Finance minister Mthuli Ncubi confirmed the shift, noting that South Africa, traditionally the top source, will fall to second place at 27.5%.
The UK is expected to be the largest source of remittances to Zimbabwe this year, overtaking South Africa for the first time, according to Finance Minister Mthuli Ncube.
Official data shows four out of five Zimbabweans who live abroad are based in neighbouring South Africa, traditionally the origin of the bulk of money expatriates send home.
Zimbabwe’s Treasury estimates that 28.6% of $2.72 billion in remittances this year will emanate from the UK and 27.5% from South Africa.
The US, Australia, Botswana and Canada are the other key sources of such transfers, the biggest source of foreign exchange after mining exports, Ncube told lawmakers at the weekend ahead of a budget statement scheduled for later this month.
Regular economic crises in Zimbabwe, including bouts of runaway inflation and frequent currency crashes, have fueled emigration, and there has been a steady exodus of professionals to the UK in recent years, which has contributed to the higher remittances.
However, the UK government announced in May that it had scrapped care visas, which many Zimbabweans have relied on to secure access, citing “abuse and exploitation” of the migrants.
Source: Moneyweb
