The PASSOP research report on remittance flows from South Africa to Zimbabwe, ‘Strangling the Lifeline’, has made headlines since it was launched last week. The author of the report, our Programme Coordinator David von Burgsdorff, was interviewed on CNBC Africa’s Beyond Borders show on Wednesday evening - the full interview can be viewed here. The findings of the report were also featured in numerous other articles, ranging from Bloomberg News, The Business Day, UK-based SW-Radio Africa, to SABC.

We are happy that the findings have been widely disbursed and have raised awareness around this important issue. Indeed, remittances flows from South Africa to bordering countries is an area where there is huge potential for improvement in policy-making. The impact of more forward looking policies that leverage these remittance flows would surely be substantial for poverty alleviation and development in Zimbabwe and other neighbouring countries. We will keep pushing for the recommendations we have put forward to be translated into reality.

Press statement for immediate release:

‘Serve us, don’t beat and deport us’

PASSOP will be joining hands with Asylum seekers tomorrow and protesting against the use of violence by government contracted staff. While we cautiously welcome some of the latest undertakings made by South African Department of Home Affairs, we feel that much more needs to be done.

The protest will be held at the Cape Town Maitland Refugee Reception Office tomorrow, Friday 13th of May, from 10:30 to 12:00

The protest dubbed ‘serve us, don’t beat and deport us’, aims to exert pressure on the Department of Home Affairs to further improve its services to refugees and asylum seekers. Our protest has been provoked by the horrific treatment of asylum seekers in at the Refugee Reception Office in Marabastad and the on-going violent treatment at refugee reception centres across the country. While acknowledging the undertakings made today at the weekly media briefing by Home Affairs Director-General Mkuseli Apleni, we want those who authorized the use of sjamboks on queues and those who assaulted asylum seekers to be held accountable.

Our protest comes at a time when there are mounting problems at the refugee reception centres including poor service, delays in the issuing of documents, frequent “running out of paper and forms”, poor queuing conditions and prohibitive policies and practices among other factors which inhibit the documentation of immigrants. In light of the many problems at the Refugee Reception Offices including the Cape Town Refugee Reception Centre and other parts of the country, we will also express our concern about the resumption of deportation of immigrants by the South African government at this point in time. We remain steadfast in opposing the inhumane practice of deportation without giving immigrants in the country adequate opportunity to be documented.

We believe deportations will not stop the influx of immigrants into South Africa, but are rather a waste of taxpayers’ money. Instead of deporting people, our desire is to see the Department of Home Affairs making efforts to create an environment conducive for the documentation of immigrants.

For comment, please contact, Langton Miriyoga on 084 026 9658 or Braam Hanekom 0843191764

These and other findings of a new PASSOP Report on remittances to be submitted to the South African Reserve Bank and the Department of International Development and Cooperation.

A new research report by PASSOP, “Strangling the Lifeline - An analysis of remittance flows from South Africa to Zimbabwe”, has found that 91% of Zimbabwean migrants in South Africa send money home regularly (these transfers are called remittances). The report, based on interviews with 350 Zimbabwean migrants - the largest sample size on the issue in the last five years - also found that the average amount remitted by migrants was almost a third of their monthly income. Taking into account that an estimated 1.5 - 2 million Zimbabweans have emigrated to South Africa over the past decade, the report estimates that ZAR 5.1-6.8 billion ($700-850 million) were remitted in 2011, making remittances one of the most important sources of foreign currency inflows for Zimbabwe. Remittances are relied on to sustain the livelihoods of up two-thirds of Zimbabwe’s remaining population. South Africa’s renewed practice of mass deportations is therefore a serious threat to the livelihoods of thousands of families in Zimbabwe who are dependent on remittances, the report goes on to argue.

Another interesting finding of the research report is that roughly three quarters of migrants prefer using informal channels (bus drivers, friends, etc.) to remit money, rather than formal channels (banks or money transfer operators such as MoneyGram or Westsern Union), despite the lack of reliability and inefficiency of informal channels. These informal flows are unrecorded, and therefore the size of remittances flows has been hardly known and scarcely reported on in the past.

