Zimbabwe is turning to India for advice on how to track and regulate the flow of remittances from millions of its citizens who’ve emigrated due to the collapse of its economy.
The Reserve Bank of Zimbabwe last month sent a delegation to India, the world’s biggest recipient of remittances, to study how that country deals with the payments, which, for the Asian country, totaled $71 billion in 2014, it said in an e-mailed response to questions. The Zimbabwean central bank wanted to study how India regulates money transfer agents, how to gather data on remittances and laws related to money transfers, it said.
“India, is therefore, one of the best destinations for any country like Zimbabwe that want to study and learn how to attract, account and leverage on diaspora remittances,” it said.
Zimbabwe has seen a steady exodus of its citizens to neighboring countries such as South Africa as well as further afield after a failed land reform program that began in 2000 slashed exports and triggered a recession that has halved the size of the economy since then.
Last year remittances from citizens living outside the country rose 12 percent to $935 million and that figure is likely to rise to $1 billion this year, according to the central bank.