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.