By Own Correspondent

WORKERS in the diaspora contributed US$635,2 million in the year’s first half signaling a 7,1%  increase compared to the same period last year.

Presenting the mid-term budget review recently, Finance Minister Mthuli Ncube said the revenue category performed fairly well.

“Remittances increased by 7,1%, from US$593.2 million in the first quarter of 2024 to US$635.2 million in 2025. The remittances have had a favourable impact on the current account balance. To year end, remittances are projected to increase by 4.9% from US$2.6 billion in 2024 to US$2.7 billion in 2025, sustaining a positive current account balance.  Given the strategic importance of the diaspora community, the Government seeks to strengthen their role in the development of the country,” he said.

Ncube said the government is finalising the formulation of the diaspora policy, which will outline measures to promote remittances at a minimum cost and give guidelines on various investment initiatives.

During the period, direct investment inflows were estimated at US$184,9 million in the first quarter of 2025, up from US$103,5 million recorded in the corresponding quarter of 2024.

The inflows were mainly in the form of capital equipment, predominantly directed towards the mining and manufacturing sectors.

During the quarter, 207 new investment licenses were issued, marking a 44.8% increase compared to the corresponding period in 2024.

The successful launch of ZIDA’s digital investment license issuance system is anticipated to streamline processes, thereby enhancing investor confidence and operational efficiency.

Direct investment inflows are projected to grow to over US$600 million in 2025 with the major recipients being energy, mining and manufacturing sectors.