Zimbabwe’s economic crisis fuels record travel to South Africa

The movement of Zimbabweans into South Africa in recent years is more than a travel trend; it underscores the structural pressures shaping Zimbabwe’s economy, from currency instability to constrained industrial growth.

Over the past decade, Zimbabwe has grappled with recurring inflation and exchange-rate volatility. The reintroduction of the Zimbabwe dollar in 2019, followed by repeated devaluations, weakened savings and dented business confidence. Companies have increasingly pivoted toward hard-currency platforms to preserve value and maintain investor appeal.

Cross-border mobility accelerates
In 2024, 2.18 million Zimbabweans travelled to South Africa, a figure reflecting mounting currency instability, inflationary pressure, and weakening domestic purchasing power.

Currency volatility persists, Inflation remains elevated, Exchange-rate gaps continue, and the outbound mobility to South Africa is unlikely to decline significantly in 2025. In fact, movement could remain elevated or moderately increase, particularly for trade and informal commerce, healthcare access, education and employment migration.

Corporate shift to currency stability
The strain is evident in capital markets. Strive Masiyiwa’s Econet Wireless Zimbabwe recently delisted from the Zimbabwe Stock Exchange, signaling a strategic shift toward the U.S.-dollar-denominated Victoria Falls Stock Exchange. The move reflects a broader corporate preference for currency stability and access to foreign capital pools.

At the consumer level, the stress is sharper. OK Zimbabwe, one of the country’s largest supermarket chains, entered business rescue amid liquidity constraints and declining purchasing power. Regional retailers have retreated over the years, with Shoprite exiting in 2013 and Botswana-based Choppies scaling back and leaving in 2024, citing operational and currency headwinds.

Macroeconomic volatility remains central. Persistent gaps between official and parallel exchange rates distort pricing structures, while foreign-currency shortages complicate imports. Wage growth continues to lag inflation, compressing household spending and narrowing formal sector activity.

Tourism resilience amid uneven recovery
Despite domestic strain, Zimbabwe retains globally competitive tourism assets. Victoria Falls remains one of Africa’s flagship attractions, complemented by safari destinations such as Hwange National Park and Mana Pools National Park, which draw high-spending international visitors.

However, tourism expansion has been uneven. Infrastructure limitations, air connectivity constraints, and investor caution temper growth. While arrivals have improved since the pandemic, sector revenues remain sensitive to currency distortions and broader economic perceptions.

The surge in outbound travel to South Africa reflects a different dynamic mobility driven by trade, healthcare, education, and employment needs rather than leisure.

Zimbabwe’s outlook hinges on restoring currency credibility, narrowing exchange-rate gaps, and rebuilding investor confidence. Without macroeconomic stability, even strong sectors like tourism face constrained multiplier effects in the broader economy.