A Zimbabwean family receiving remittances used for agriculture.

Remittances: A Lifeline for Zimbabwean Livelihoods?

Elliot Brynn in Global Affairs August 2025 • 4 min read.

"Uncover the impact of migrant remittances on families in Tsholotsho, Zimbabwe, and explore how these funds are shaping lives and local economies."

For many families in the developing world, money sent home by relatives working abroad—known as remittances—is a crucial source of income. These funds can help families meet their daily needs, invest in education, or start small businesses. But how big of an impact do remittances really have, and are they always a force for good?

A recent study focused on Tsholotsho District in Zimbabwe to understand the role of remittances in this community. Historically, men from this region have migrated to South Africa in search of work, and increasingly, women are joining them. These remittances have become deeply woven into the economic fabric of Tsholotsho, but their true impact is complex.

This article explores how remittances are used in Tsholotsho, examining whether they primarily serve as a safety net for basic needs or if they are driving investment and long-term development.

Tsholotsho's Economy: How Remittances Fill the Gaps

A Zimbabwean family receiving remittances used for agriculture.

The study reveals a challenging economic landscape in Tsholotsho. Limited local industry and lack of diverse job opportunities leave many residents struggling. Agriculture, traditionally a mainstay, is often hampered by drought, making it unreliable. Many locals are unable to compete for government jobs due to educational disparities, further limiting opportunities.

As a result, many households depend on remittances to make ends meet. The study found that a significant percentage of residents are either unemployed or engaged in informal trading. Self-employment opportunities are limited, and the income generated is often insufficient for a sustainable livelihood. This paints a picture of a community heavily reliant on financial support from relatives working in South Africa.

Low Employment Rates: Only a small percentage of household heads are formally employed.
Informal Sector Dominance: Many rely on small-scale trading, which provides limited income.
Educational Barriers: Lack of access to quality education hinders the ability to secure stable jobs.

Without remittances, many households face significant financial strain. The study highlights that a large majority of households report insufficient income to cover their basic needs. Migrant remittances are essential, allowing families to buy food, farm inputs, and other necessities.

Can Remittances Unlock Sustainable Development?

While remittances provide a crucial safety net, the study emphasizes that a more sustainable path forward requires investment and savings. Many households in Tsholotsho are eager to invest in livestock, small businesses, and other ventures but lack the capital to do so. Limited access to credit and unfavorable government policies further hinder their efforts to build long-term financial security. To foster true development, it's vital to address these systemic issues and empower communities to leverage remittances for a brighter future.

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Everything You Need To Know

What is the primary source of income for many families in Tsholotsho, Zimbabwe?

The primary source of income for many families in Tsholotsho, Zimbabwe is migrant remittances. These funds are sent by relatives working abroad, primarily in South Africa. This income is crucial for covering basic needs, as the local economy struggles with limited employment opportunities and unreliable agriculture due to droughts.

How are remittances used by families in Tsholotsho?

In Tsholotsho, remittances are primarily used to meet immediate needs such as purchasing food, farm inputs, and other essential items. The study highlights that a significant portion of households rely on these funds to cover basic necessities due to low employment rates, limited income from informal trading, and the lack of diverse job opportunities. Without these remittances, many families would face significant financial strain.

Why is sustainable development challenging in Tsholotsho, despite the presence of remittances?

While remittances provide a crucial safety net in Tsholotsho, sustainable development is hampered by several factors. Firstly, many households lack the capital to invest in ventures like livestock or small businesses. Secondly, limited access to credit and unfavorable government policies further hinder efforts to build long-term financial security. The dependence on remittances, while vital, does not automatically translate into sustainable development without addressing these systemic issues.

What are the key economic challenges faced by residents of Tsholotsho?

Residents of Tsholotsho face several economic challenges. The local industry is limited, and there's a lack of diverse job opportunities. Agriculture, which is a traditional source of income, is often unreliable due to frequent droughts. Educational disparities also limit residents' ability to secure government jobs. Consequently, low employment rates and dominance of the informal sector, such as small-scale trading, result in insufficient income, making many households heavily reliant on remittances from relatives working abroad, especially in South Africa.

How could Tsholotsho leverage remittances for long-term financial security and development?

To leverage remittances for long-term financial security and development in Tsholotsho, the community needs to focus on investment and savings beyond just meeting immediate needs. Addressing systemic issues is crucial. This includes improving access to credit, implementing supportive government policies, and empowering communities to invest in ventures like livestock and small businesses. This approach will help to foster a more sustainable path forward, moving beyond mere survival to building long-term financial security.