Diaspora Dollars: How UK-based Zimbabweans became the country’s top senders

Zimbabwe’s diaspora remittances rose 14 percent to a record $2.45 billion in 2025, with the United Kingdom narrowly overtaking South Africa as the largest source of money sent home by citizens living abroad, according to central bank data.

Zimbabwe received $709.6 million from the UK, compared with $702.6 million from South Africa, a difference of less than $7 million. South Africa has long been the main destination for Zimbabweans seeking work abroad, while the figures underscore the growing importance of the UK-based diaspora as a source of foreign currency.

The data came as Zimbabwe Diaspora Week ended Aug. 9, highlighting the contribution of Zimbabweans living in the UK, United States, Australia, South Africa and other markets. Remittances help households pay for education, medical care and housing, while also supporting property purchases and small businesses.

The funds have also become an important source of foreign currency for Zimbabwe as the country faces limited access to international financing and pressure on foreign-currency liquidity. The record inflows show the growing role of Zimbabweans abroad in supporting household spending and economic activity at home.

UK narrowly overtakes South Africa

The UK narrowly overtook South Africa as Zimbabwe’s largest source of remittances in 2025, with Zimbabweans in Britain sending about $7 million more than those in its neighboring country. The result underscores the growing importance of the UK-based diaspora to Zimbabwe’s foreign-currency inflows.

South Africa remains a major source of remittances because of its proximity, relatively easy access and decades of labor and migration links with Zimbabwe. The UK, meanwhile, has become an increasingly important source as its large Zimbabwean community sends more money home. 

The UK and South Africa together accounted for more than half of Zimbabwe’s recorded remittance inflows in 2025. The US, Australia and other countries made up the balance of the $2.45 billion received during the year.

Remittances now account for more than 8 percent of Zimbabwe’s economy, according to official estimates, making them an important source of foreign currency alongside exports and foreign investment. The money also supports household spending, housing, property purchases and small businesses, extending its impact beyond individual families.

Formal channels remain a challenge

The rise in recorded remittances may not capture all the money Zimbabweans abroad send home. High transfer costs, gaps between official and market exchange rates and concerns about financial institutions can push some transfers into informal channels, leaving them outside central bank data.

That creates a challenge for policymakers, who need to keep Zimbabwe attractive to its diaspora while making formal transfers cheaper and easier. Bringing more remittances into the regulated financial system would give authorities a clearer view of foreign-currency inflows and could strengthen the financial system.

The economic impact could also be greater if more diaspora funds were directed toward businesses and other productive activities that generate income and jobs, rather than mainly covering household expenses. That would allow remittances to play a larger role in supporting domestic investment.

Zimbabwe’s experience reflects a broader African trend, with remittances becoming an increasingly important source of foreign exchange in countries where they rival or exceed other external financing. The record $2.45 billion received by Zimbabwe in 2025 underscores the growing importance of citizens abroad, whose support for families has become a major source of foreign currency for the economy.