Migrant Remittances Inspired Enterprises in Tsholotsho: Issues of Sustainability

Abstract

Following unprecedented and protracted political and economic crises during the period spanning 2000 to 2009, Zimbabwe experienced increased migration of its populace to the diaspora. One notable positive result of this migration phenomenon has been an increase in the inflows of remittances, which have partly inspired the emergence of enterprises. In February of 2009, Zimbabwe introduced the multi-currency system, which introduced new dynamics related to the sustainability of these enterprises. This, coupled with the foregoing, called for the review of the sustainability of remittance-inspired enterprises to ensure their potential for survival in the interim and the long term. As such, the present study was guided by a framework produced by the International Labour Organization (ILO), which lists the six basic conditions necessary for nurturing sustainable enterprises. This study made use of both primary and secondary data that included a household survey carried out on 40 households and 10 key informant interviews. In line with five of the six pillars of the ILO framework, the study found the following: 1) there is a governance framework instituted by the District Council that regulates the operations of businesses; 2) the infrastructure to support businesses is either not in place or is in a poor state; 3) enterprises practice responsible stewardship of the environment; 4) the society and culture is supportive of enterprise formation; and 5) the macro-economic environment is riddled with uncertainties.

Keywords

• Migrant
• Remittances
• Sustainability
• Enterprises
• Zimbabwe