Perhaps the most surprising finding detailed in the report is that despite the proximity of Zimbabwe, and despite the large market that exists for remittances, the cost of sending remittances from South Africa to Zimbabwe is amongst the highest in the world. The average cost was found to be 12-15% of the amount remitted - the costs in comparable corridors, such as Mexico-US are much lower, at 3-5%. The implication of this is that the amount of money that actually reaches families in Zimbabwe, and hence the impact it has on poverty reduction and development, is much lower than it could be.

If the development gains for Zimbabwe are to be maximised then the ‘formalization of remittance flows’ must be fostered through the implementation of a number of key reforms. The report cites a list of recommendations to reduce inefficiencies, bring down costs and improve accessibility of formal channels, as well as facilitating flows and leveraging their development impact by providing the appropriate channels, financial education and effective incentives to migrants.

Perhaps contrary to initial impression, the report argues, it is in the interest of the South African government to facilitate the formalization of remittance flows. Rather than increasing the volume of flows, the effect would be to make flows more transparent and to increase the liquidity and efficiency of the financial sector in South Africa. Thus, remittances from South Africa to Zimbabwe represent a huge source of untapped potential for development on both sides of the border that is currently being mitigated by high transfer costs and impeded by stringent and inefficient regulations.

If the formalization of remittance flows is pursued comprehensively, remittances could realise their potential and play an invaluable role in the reconstruction of the Zimbabwean economy. This, in turn, is the only way to address the high currently high level of Zimbabwean migration to South Africa.

The full report will be published at a launch in Cape Town (Idasa House, 6 Spin Street) tomorrow, Wednesday April 11th at 11AM. The author of the report, David von Burgsdorff, will be joined on the panel by Professor Brian Raftopoulos and Mr. Braam Hanekom. Members of the media are invited to attend. The full report is available here.

For more information or comments contact: David von Burgsdorff (Programme Coordinator) 074 660 2583

Around 150 PASSOP members, immigrants, asylum seekers and activists yesterday marched to Parliament to express their desire to get documented.

There is a common misconception that ‘illegal’ immigrants choose not to be documented. In the eyes of many, their alleged defiance of the rules justifies that they should be deported. This misconception also spawns the widespread anti-immigrant sentiments.

In fact, the vast majority of immigrants in South Africa want to be documented - the Department of Home Affairs just makes it extremely difficult for them to do just that.

At a time in which immigration raids have begun all over the country, and tensions in many communities have been on the rise, the march yesterday was meant to highlight this important issue.

The assembled immigrants expressed their frustration that they are viewed as ‘illegal foreigners’ that ‘choose not to be abide by the laws’. As one protester put it: “I am an immigrant without documents - even though I have tried and tried to get documented. I am not a thief, I am not a criminal, and I am tired of being treated like one. ”

Another added “I am teacher, with 20 years of experience in Zimbabwe, and here, I am not allowed to work. There are thousands of schools in South Africa that don’t have enough teachers, and still, they don’t let us work. Why?”

It is no exaggeration to say that South Africa currently no policy in place that acknowledges the reality of migration in Southern Africa. The only people who are able to attain work permits are those holding PhDs or other advanced qualifications. Everyone else, from teachers to nurses to farm workers, are left out.

South Africa can gain a tremendous amount by giving these immigrants a chance to work legally, including much-needed skills transfers, productivity growth and increased economic output, to name just a few.

Instead of doing this, South Africa’s policies in the past and at present have given most migrants no other option but to be undocumented. Such a policy is short-sighted and unhelpful, because it only increases migrants’ dependence on state resources and deprives South Africa of the huge developmental potential that migration presents.

The bottom line is that migration is a reality that is here to stay. It can either be dealt with in a reactionary way or it can be strategically managed to maximize its development potential for both South Africa and its regional partners. The government no doubt needs to move from the former to the latter.

Immigration policies need to move from being exclusive and reactionary to being inclusive, progressive and, most importantly, acknowledge the realities on the ground. Only in this way will South Africa be able to reap the development potential of migration and live up to its regional responsibilities.

PASSOP aims to work hard to stimulate constructive debate around these issues and advocate for these changes in the coming months leading up to the ANC Conference in Mangaung in July.

Opinion piece written by PASSOP Programme Coordinator, David von Burgsdorff.