Harare — Homelink was conceived primarily as a means of enabling Zimbabweans living abroad to send money home to their relatives and friends safely, reliably, quickly, legally and conveniently and for such purposes as purchasing a home.

However, when a Reserve Bank of Zimbabwe team visited Zimbabweans abroad to tell them about Homelink, it became evident that many Zimbabweans abroad wanted to use Homelink for more than this. They wanted to invest in Zimbabwe.

As a direct response to this, the Reserve Bank has introduced various measures to facilitate such investment.

It has given non-resident Zimbabweans wishing to invest in Zimbabwe the same status as foreign investors, provided the investments are funded from sources outside the country. This means they can repatriate to their country of residence their profits and dividends.

On the other hand they can have a greater shareholding in a company in Zimbabwe than a foreign investor would be able to have. Zimbabweans living and working abroad can invest up to 70 percent in companies listed on the Stock Exchange and up to 100 percent in unlisted companies.

Foreign currency bonds have been introduced with an attractive interest rate of 12 months London Interbank Offered Rate (LIBOR) plus six percent. The minimum investment in these bonds is US$1 000. The bonds can be traded. On maturity the full amount of the bond plus interest is paid to the bond holder in United States dollars.

Discussions have also taken place on possible measures to facilitate property investments by Zimbabweans living abroad.

A number of serious investment proposals have been received from Zimbabweans living abroad who are keen to take advantage of the opportunities the Homelink initiative has brought to the fore.

There are many other uses which money earned abroad can be sent back to Zimbabwe for, uses highlighted during the Reserve Bank team's foreign mission.

Ideas on some of these uses arose from a realisation that what might be expensive for Zimbabweans living at home was often cheap for Zimbabweans living abroad, due to the foreign exchange rate, which is unfavourable for those living in Zimbabwe but favourable for those living abroad.

A holiday in Victoria Falls, for instance, might be an unrealistic dream for many people in Zimbabwe. However, when the Zimbabwe dollar cost is converted into United States dollars or British pounds it becomes ridiculously cheap for a person earning pounds or US dollars.

As a result, suggestions were made that Zimbabweans abroad could easily afford to give their parents the holiday of a lifetime at negligible cost in US dollars or British pounds, simply because of the strength of these currencies compared to the Zimbabwe dollar.

The Homelink system could be used to make the payments to their parents directly or to make them to the tour operator or hotel concerned.

In the same way many Zimbabweans living abroad could pay medical aid subscriptions for their parents or other family members, using a money transfer organisation partnered with a registered Zimbabwe money transfer agency to send the money to the medical aid society.

Current costs of medical treatment have meant that it is difficult for many people to receive the treatment they need, if they are not covered by a medical aid society. While the cost in local currency of medical aid subscriptions has in many cases become prohibitive, the cost in US dollars or British pounds is affordable for many.

The same is true of many other services. There is great potential, therefore, for companies providing services like these to market them to Zimbabweans living abroad.

Zimbabweans living abroad have indicated they would be interested to know what is available for them to purchase or invest in back home.

It is important, however, that any money being sent to Zimbabwe for any of these purposes is sent through a money transfer organisation partnered with a licensed Zimbabwean money transfer agency.

Using black market channels is risky and illegal. It contributes to inflation and often deprives the country of the hard currency it would have had if the money had been sent through legitimate channels, since the foreign currency often remains in an account abroad.

Transferring money through legitimate channels, in other words through the designated partners abroad of licensed money transfer agents in Zimbabwe, on the other hand is a safe, legal, reliable and fast method of sending money and benefits the country, as the foreign currency becomes available to the foreign currency auction.