HARARE – Zimbabweans working in the Diaspora are earning US$30 billion a year and an expert in pensions, Albert Nduna has urged Government, business and pension funds to tap into this massive resource and use the money to start national projects that will benefit the country.
Nduna who is also the Insurance and Pensions Commission (ipec) chairperson called on Government and business to come up with a strategy on tapping into Diaspora earnings.
If tapped, the money can be used to build power plants considering the acute shortage of energy in the country, it can be used to invest in manufacturing and starting other critical industries, said Nduna who was speaking at the annual Insurance and Pensions Awards for the media held at the Rainbow Towers in Harare on Friday night.
“Zimbabweans in the Diaspora are said to be earning about US$30 billion per year and sending about US$4 billion back home. From this figure, it is prudent that business must have a strategy for the informal sector,” said Nduna.
He said by extending pension and insurance services to the Diaspora, the industry will also be playing the role of financial inclusion which is important for fostering socio-economic development and a driver for economic growth.
He said the Diaspora and the informal sector have become some of the biggest sources of money for the country where insurers can look to providing service. The informal sector holds US$57 billion or 60% of the country’s GDP, according to IMF.
Nduna said economic booms in many countries including Hong Kong, Singapore, South Korea and Taiwan commonly referred to as Asian Tigers is largely attributed to the significant contribution of the insurance and pensions industry. He said that the insurance industry therefore has a crucial role to play in the achievement of Vision 2030.