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Advances in Social Sciences Research Journal – Vol. 9, No. 5
Publication Date: May 25, 2022
DOI:10.14738/assrj.95.12160. Machikicho, S., Magura, J., & Magura, T. T. S. (2022). The Impact of Covid 19 Lockdowns on Remittance Dependent Households:
The Case of Makokoba, Bulawayo. Advances in Social Sciences Research Journal, 9(5). 330-342.
Services for Science and Education – United Kingdom
The Impact of Covid 19 Lockdowns on Remittance Dependent
Households: The Case of Makokoba, Bulawayo
Susan Machikicho
Women’s University in Africa
Department of Development Studies (PhD Student)
Juana Magura
Department of Development Studies
University of Science and Technology (PhD Student)
Tennyson T. S. Magura
Department of Development Studies
University of Science and Technology (PhD Student)
ABSTRACT
Remittances continue to be an integral part of livelihood strategies that have been
used for a long time particularly in low-income nations. They remain critical for the
survival of recipients at household level. The study seeks to unravel the adverse
effects on sustenance and survival of households in Makokoba that has been caused
by the novel corona or Covid-19. The research methodology underpinning the study
is qualitative with interviews and questionnaires being used to collect data to
establish the impact of low remittances on receivers from the diaspora family. The
study found out that the majority of households rely on remittances from the
diaspora families for sustenance and that due to the Corona Virus, loss of jobs has
had negative impacts on the senders hence their inability to remit back home. The
study furthermore, noted that remittance dependent households in Makokoba have
been left vulnerable as they struggle to meet their basic daily needs. The study also
revealed that they have turned to unsustainable income that can hardly sustain
them. However, the study recommends the need for the government and its
stakeholders to come up with alternative measures to reduce over-reliance on
remittance inflows.
Keywords: Coronavirus, Covid 19, Remittances, Households, Sustenance, Vulnerable
INTRODUCTION
The impact of Covid 19 and remittances on livelihoods in Bulawayo’s Makokoba suburb has
been greatly affected by the pandemic as it resulted in loss of employment and in some cases
no remittances being sent back home. Makokoba’s households largely derive their livelihoods
from remittances from countries such as South Africa, Botswana, Namibia, the United Kingdom,
United States of America and Australia. Migration and remittances are well recognised as they
impact immensely on the development discourse, particularly in low-income countries.
Remitting of money, gifts and services have become economically significant to households,
individuals, communities and commercial establishments over the years, (Magunha, Bailey, &
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Machikicho, S., Magura, J., & Magura, T. T. S. (2022). The Impact of Covid 19 Lockdowns on Remittance Dependent Households: The Case of
Makokoba, Bulawayo. Advances in Social Sciences Research Journal, 9(5). 330-342.
URL: http://dx.doi.org/10.14738/assrj.95.12160
Cliffe, 2009). Remittances are financial inflows resulting from the cross-border migration of
citizens of a country or the transfer of goods and cash sent by a migrant in the host country.
However, millions of people across the world are at risk of falling into extreme poverty as job
losses are being experienced as a result of Covid 19 restrictions/lockdowns. Closure of borders,
restrictions on trade has disrupted the chain of supply, decimated jobs that have placed millions
of livelihoods at risk.
As of 2006, Latin America and the Caribbean were the highest recipients of remittances with
East Asia and the Pacific following lastly Sub-Saharan Africa. In some contexts, remittances are
seen as livelihoods diversification, a survival strategy at the household level and an investment
in economic activities (Nzima , Duma, & Moyo, 2016). In Bangladesh, remittances are found to
promote growth but not so in India. (Abayie, Awuni, & Adjiel, 2020) believe that there is no
relationship between economic growth and remittances’ indicating that the impact is mostly at
the household level and more emphasis for the wider development is on foreign direct
investment. This is in line with the view by (De Haas & Flahuax, 2016) who concluded that
migrant-receiving countries tend to separate migration from the wider development policies
even though the notion of migration hinges on poverty alleviation which in itself is a
development issue. However, both India and Bangladesh had recorded successful remittance
flows until the Covid 19 pandemic which has seen a significant slump in the inflows.
(World Bank, 2020) estimated a drop of 9% of remittances to India and a 25% decrease for
Bangladesh. The impact of Covid 19 has been quite significant for Mexicans as well who mainly
derive their remittances from migrant families in America and to this end, massive job losses in
the host country have had an impact on remittance inflows as America grapples with the virus.
