By A Correspondent| At a TEDxCapeTown event held in Capetown a few days ago, acclaimed cleantech entrepreneur Kumbirai Makanza shared his inspiring story as a first-generation economic migrant from Zimbabwe, highlighting remittances’ transformative impact on the global economy.
His talk highlighted the positive, yet often overlooked, contributions of migrants to their home countries.
“When you turn on your television, you are bombarded with horrific headlines of migrants dying at sea or xenophobic violence,” Makanza said.
“But the real headline should be how millions of migrants across generations have managed to integrate well, earn a living, and support their families back home.
“This is the story of remittances. This is my story.”
Makanza’s speech focused on how remittances, money sent by migrants to their home countrie, have grown to far surpass foreign direct investment and official development assistance in many low- and middle-income countries.
According to Makanza, migrants globally send close to $700 billion every year to support their families and communities.
He stated that these remittances have proven resilient, even during economic downturns like the COVID-19 pandemic.
“The power behind remittances is not magic but strong emotional family bonds. Migrants are willing to cut spending and draw on savings to continue supporting their families,” Makanza remarked.
“However, despite these sacrifices, the tragedy is that remittances have done very little to transform these countries.”
Makanza called for a shift in how remittances are used, urging migrants to move from merely supporting their families to uplifting them.
“More remittances need to be channeled towards sustainably developing and investing in the people, communities, and countries from where we come from,” he said.
In a personal anecdote, Makanza explained how sending a $100 birthday gift to his mother dwindled to $75 due to high transaction costs and other deductions.
“The real tragedy, though, was how the $160 was spent, on groceries, electricity, and water, all consumptive uses with no return on investment,” he added.
Makanza also presented practical solutions, advocating for investment in renewable energy as a way for migrants to uplift their communities.
“Renewable energy remittance investments can happen at family, community, and national levels,” he said.
Makanza urged fellow migrants to consider investing in solutions like solar-powered chicken coops or irrigation units that could generate revenue for their families and support long-term development.