Zimbabwe’s largest telecommunications and technology company, Econet Wireless, has achieved an Africa first by opening two free remittance corridors into the country, completely eliminating the cost to both sender and receiver.

Econet has partnered with its sister company, Sasai Money Transfer, to enable individuals and companies in the United Kingdom and South Africa to send money into Zimbabwe free of charge, starting today (May 2, 2024). The receiver also cashes out of their EcoCash wallet for free.

International remittances attract a charge of up to 15% for the sender, while the receiver is charged 3% when cashing-out.

Econet Wireless Zimbabwe chief executive, Douglas Mboweni explained that the latest decision is aimed at helping Zimbabweans to weather the acute challenges caused by the drought.

The country recently declared a national disaster over a drought caused by the climate event known as El Niño, which has left more than 2.7 million people in need of food aid.

“We hope Zimbabweans in the Diaspora will use the savings to send more money home to their families,” Mboweni said.

“The majority of remittances to Zimbabwe are conducted through these two main corridors (the UK and South Africa). We don’t have to pay any third parties on those corridors, because we rely on a sister company in the group, which agreed to help out,” he said.

He said he hopes the move by Econet will encourage other companies facilitating remittances into Zimbabwe to reduce their fees, noting that it was time that remittances into Africa in general were brought down “to assist with the continent’s economic development agenda”.

Mboweni added that the initiative was in support of government efforts to increase diaspora remittances coming into the country through formal channels.

Econet’s extensive EcoCash agent network ensures that even people in remote rural areas have access to low-cost financial services, reducing the need for recipients to travel long distances to collect cash.

Econet said Remittance transfers will be facilitated through the EcoCash US dollar wallet, which is accessible by dialling *153# on an EcoCash registered Econet line.

Senders in the UK and South Africa can access Sasai Money Transfer by downloading the Sasai Money Transfer App on the Google Play Store and on the App Store.

Source: News Day

Nyambira Chivasa Correspondent

Zimbabwe has taken a bold step forward with the introduction of its new gold-backed currency, the Zimbabwe Gold (ZiG). This move, underpinned by significant local, regional and international advice, including from the International Monetary Fund, has sparked a wave of optimism among both consumers and businesses about the country’s economic prospects.

Traditionally, the introduction of a new currency in Zimbabwe has been fraught with significant challenges, often resulting in considerable confusion within the business sector, marked by shortages of basic commodities, and economic standstills that paralyse daily life.

These transitions have historically sparked widespread uncertainty and speculation, which in turn has disrupted market stability and consumer confidence. The mere announcement of a new currency could lead to pre-emptive price hikes, hoarding of goods, and even a temporary collapse in normal trading activities as businesses and consumers alike struggle to adjust to the new financial landscape.

However, the recent launch of ZiG marked a departure from the past with major retail outlets swiftly adjusting their pricing to align with the ZiG, ensuring business continuity and fostering a sense of normalcy. This smooth transition has allowed people to continue their shopping routines without the panic and uncertainty that typically accompany such significant economic changes.

The proactive measures taken by the Government and the Reserve Bank of Zimbabwe to stabilise the ZiG and promote its acceptance across the economic spectrum have played a crucial role in maintaining market stability.

The result is a consumer environment where confidence in the new currency is growing, helping to stabilise prices and ensuring that the daily economic activities continue unhindered by the fear of currency volatility.

Responding to a widespread public outcry over high bank charges, the Reserve Bank of Zimbabwe has taken decisive action to implement policies aimed at reducing fees for low-cost accounts. This significant policy shift is designed to alleviate the financial burden on ordinary Zimbabweans, ensuring that their account balances are not eroded by excessive fees. By making banking more accessible and affordable, these measures help preserve the hard-earned money of everyday citizens, fostering greater financial inclusion across the country.

Moreover, these new banking policies do more than just preserve account balances; they actively promote a culture of saving among the population. Encouraging saving is crucial for economic stability and personal financial security, particularly in a country facing economic challenges.

With reduced bank fees, more individuals are incentivised to save their money in banks, which not only provides them with a safety net, but also contributes to the overall pool of national savings. This increase in deposits can then be leveraged by banks to provide more loans to businesses and individuals, stimulating economic activity and growth. Through these thoughtful adjustments, the government demonstrates its commitment to creating a banking environment that supports the welfare and economic advancement of its citizens.

President Emmerson Mnangagwa’s administration has shown unwavering support for the implementation and stabilisation of the local currency, viewing it as a cornerstone for Zimbabwe’s socio-economic development.

President Mnangagwa has consistently argued that true economic independence and sovereignty are tightly bound to the strength and stability of a nation’s currency. By promoting the use of the ZiG and emphasising its crucial role in the economy, the Government aims to detach from dependency on foreign currencies, which have historically brought about a slew of economic challenges and vulnerabilities.

This steadfast approach underlines a strategic move towards bolstering national confidence and ensuring that economic policies are firmly rooted in enhancing the local currency’s value and acceptance both domestically and internationally.

These efforts by President Mnangagwa’s administration have been met with positive outcomes, as evidenced by the notable growth in the country’s Gross Domestic Product (GDP). This increase is a testament to the improving health of Zimbabwe’s economy and signals to both local and foreign investors that the country is crafting an environment conducive to investment and growth.

The rise in GDP not only reflects the initial successes of adopting a local currency but also highlights the potential for sustained economic improvement. By fostering a stable and predictable economic environment through a strong national currency, Zimbabwe is effectively inviting investment and encouraging local enterprises, setting a solid foundation for future economic expansion and increased national prosperity.

Despite these positive strides, some critics remain sceptical about the Government’s capacity to stimulate the economy solely based on the resources backing the new currency. However, recent developments suggest that these concerns may be overly cautious. The Government’s crackdown on illegal money changers and the assurance of adequate foreign currency reserves by the central bank are bolstering confidence in Zimbabwe’s financial markets.

The ongoing construction of the Dinson Iron and Steel Company (Disco) steel plant, a monumental project set to be one of Africa’s largest steel producers, is a prime example of Zimbabwe’s forward momentum. This initiative, alongside others like the Champion Foods milling plant and the revitalisation of the Kamativi mining projects, illustrates a clear trajectory towards substantial economic growth and job creation.

These projects are not just about industrial growth; they reflect a broader commitment to stabilising and strengthening the Zimbabwean economy through strategic resource management and infrastructure development. The structured approach to managing the ZiG’s value, particularly its linkage to gold, a universally valued stable asset, enhances its credibility and long-term viability.

As Zimbabwe continues to navigate its path towards Vision 2030, the role of the ZiG becomes increasingly central. The structured management of the money supply and the strategic reserve of precious minerals and foreign currency reserves underpin this vision. The success of this currency, therefore, is not just about economic policy but about fostering a sense of national pride and sovereignty.

In conclusion, while the journey ahead is complex and fraught with challenges, the foundational steps taken with the ZiG currency suggest a promising horizon. For Zimbabwe, a stable and respected local currency is not just an economic tool but a symbol of resilience and independence.

The ongoing efforts to support and strengthen the ZiG will likely play a critical role in shaping the country’s economic future, making it an endeavour worthy of both national and international attention.