THE Reserve Bank of Zimbabwe (RBZ) has introduced digital banking and other initiatives aimed at integrating informal sector players into the formal banking system, deputy governor Innocent Matshe said this week.
This move comes as the majority of Zimbabwe’s small-to-medium enterprises (SMEs), particularly those in rural areas, remain unbanked.
Many startups have also avoided formal banking channels due to ongoing currency volatility, which has destabilised the local unit.
In 2019, the RBZ issued a directive requiring employees earning in US dollars to formally request withdrawals. Additionally, banks were instructed to convert all unutilised foreign currency balances not withdrawn within 30 days into local currency at the prevailing interbank rate.
Matshe told the Zimbabwe Independent that through the National Financial Inclusion Strategy, the central bank was working to make financial services accessible to the informal sector, which remains largely unbanked.
“The Reserve Bank of Zimbabwe is aware of the growth in informalisation in the economy and has made significant efforts to ensure that small and medium businesses are banked,” he said.
“Through the National Financial Inclusion Strategy, the Reserve Bank has ensured that financial products are accessible to all, through the high digital transactions spectrum that includes mobile banking and internet banking, which can be utilised by small businesses.”
Matshe highlighted that the removal of bank charges on accounts with balances below US$100 would encourage greater use of legal banking channels.
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“Furthermore, to promote the use of normal banking channels for all domestic trading transactions, the Reserve Bank is collaborating with the Bankers Association of Zimbabwe, local authorities, and other licensing entities to ensure that all applicants for trading licences (individuals or corporates) have a bank account and a functional POS (point of sale) machine at the point of licensing and/or renewal,” he said.
“In addition, to encourage banking, the Reserve Bank has implemented a policy where banks are compelled to exempt bank charges for all accounts that maintain a balance of US$100 or less, or its equivalent in ZiG.
“Point of sale transactions for amounts less than US$5 or its equivalent in ZiG are also exempted from transaction charges, for both banking institutions and Payment System Providers, to encourage banking.”
Addressing concerns about cash hoarding by currency speculators, which has contributed to instability in the ZiG currency, Matshe said the RBZ was promoting “favourable bank and transaction charges”, among other measures.
“To stop the hoarding of cash in the economy would require both market-driven, administrative, and regulatory approaches. On the market-driven approach, the Reserve Bank is continuously putting in place measures that are instilling trust and confidence in the banking sector,” he further stated.
“These measures include ensuring price and exchange rate stability, promoting favourable bank and transaction charges, and improving access to credit.”
Matshe urged companies to bank excess cash daily to avoid losing money to criminals.
