7 February 2018

Zimbabwe: RBZ Says to Introduce Special Diaspora Accounts

Photo: The Herald
Reserve Bank of Zimbabwe building in Harare

The Reserve Bank of Zimbabwe (RBZ) will soon launch ring fenced diaspora investment accounts with local banks as the financial institution strives to lure more foreign investment and ease biting foreign currency shortages.

RBZ governor, John Mangudya, said the decision is guided by the contribution of diaspora remittances in the country's economy.

"The accounts which shall be for investment purposes or for holding funds earmarked for undertaking investment projects in Zimbabwe purposes, shall be funded from an offshore and shall be entitled to a seven percent diaspora remittance incentive from the RBZ over and above the interest charged by the bank," said Mangudya presenting the monetary policy statement this Wednesday in Harare.

Mangudya also announced the coming of tobacco and gold financing bonds for the same target population as the authority seeks to boost capital and export earnings.

"The tobacco production financing bond will be issued to Zimbabweans in the diaspora to finance production. Bond holders will be paid capital plus interest as a single bullet payment at the end of the tobacco season," he said.

Diaspora remittances account for about $1 billion annually.

With the new government preaching economic reforms and investment security, Mangudya hopes elusive investment maybe attracted and that the diaspora maybe more willing to risk it.

Recently, the Zimbabwe Diaspora Investment Group, a group of Zimbabwean businesspeople based in the United Kingdom, had a trade mission in the country exploring areas of investment.

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