Diaspora remittances are projected to reach US$3.1 billion by the end of 2026, up from US$2.8 billion in 2025, significantly improving the current account performance.

Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, said diaspora remittances surged by 41% year-on-year to reach US$1.5 billion during the first half of 2026 from US$1.1 billion realised during the same period in 2025.

“The increase in remittances significantly contributed towards the growth of the current account surplus,” he said in the 2026 Mid-Term Budget and Economic Review.

He added that foreign currency receipts increased by 47.8% to US$10.7 billion for the period from January to June 2026, compared to US$7.3 billion received during the same period in 2025.

The Minister highlighted that the growth was primarily driven by increases in export receipts, diaspora remittances, and private sector loans.

“Despite the subdued global growth prospects and geopolitical and trade tensions, the country’s external sector position has demonstrated remarkable resilience,” he said.

Export receipts and diaspora remittances accounted for 70.3% and 14.4% of the total receipts, respectively, for the period from January to June 2026.

Foreign currency payments increased to US$7.3 billion during the first half of 2026, representing a 44.9% year-on-year growth compared to US$5 billion recorded during the same period in 2025.

“The elevated foreign currency inflows compared favourably with foreign currency payments, resulting in a net surplus which boosted foreign currency deposits within the banking sector as well as foreign currency in circulation. This development played a pivotal role in supporting exchange rate stability and enhancing confidence in the foreign exchange market,” the Minister said.

Prof Ncube noted that the current account is also estimated to have registered a surplus of US$616.3 million, a turnaround from a deficit of US$22.5 million recorded in the corresponding period of 2025.

He added that the current account balance is projected to improve from a surplus of US$2.1 billion in 2025, to US$2.6 billion in 2026, reflecting stronger export performance and sustained secondary income inflows.