Migration and Local Development: The Multiplier Effect of Migrant Remittances on Non-recipient Households in Tsholotsho, Zimbabwe
Migration and Local Development: The Multiplier Effect of Migrant Remittances on Non-recipient Households in Tsholotsho, Zimbabwe

Summary/Abstract: Substantial policy and academic research on migration has focussed on migrant remittances to developing countries. That research has often given a positive evaluation of the impact of remittances on development, with specific reference to recipient households. However, there is limited research examining the indirect effect of migrant remittances on the development emanating from the activities of non-recipient households. Given the research gap, this paper seeks to examine the extent to which non-recipient households benefit from the flow of income and other material goods into their local economy. This study is based on a questionnaire survey (N = 159) and 15 semi-structured interviews. A key finding was that remittances have partly motivated the emergence of an entrepreneurial spirit in the local economy, with most of the local small businesses (including general dealer stores, bed and breakfast accommodation, construction companies etc.) run by non-recipient households. Non-recipient households have emerged as key entrepreneurial players in response to a high consumption demand amongst the recipient households. Profits generated through these small businesses are thus satisfying the basic needs of non-recipient households. Furthermore, a number of community projects are being financed through remittance income. These projects include food gardens, fishing and livestock farming which benefit both the recipient and non-recipient households.

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