EcoCash, the operators of Zimbabwe’s largest mobile payments service of the same name has announced that they are increasing their tariffs effective the 21st of September 2021.

EcoCash effected higher changes to their pricing for higher transaction amounts. The biggest jumps are a change of 56% from the current tariff. If you then factor in the 2% transaction tax which starts kicking in for transactions above $300, these costs of transactions really add up.

The tables below show the comparison between the current tariffs and the new ones coming in Septemeber:

Tariffs for paying merchants

Tariffs for sending money to other EcoCash users

Tariffs for bill payments

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Yesterday, EcoCash celebrated its 10th anniversary. Only 10? It feels like we’ve had the mobile money solution for longer than that. That’s because of just how much impact the service has had in our lives.

Granted, the last few years have been tough for the mobile money services provider. But there is no denying we cannot talk about the payment industry in Zimbabwe without talking about the service.

As we celebrate with Cassava and Econet, let us look back on a very eventful first decade in business for EcoCash.

2011: Launch of EcoCash

I was a broke young adult then when I heard about EcoCash. I had no idea what mobile money meant but they were promising a dollar for every signee, so obviously I was in.

I wasn’t alone, many signed up for the free dollar. As we understood the service better, even more signed up. So quick was the uptake that in only 14 months, EcoCash had reached 2 million subscribers.

The mobile money puzzle needed three main pieces – subscribers, agents and merchants.

Therefore, agents and merchants were also incentivized to sign up. Econet paid out 80% of revenue in agent commissions and agents signed up in droves. With that move, domestic remittance was conquered.

Merchants were promised no service charges and with nothing to lose, they signed up. With that, EcoCash users were able to pay for almost everything they needed using the mobile money service.

Strategic brilliance was observed with the acquisition of TN Bank just six months after launch.

Realising that they needed to partner a deposit-holding bank and yet their service would be competition to the same bank, an acquisition was planned. That would safeguard against bank retaliation to EcoCash success and my goodness, was that prophetic.

All in all, that was quite the launch. 10/10. Flawless. Users loved the service, agents and merchants were happy and the regulators were on board with it all.

2013-2018: The growth, maturity and dominance of EcoCash

• Bill payments were introduced, from DStv to electricity. This being Zimbabwe, it took a little fight to get ZETDC payments on EcoCash. Initially, the parastatal exclusively accepted payments using fellow parastatal NetOne’s mobile money solution. EcoCash users were not amused and they pressured ZETDC into accepting EcoCash.

• Payroll and bulk payments were introduced to make EcoCash usable as a business solution.
• Zinara e-toll payments were introduced for motorists.
• Duties and taxes – this was the moment. When citizens can pay their taxes and duties using a currency or platform, at that moment the currency or platform becomes officially accepted. EcoCash was a bonafide payment method at this point.

At that point, one could pay for almost any product or service in Zimbabwe using EcoCash. That was in addition to being able to send even micro amounts of money to almost anyone, anywhere in the country.

International aspirations

Diasporans were not forgotten, the millions of Zimbabweans living outside the country. For them International Remittances were introduced. An example being the EcoCash Home Wallet for Zimbos in the UK. This allowed them to pay for services in Zimbabwe for family.

For locally based Zimbos, a partnership with Mastercard brought the global market to their doorstep. A virtual prefunded debit card allowed purchasing from anywhere Mastercard is accepted.

Retention

With dominance established, attention moved to retention and monetisation of the huge subscriber base. Several features were introduced to make the service even more popular.

• EcoCash loans – were wildly popular and saw 500,000 new account openings in just 2 weeks. In the process, Steward bank (TN) became the largest bank by number of accounts.

• EcoCash Save and Savings Clubs – essentially made EcoCash a savings account. One with no monthly service fees at that.

• Swipe into EcoCash – some banks were still resisting integration with EcoCash so this was the solution for users to be able to get their money out of their bank accounts and into EcoCash.

All these moves cemented EcoCash’s dominant position in the mobile money industry. The next step naturally was to unshackle EcoCash from Econet.

