Remittances in Rural Zimbabwe: From Consumption to Investment?

Abstract

When remittances become widespread and stable in a rural village, they adopt a critical role in supporting local development. They contribute via the promotion of businesses and employment. Productive consumption creates opportunities for investment in growth oriented SMEs, whether their owners are receivers of remittances or not. This study used a new ethnographic technique to “follow the money”, consisting of recording several rounds of transactions in a village in rural Zimbabwe after the reception of cash from abroad. In this paper we argue that remittances contribute to local development in ward 2, Tsholotsho district in diverse ways.