Victoria Ruzvidzo Business Focus
It is interesting to note that in the past week, the church, private sector and other stakeholders have been singing from the same hymn in terms of the need to hit the ground running to rejuvenate the economy.Everyone is agreed that now that the elections are over, focus should be on improving the economy hence the standard of living.
It is with this in mind that as we seek to get the economy back on track, it is imperative that Zimbabwe factors in its skilled manpower in the Diaspora and the experience that these people have help develop this economy.

The Diaspora has continued to attract huge interest as a significant factor in global economics, with such organisations as the United Nations, World Bank, African Union, International Organisation for Migration and the African Development Bank, among others, dedicating research and survey to get a fuller appreciation of the diaspora.

Results in all these surveys indicate that the Diaspora has a huge impact on economies. In fact, tapping into migrant wealth, is a strategy that has helped grow and sustain economies globally.

Research has shown that certainly, the macro-economic impact of Diaspora remittances cannot be overemphasised.
Africa received at least US$40 billion a year in remittances as of 2010, a figure that quadrupled from US$10 billion in 1990. About 140 million Africans are believed to be living in the Diaspora.

For Zimbabwe, statistics show that remittances became increasingly important in from around 2007 when the country received US$361 million.
Increase in GDP

Then it accounted for 7,2 percent of the Gross Domestic Product.
This was a massive increase from a mere US$17 million in 1980.

Zimbabwe needs to conduct surveys to establish the extent and nature of its current Diaspora.
For many developing countries, the Diaspora has become a critical source of funding, particularly at a time when development aid has slowed while multilateral lending always has unpalatable conditions attached.

Arguably, this country is believed to have at least 3,5 million Zimbabweans resident in most parts of the world, some have had more than 20 years exposure in the mostly developed countries.

Of course, this lot has been crying foul over non-inclusion in the voting process and other areas they feel hard done by Government, but this should not blind them to the possibilities available for them to be part of the wave that should bring economic regeneration.

This is the place they call home and naturally they should be obliged to help develop it, if not for themselves but for their kith and kin who have remained here and also for posterity.

I have interacted with some of them and they are always following developments at home closely, with most of them registering a desire to see the economy firing from all cylinders.

Our economy needs the skills, the knowledge they have acquired and the experience on how things can be done more efficiently.
Statistics show that Zimbabweans are holding together such economies as South Africa’s particularly in the banking sector, information and technology and even the media.

Zimbabwean engineers, doctors, pharmacists, nurses, teachers are doing well in the United Kingdom, Canada, United States, Germany and other parts of the globe. Academics such as professors and doctors are sprinkled across Africa and the world at large. All these skills are required back home.

Investment from abroad
The Diasporans do not necessarily have to come back home, but Government and industry can come up with programmes through which the expertise can be harvested.

The country needs to turn the brain drain experienced a decade ago when the economy went through severe challenges into a gain for the country.
Benefits that include inflow of remittances, technology transfer, investment capital and increased trade flows can make a difference.

I know of a family of nine who migrated to the UK in the early 2000s and all these children have become pharmacists, chemical engineers, lawyers and computer experts whose knowledge Zimbabwe could use and become richer. The same can be said about the millions that are out there who have developed themselves academically.

These certainly have roles to play in Zimbabwe’s economy.
For instance in the education sector, professorial chairs can be established in universities and other colleges where the non-resident Zimbabweans can come periodically to impart their knowledge and skills.

In the manufacturing sector, those exposed to the latest machinery or way of doing things can induce technology transfer by alerting the economy to the latest there is.

Zimbabwe will soon need to resuscitate the manufacturing sector, for instance. This sector needs state-of-the-art machinery so those in the particular markets where specific equipment can be acquired should assist with information or contacts.

Furthermore, the Diaspora has a critical role to play in marketing trade and investment opportunities in this economy to the outside world.
Of course, the advent of the internet has brought the world closer, but sometimes the human face still remains critical, particularly in enticing tourists and other investors.

Of course, a major component that has leveraged many economies in Africa and Asia, mostly, are the Diaspora remittances.
As alluded to earlier, billions of dollars are being wired across the globe annually as money is send back home or directly into investment programmes.

The benefits for this economy are obvious. For instance, non-resident Zimbabweans sustained families in the 2007-2008 period when the economy was in turmoil.

It is estimated that at that point, at least 50 percent of urban households were sustained by the Diaspora community.
However, the global financial crisis has somewhat impacted negatively on earnings for the Diasporans hence the US dollars, British pounds or euros may not flow as much as they used to but in the same vain, there are others who income is growing, depending on profession and nature of job.

Growth of remittances
Initial research shows that in most countries, remittances have continued to grow despite the economic challenges. Zimbabwe needs deliberate monetary and fiscal policy interventions to create the programmes and packages through which non-resident Zimbabweans can actively participate in the economy.

An example is the US$50 Diaspora Bond launched in 2010 guaranteed by Government through CBZ.
This investment option has the potential to raise significant sums of money which can help build infrastructure and meet other capital requirements.

Countries such as Israel, India and Ethiopia have over the last few years launched Diaspora bonds that have raised large sums of money.
A Diaspora bond, according to the African Development Bank, is a bond issued by a country to its own Diaspora. It is established to tap into their assets in the destination country.

These bonds are widely seen as an alternative to borrowing from international capital market, multilateral financial institutions or bilaterally from governments.

Other initiatives have been launched in Zimbabwe before, but most of them appear to have lost steam.
However, this is the time to revisit them while introducing other strategies that can help harness the skills and funds that exported labour can bring to a country.

When asked in 2008 if African countries were making an effort to engage Africans living abroad, former UN Secretary-General Kofi Annan said:
“Although African governments have begun to recognise the potential contributions of the Diaspora to home country development, serious effort in terms of strategies and instruments to harness this potential is lacking.”

This statement holds true even now, five years later.
Elsewhere on this page I reproduce an article on an initiative proposed by the African Union last year to harness the Diaspora.

In God I trust.

Email: [email protected]

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