Unpacking the financial constraints and development limitations of remittances flows in Gokwe North, Zimbabwe

Abstract

This paper explores the challenges faced by recipients of financial remittances in rural Gokwe North District, in the Midlands Province of Zimbabwe. It is a qualitative empirical study couched in the Capability Approach of Amartya Sen which focuses on individuals' capabilities to achieve their objectives and well-being in life. The study essentially examines how structural and institutional constraints undermine recipients’ capabilities to convert remittances into sustainable development outcomes. The research interviewed 20 participants selected through purposive and snowball sampling to understand the major challenges faced by recipients of remittances and the strategies that can be employed to address them. Thematic analysis was employed to identify recurring patterns and meanings in participants' narratives of remittance receipt and utilisation. The study identified five interconnected challenges of limited access to financial services, dependency on remittances without sustainable development, poor financial literacy and management skills, high transaction costs and fees, and delays and unreliability in remittance delivery. These constraints do not operate in isolation but constitute an interconnected system of deprivation that systematically erodes remittance value and limits recipients' capabilities. The findings reveal that while remittances provide essential short-term relief for basic consumption, education, and healthcare, their transformative potential is severely constrained by infrastructural deficits, institutional weaknesses, and capability deprivations. Recipients are forced to rely on informal channels that expose them to high costs, exploitation, and unreliable service delivery. The study concludes that realising the developmental potential of remittances requires targeted interventions including financial literacy programmes, expanded rural agent networks, improved digital infrastructure, regulatory reforms to cap transaction fees, and integration of vocational training with remittance utilisation strategies. These interventions must be implemented in an integrated manner to address the interconnected nature of the identified constraints. In light of the above findings, improving financial literacy and access to formal financial systems is crucial to enhance the developmental potential of remittances.