Exports up and NGO inflows shrink as national fore...

Exports up and NGO inflows shrink as national forex receipts rise 3.5% in first half of 2023

**Minerals make up most of Zimbabwe’s export earnings**

· Exports make up 55%

· Diaspora remittances at 16%

· NGO inflows shrink by 10.5%

Audrey Galawu

In its latest Monetary Policy Statement, the Reserve Bank of Zimbabwe has revealed that the country’s foreign currency receipts reached US$5,5 billion in the first half of the year due to exports and diaspora remittances among other top ten earners.

“The positive trajectory in foreign currency receipts continued during the first half of 2023, with total receipts increasing by 3.5% to US$ 5,595 billion compared to US$ 5,405 billion during the comparable period in 2022,” reads the statement.

Exports are pushing the earnings at 55%. Zimbabwe’s exports are mainly minerals and tobacco with China steadily becoming the destination for the largest chunk of Zimbabwean products.

Diaspora remittances played a significant role at 16% showing a growth of 15.3% during the period. Rising diaspora remittances are considered one the markers in confidence in the economy as a considerable percentage of such inflows are investments by foreign based citizens.

Loan proceeds stood at US$919 million while earnings based on foreign investment stood at US$127 million up from US$104 million signifying a 22,1% increase from the figure recorded in a comparative period last year.

Remittances which were injected to NGOs stood at US$514 million during the first half amounting to 9% in terms of overall contribution down from US$575 million earned in a comparative period last year to signify a decline of minus 10.5% during the period.