Zimbabwe’s remittance boom drives demand for expanded financial services

Story by Owen Mandovha

DIASPORA remittances are emerging as a major source of foreign currency for Zimbabwe, with inflows projected to surpass US$3.2 billion this year, up from US$2.45 billion recorded in 2025.

Local financial institutions are now looking to tap into this growing market by expanding services beyond cash withdrawals to include loans and other financial products.

The anticipated growth is opening up opportunities for local financial institutions seeking to turn remittance inflows into a wider range of financial services.

Among them is Bard Santner, recently licensed by the Reserve Bank of Zimbabwe as a deposit-taking microfinance institution, which is looking to expand its reach in the international remittances market.

“Our view is that there is now increased liquidity in the market arising from remittances, and there are a lot of opportunities just beyond cashing out that we can do so by becoming a bank we can offer more, and this market is very essential for us going forward in terms of being a key anchor to the economy,’’ Bard Sartner Microfinance General Manager Mr Ngonidzashe Chikowore said.

Economic analyst Malone Gwadu says Zimbabwe’s diaspora remittance market presents significant opportunities for financial institutions to develop products that help recipients make greater use of the money they receive.

“The remittances ecosystem is becoming huge, and you don’t want money sent to people to be just withdrawn, but these banks can now provide loans and other related products based on remittances, so indeed we see many institutions going that route in the future.”

Other players in the deposit-taking microfinance banking space include international remittance company Mukuru and Success Microfinance Bank, reflecting growing interest in financial services linked to money sent home by Zimbabweans abroad.

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