THE logistics of working with cash in Zimbabwe pose significant challenges, but Mukuru Zimbabwe Financial Services chief executive officer Doug Tait-Knight believes embracing digital payments is crucial for a more efficient and competitive economy.
"Working with cash is a challenge due to the logistics involved and the risk landscape, which, although manageable in Zimbabwe, requires considerable personnel, logistical costs, and administrative efforts," Tait-Knight explained.
"However, by transitioning to a digital world, we can avoid these challenges."
Tait-Knight acknowledged that this shift would not happen overnight but emphasised Zimbabwe's existing familiarity with digital spaces.
"Many people, however, still don't fully understand the benefits of a digital economy. We aim to increase awareness and competitiveness in this space."
He highlighted the practical advantages of digital operations, such as 24/7 accessibility, which is not feasible with physical locations.
Tait-Knight also discussed the impact of currency fluctuations on supply and demand.
"Fortunately, local currency changes don't directly affect external economies or diaspora decision-making, unless they opt for the parallel market over formal channels."
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A significant challenge, according to Tait-Knight, has been convincing people to choose formal over informal channels due to concerns about safety, efficiency, and reliability.
"Our cash guarantee is a big difference; we have always maintained that over the years, and we have always had a healthy competition.” he said.
Mukuru has maintained a reputation for reliability and assurance, particularly during cash shortages. Tait-Knight emphasised the importance of coexisting with competitors in both formal and informal sectors.
"The safety and the security, the reliability of our technology, I think, is unmatched. So, I am very confident that this is something that will benefit users. We have multi-channel access to our wallet," he said.
The company offers multi-channel access to its wallet, allowing users to access services via USSD or WhatsApp, regardless of smartphone ownership.
"This flexibility is a significant differentiator, and our network is uniquely positioned to capitalise on this advantage," Tait-Knight said.