EcoCash beyond Econet

The Econet Global group was restructured and a new Cassava Fintech was introduced. EcoCash would fall under this parent, which would be listed separately on the Zimbabwe Stock Exchange.

Having integrated with all commercial banks around this time, the last hurdle was other mobile network operators (MNOs) – NetOne and Telecel.

Swiftly, the doors were opened. Subscribers to the rival MNOs were welcomed into the fold. EcoCash had essentially become a bank.

All one needed to open this bank account was an ID, proof of residence and a phone number, any phone number.

Cash crisis in the country

As if EcoCash needed help in it’s rapid ascension, a cash crisis broke out in the country which improved the service’s fortunes exponentially. Zimbabweans had no choice but to use electronic methods for payment, hard cash was simply not available.

Banks could have capitalized on this but the KYC requirements for commercial banks remains stricter than for mobile money operators.

Therefore, mobile money services benefitted most from citizens having to exclusively use electronic forms of payment.

In 2017-18, they consistently had:

• Over 80% of ALL financial transactions by volume

• Over 95% of all mobile money transactions

• Over 95% of mobile money subscribers

• Over 90% of mobile money agents

These are monopoly level figures and the government started to worry a bit. After all, EcoCash was not a government run platform and yet it had that much power.

Government intervention

In hindsight, they should not have allowed their dominant position to get that far. That was the beginning of their regulatory troubles.

Then ICT minister was on record saying EcoCash’s dominance could be disastrous if not curtailed. So, curtailing had to commence.

It may be a commercial success but it’s a disaster if we look at it from a public sector point of view. What happens if that system fails at a critical moment? That means we have disrupted the entire nation because we have relied on one supplier.

Then ICT Minister, Supa Mandiwanzira

It was a valid point. As the months rolled by, the government’s attitude towards EcoCash continued to sour.

We almost have a monopoly so they think they can do whatever they want

Then ICT Minister Supa Mandiwanzira

When a sitting minister is saying that about your company, just know you are in for a bumpy ride. EcoCash was in the cross hairs then.

2019-present: EcoCash stagnates

It was almost poetic that the cash crisis which led to EcoCash dominance was the same that turned around to bite them where it hurts.

By the end of 2018, their agents were abusing the system and charging a premium to users cashing out their money.

The agents were responding to the prevailing economic conditions caused by the government’s monetary policies. However, it was EcoCash which suffered the tarnished reputation.

Perfect storm

When it rains, it pours. For EcoCash it poured cats, dogs and cows after 2019.

Perhaps the rapid growth had been a tad bit too rapid because they started experiencing technical difficulties just a little too frequently. This was unacceptable for a service many relied on. Turns out the ICT minister had been right.

With rogue agents ‘selling cash’ and system stability compromised, the perfect storm had brewed for EcoCash and the regulators swooped in to deal with the situation.

Cashing in and out was banned, one of their core services. The premium for cash on the black market soared.

Cash-in and out transactions were reinstated but at a lower maximum amount. That was a win for EcoCash. Truth is, they don’t like cash outs because that’s money leaving the EcoCash platform. So, the limited maximums helped lock funds in EcoCash.

2020 came, Covid rocked the nation and the EcoCash story continued its windings:

• Government decides to distribute Covid relief funds exclusively through OneMoney. EcoCash scraps all charges for such distributions to lure in those funds.

• Mobile money agents (mostly EcoCash) have their accounts frozen under suspicion they were involved in illicit forex deals.

• EcoCash realizes the damage this could do and takes the regulators to court over the frozen accounts. All the while exaggerating the impact of the freeze.

• At this point the RBZ and EcoCash have battle lines drawn.

• The regulators throw big punches, charging EcoCash and Cassava CEOs with money laundering.

• The government through, the Information ministry announces that all mobile money transactions are banned.

• EcoCash responds that it is regulated by the RBZ and so continues operations.

• The government recants, says ban applies to agents and merchants only.

Although the public could still transact, this wasn’t a win for EcoCash for two main reasons:

1. Merchants started refusing EcoCash transfers. Since they could no longer move funds in EcoCash freely, they started accepting everything but EcoCash.

2. The ban diminished EcoCash’s utility to the transacting public. The usecases for EcoCash dwindled because of the merchants’ actions.

