And the Diaspora Gold Production Financing Bond will be issued to Zimbabweans in the diaspora to finance gold production by small scale gold miners. With regards to this facility, the RBZ governor said coupon payments will be made on monthly basis as gold is sold to Fidelity Printers and Refiners.

The third initiative – the Incentive for Diaspora Investments Accounts in Zimbabwe – will see Zimbabweans in the diaspora being able to open Diaspora Investment Accounts with local banks of their choice.
- fingaz