GOVERNMENT says Zimbabwe’s foreign currency receipts have increased by 17,9% for the nine months ended September 2024 to US$10 billion from the comparable period last year propelled by growth in export receipts and diaspora remittances.
In the same period last year, export receipts were US$8,5 billion.
Presenting the 2025 National Budget yesterday, Finance, Economic Development and Investment Promotion minister Mthuli Ncube said export receipts and diaspora remittances accounted for 59% and 25%, respectively, during the period under review.
Ncube said remittances would continue to drive the current account surplus and are projected to close 2024 at US$2,49 billion and improve to US$2,51 billion in 2025.
“On the foreign currency receipts, the country’s external sector position has remained resilient, as reflected by a notable increase in foreign currency receipts, which rose by 17,9%, to US$10 billion, during the first nine months of 2024, from US$8,5 billion received during the same period in 2023,” he said, adding the improvement in foreign currency receipts has positively impacted the country’s balance of payments position.
The Treasury boss noted that preliminary estimates indicate that the current account balance recorded a surplus of US$227 million in the first nine months of 2024, a significant improvement from the surplus of US$59,4 million recorded in the same period last year.
Ncube said the current account is projected to record a surplus of US$150,5 million and further improve to US$277,4 million in 2025, driven mainly by the resilient diaspora remittances inflows.
“The country experienced strong inflows through secondary income, contributing to the current account surplus, notwithstanding deficits registered in the services and primary income accounts,” he said.
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“In 2024, the current account is projected to record a surplus of US$150,5 million and further improve to US$277,4 million in 2025, driven mainly by the resilient diaspora remittances inflows and a projected narrower trade deficit.”
Ncube also noted that the merchandise exports increased by 3,3% to US$5,4 billion driven by mineral tobacco exports.
“During the first nine months of the year, merchandise exports stood at US$5,4 billion, an increase of 3,3% compared to the corresponding period in 2023. This export growth was primarily driven by growth in the exports of gold and tobacco,” he said.
“Mineral exports, which account for the largest share of merchandise exports, grew by 0,8%, from US$4,1 billion in the first nine months of 2023, to US$4,2 billion in 2024. The subdued growth is attributable to the depressed prices of PGMs [platinum group of metals] and lithium.”
He said the merchant exports are to grow by 2,8%, from US$7,2 billion in 2023 to US$7,4 billion by year-end and to US$7,9 next year.
“On the other hand, gold exports experienced a notable increase of 16,7%, rising to US$1,5 billion, on account of higher production, coupled with higher global gold prices which are being sustained by safe-haven demand, amid the prevailing global economic uncertainties,” Ncube said.
“To year-end, merchandise exports are projected to increase by 2,8% from US$7,2 billion in 2023 to US$7,4 billion in 2024, driven by surging gold and tobacco exports.
“In 2025, merchandise exports are expected to increase by 6,3%, to US$7,9 billion underpinned by growth in PGMs, lithium and agriculture exports, notwithstanding the depressed mineral commodity prices.”
Ncube said merchandise imports registered a 4,4% growth to US$6,5 billion in the first nine months of 2024, from US$6,3 billion recorded during the same period in 2023, mainly driven by fuel, food and electricity imports.
To year-end, merchandise imports are projected at US$9,1 billion, 4,9% up from US$8,7 billion in 2023.
In 2025, imports are projected to increase by 2,5% to US$9,3 billion on account of higher imports of energy, raw materials and machinery.
Diaspora remittances grew by 16,5%, from US$1,6 billion recorded in the first nine months of 2023 to US$1,9 billion in the corresponding period in 2024.