As of September 2020, 25% of Americans had at least one member of their household laid off
(Galstyan & Galstyan, 2021). (Michler, Kilic, & Josephson, 2020) concur that the spread of the
Covid 19 virus has resulted in the contraction of the global economy, hence remittances are
under threat.
Remittances stimulate growth and development back home. However, due to Covid 19
pandemic, the pattern has significantly changed as a result of job losses worldwide. According
to the (World Bank, 2020), a 23.1% decline in remittances to Africa will be experienced.
(Bisong, Ahaime, & Njobe, 2020), aver that Covid 19 restrictions have affected the flow of
development finance, particularly to Africa. Sectors such as tourism, hospitality, construction
and manufacturing that employ most migrant workers have been under threat. As with most
sub-Saharan African countries, Gambia and Liberia are illustrative examples of countries that
highly depend on remittances and as of the end of 2020, the countries have recorded low
remittances that have affected 60% of households dependent on them. Kenya recorded
remittances as the highest source of foreign currency ahead of coffee but is currently facing its
lowest remittance inflows yet.
It is interesting to note that Zimbabwe, the economic hardships characterising the lives of most
Zimbabweans have significantly seen the rise of skilled and semi-skilled labour out-migration
from 2000 to date. The motivation for migrating, over the years, has been necessitated by
remitting back to the family. (Bloch, 2008) concurs that migrants always maintain strong ties
with family back home by improving their livelihoods given the high rate of unemployment in
the country. As the socio-economic conditions worsen, out-migration has also been increasing
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Advances in Social Sciences Research Journal (ASSRJ) Vol. 9, Issue 5, May-2022
Services for Science and Education – United Kingdom
as one of the solutions for survival. (De Haas & Flahuax, 2016) posit that when a household
member migrates there are high expectations that they will send remittances in the form of
cash and goods.
Citing the critical role of remittances to the economy, a plethora of policies by the government,
through the Central Bank have been put in place to promote the official flow of remittances
(Ministry of Economic Planning and Investment Promotions, 2016). Resultantly, the flow of
remittances at both national and household level have been negatively impacted by the novel
Covid 19 pandemic leaving dents on receiving families and individuals. It has proved to be one
of the greatest health challenges to mankind (World Bank, 2020). As the virus ravages, those
who rely on remittances including families in Bulawayo urban’s Makokoba suburb have not
been spared citing a loss of livelihood and therefore an increase in poverty.
OVERVIEW OF THE LITERATURE
Remittances characterise an imperative apparatus for poverty reduction by ensuring the flow
of financial resources from migrants to households in other countries. The Covid 19 crisis has
evolved into a health and economic crisis affecting financial flows globally. As the crisis
continues there is uncertainty on the devastating impact on remittances flows to countries of
origin as no continent has been spared by the pandemic. This paper aims to give an outlook of
the effect of Covid 19 on South African and international remittances and livelihoods to
households in countries of origin particularly Zimbabwe.
The conceptualisation of terms- Household, Remittances and Livelihoods
Households that receive remittances have certain features such as having a family member
abroad or specific prerequisites owing to their composition (perhaps they have more
dependents or elderly members). Furthermore, migration and care need influence household
dynamics. In the case of migration, the migrant is tied to the household by residential
entitlements and family obligation as stated by (Elmhirst, 2008). The family that is left behind
has to run the household, hoping to receive remittances. Despite the concept of the household
being multidimensional, it is more dimensional and culturally comparable than many more
frequently studied concepts (Niehof, 2011). A household is defined as a co-residential unit,
usually family based in some way that takes care of its resource management and primary
needs of its members (Rudie, 1995).
The start of the 21st century has seen a dramatic renewal and economic analysis of remittances.
(Borici, 2015) defines remittance as the money or goods that are transferred by the migrant
worker working outside their country of origin to their households (in the country of origin).
Migrants remit for various reasons including the decision to send money conditioned by
income, the motivation to share the income with the household of origin.
The creation of livelihoods through remittances has been tackled by several researchers.
(Chambers & Conway, 1992) define a livelihood as comprising the capabilities, assets
(including both material and social resources) and activities required for the means of living. A
livelihood is sustainable when it can cope with and recover from stresses and shocks maintain
or enhance its capabilities and assets, while not undermining the natural resources base
(Chambers & Conway, 1992). Most households in low-income countries pursue livelihoods
strategies with the primary concern to achieve food security and alleviate poverty. Remittances