By Hillary Munedzi
While Zimbabwe’s diaspora community continues to be a significant driver of the country’s economy, with remittances surging to US$1.9 billion in the first nine months of 2024, money transfer costs remain prohibitive.
This emerged at the third Zimbabwe Annual Diaspora Conference (ZADC) held in Vumba, Manicaland Province on 10 – 12 April 2025.
The remittances figure represents a 16.5% increase compared to the same period in 2023.
The average global cost of sending money from the 49 remittance-sending countries is estimated at 7.8 %, to South Asia it costs about 5.01 % yet sending money to Sub-Saharan Africa costs 8.45 %, according to the World Bank’s Remittances Prices Worldwide report of September 2024.
This is more than twice what was recommended at the 2009 G8 summit labeled the 5×5 initiative, which meant to bring down remittance costs to 5% globally.
In Zimbabwe, this cost is exacerbated by the local tax regime, including the 2% IMTT tax on all domestic foreign currency money transfers.
In Zimbabwe, diaspora remittances now account for approximately 16% of foreign currency inflows, surpassing foreign direct investment and solidifying their position as the second-largest source of foreign exchange after exports.
But sending money to Zimbabwe is very expensive with each transfer agent having its charges and conditions.
For instance, InnBucks charges are 5% with 80% of that going to the government.
Transfer agents have also highlighted that they must import US dollars into the country so that they meet demand for local transactions which means the customer must pay more for the banking services.
Below is a summary of the remittance charges and conditions for sending money to Zimbabwe through various transfer agents:
Remittance Agents and Their Charges
Mukuru
Charge: 10% of the amount sent
Minimum Charge: Equivalent of US$2 for amounts starting from US$20.
Currency Options: Can send in USD and Rand.
IMTT Tax: 2% on domestic foreign currency transfers.
Western Union
Charge: Approximately 6% of the amount sent.
Additional Fees: Currency conversion fee if sending from a non-USD currency (e.g., Pound Sterling).
IMTT Tax: 2% applicable.
WorldRemit
Charge: Around 8% of the amount sent.
Currency Options: Only USD.
Additional Fees: Currency conversion fee for sending from countries with currencies other than USD (e.g., Pound Sterling).
IMTT Tax: 2% applicable.
Mama MoneyCharge:
Flat rate of 5%.
Currency Options: Not specified.
IMTT Tax: 2% applicable.
InnBucks
Charge: 5% with 80% of that going to the government.
IMTT Tax: Implicit in the overall charge structure.