Zimbabwe’s Pricey Passports Risk Undermining Vital Diaspora Remittances

Zimbabwe’s economy has long relied on diaspora remittances to sustain its people. Yet, the country’s restrictive policies on passport fees and foreign currency movement may be threatening this crucial lifeline.

Passport fees in Zimbabwe are among the highest in the region, with costs starting at $120 and rising to $250, depending on the urgency. Comparatively, South Africans pay around $34 for their passports. In Zambia, it’s just $19, while neighboring Namibia and Mozambique charge $22 and $37, respectively. For a nation reliant on its citizens working abroad, these exorbitant prices are alarming.

Peter Mutasa, secretary general of the Zimbabwe Banks and Allied Workers Union (Zibawu), pointed out the irony of a country that heavily depends on foreign currency from its citizens abroad, yet makes it prohibitively expensive for them to leave.

Diaspora remittances have become the largest source of foreign currency inflows for the nation, eclipsing foreign direct investment (FDI) and official development assistance, according to the World Migration Report.

While Zimbabwe continues to grapple with economic woes, millions of citizens have migrated to neighboring countries like South Africa, Botswana, and Mozambique, as well as further afield.

The remittances they send back home keep families afloat, pay for education, and help cover health costs. Without these remittances, many Zimbabwean households would face increased financial hardship.

However, the high cost of obtaining a Zimbabwean passport is creating an unnecessary barrier for those seeking better opportunities abroad. Mutasa argued that if the government slashed passport fees, it would enable more people to migrate for work, thereby increasing the inflow of much-needed foreign currency.

Mutasa criticized government policies restricting the movement of money across borders. A policy limiting individuals from carrying more than $2,000 across the border adds further strain to small-scale traders and businesspeople. These restrictions stifle trade, particularly for those who depend on cross-border commerce with Mozambique, South Africa, and Botswana to sustain livelihoods.

Zimbabwe’s history of economic instability, hyperinflation, and financial crises has forced the country to look outward for solutions. Many Zimbabweans are now economic migrants, contributing significantly to the country’s foreign currency reserves through remittances. These remittances are not just vital for individual households but also for the broader economy, as they provide a crucial buffer against economic shocks.

Despite this, the country’s economic policies seem at odds with its dependence on its diaspora. By limiting the freedom of movement—both in terms of people and money—Zimbabwe is effectively “sanctioning” itself, as Mutasa eloquently put it. This self-imposed restriction could hurt not only those seeking to migrate but also the economy at large, which desperately needs the foreign currency inflows that the diaspora provides.

Lowering passport fees would not only make it easier for citizens to seek work abroad but also enhance the country’s ability to tap into a larger pool of remittances. As the World Bank has noted, remittances play a critical role in poverty reduction and can help stabilize economies during times of crisis. Given the outsized role that remittances already play in Zimbabwe’s economy, failing to address these barriers could result in further financial hardship for the nation.

For Zimbabwe to fully capitalize on the potential of its diaspora, the government must take concrete steps to make migration easier. Reducing passport fees is one such measure. Additionally, easing restrictions on cross-border money transfers would allow small traders and businesspeople to continue generating income abroad and contributing to the local economy.

These changes would not only boost remittance inflows but also foster greater economic integration with neighboring countries. A more open policy on migration and currency flow could position Zimbabwe as a more competitive player on the global stage, while simultaneously addressing the immediate financial needs of its people.

Zimbabwe must weigh the costs of its current policies against the potential benefits of facilitating migration and remittances. With proper reforms, the country could harness the full potential of its diaspora, ensuring a more stable and prosperous future for all.

The Zim Bulletin