Outcry over diaspora remittances Transfer agencies hit by forex shortage
DISGRUNTLED recipients of diaspora remittances in Bulawayo have been struggling to access their money in the last two weeks as banks and transfer agencies are said to have limited supply of foreign currency.
Long winding queues have become a common site in the CBD with members of the public saying they have been spending several hours in the queue while some say they have been coming to transfer agency offices for some days but could not get their money.
Diaspora remittances are a critical source of liquidity in the economy with more families relying on the revenue stream for support from their loved ones who work outside the country. A snap survey done by Business Chronicle since last week has revealed that some clients were now sleeping in queues with the hope of being served first in case money is available. MoneyGram, Western Union, Mukuru and Money Wave are among the affected service providers said to have unsteady supply of foreign currency.
Others offer their service through banks. Some clients claimed they were given only a part of their money and were being instructed to collect the rest at a later date.
They accused the remittance service providers of playing hide and seek with their money yet their families were dependent on the money, whose delay was compromising their payments and survival.
“It has been over a week now since my mother sent me money from South Africa for rentals but I am failing to get it. Everyday I approach the Western Union offices I am told to come back on the following day,” fumed one Western Union customer who identified herself as Ms Moyo.
Another client who identified herself as Mrs Thokozile Chaudi said her money had been returned back to South Africa after she failed to access it.
“My money was sent through FNB and I was supposed to collect it at MoneyGram but I have been failing to do so for the past two weeks and now the money has been sent back to South Africa,” she said. Among the clients at queues were the elderly, who could not stand for several hours.
Officials at Western Union and MoneyGram were not available for comment on the matter but their staff, speaking on condition of anonymity, only said they “have not been given enough money” from Harare.
Financial expert Mr Peter Mugodi suspected that the money transfer companies could not issue out money up to speed because of the high charges that the companies get against the shortage of foreign currency in the country.
“Some $44,6 million per year is the estimated average amount being paid in fees to move money from one country to another, including developed countries, so for developing countries it is rather too high and therefore causing problems,” he said.
With the Reserve Bank of Zimbabwe Governor, Dr John Mangudya, expected to deliver his Monetary Policy Statement today, Mr Mugodi said the problem needs to be fixed because remittances were key to improving financial inclusion. — @queentauruszw