EcoCash was truly in a pickle then.

• No cash in cash out transactions meant the only way for money to enter the EcoCash platform was from a bank account. All of a sudden, they needed people to have bank accounts and so they promoted the banks they are integrated with.

• Problem was, let’s say a user heeded the call and opened a bank account. Why would he then transfer the money into EcoCash when more and more merchants were refusing that payment method but accepting bank card payments?

The government wasn’t done. EcoCash was forced to integrate with Zimswitch, it’s biggest competitor. The move was meant to reduce any barriers to leaving EcoCash that remained and to neutralize the power of its agent and merchant network.

There are other significant entries in this journal but that is where EcoCash is today. Still very much on the government’s radar.

This regulatory pressure has severely impacted EcoCash. They detailed the government actions that had hampered their progress as:

21st April 2020 – Reduction in daily, monthly and transactional limits,

4th May 2020 – Suspension of Agents with transactions above ZW$100,000 and requirement for their re-registration,

4th June 2020 – Suspension of Agent to Agent transactions,

26th June 2020 – Directive to integrate to Zimswitch, in line with SI 80, by 30 September 2020,

27th June 2020 – Suspension of some Ecocash User Categories and Functions,

25th August 2020 – Revision of mobile money limits and permissible transactions,

25th August 2020 – Ban of use of multiple wallets by individuals effective 8 September 2020.

Conclusion

Not much has changed since then. And so ten years in, the star does not shine as bright as it should have been shining.

Although they had to deal with an erratic and often irrational and vengeful government, EcoCash has mostly itself to blame for it’s clipped wings.

That being said, the service is by no means done for. It has been a topsy-turvy decade but all things considered, EcoCash has been wildly successful.

Looking forward to see what the next 10 years will look like.

The post EcoCash turns 10, let us look back on its dramatic first decade appeared first on Techzim.

Eight companies appeared in court yesterday, the 27th, for illegally dealing in foreign currency. The companies allegedly bought foreign currency on the streets using EcoCash agents, illegally. 

The unlucky eight are:

• Titanium Capital (Pvt) Ltd
• Dream High Investments (Pvt) Ltd
• Access Finance (Pvt) Ltd
• Tererati (Pvt) Ltd
• Vision Credit Score (Pvt) Ltd
• Capital Profit Financial Services
• Raymond Mudonhi Investment (Pvt) Ltd
• Justice Mahuni, Kudzai Mudonhi, and Juso Global Limited

Each of these companies is alleged to have used EcoCash bulk payer lines to trade in hundreds of millions of ZWD (hundreds of thousands in USD). Their accounts show that they received millions from various individuals and companies which they then transferred to agents using the EcoCash bulk payer lines. The agents are said to have purchased forex from the streets on their behalf.

This episode is the one that ultimately put the target on EcoCash’s back. The mobile money solution was in the crosshairs even before this activity. The regulators resolved to break EcoCash after this. 

To be fair to the government, it feels like EcoCash should have noticed the unusually high amounts that were being moved on the platform. Especially how cash in/ cash out transactions seemed to be wildly popular when on the ground, everyone knew no cash was exchanging hands in those transactions. 

Some began wondering if EcoCash themselves might have been involved in the illegal activity. There was no substantial evidence for this but they left themselves in that position by not clamping down on the activity. Even the regulators should have investigated how cash in/ cash out transitions were still popular in a more or less cashless economy.

The root cause of the madness 

What these companies allegedly did is illegal but truth be told, almost every other company was and is up to similar mischief. This behaviour and reckless disregard for the law does not stem from teenage-like rebellion but rather from astute business instincts. It is a matter of life and death for their businesses. Of course, once survival is secured, super profits are pursued as human nature dictates.

Earlier this year, supermarkets were in the hot seat for pricing their goods using parallel market rates instead of the RBZ auction rate. As consumers we were incensed, as rational human beings we understood why they had to do that. They were and are not getting all their foreign currency at the same official rate. As my colleague put it:

That is because the so-called official rate is an average mean. Each business bids in the RBZ Auction and gets foreign currency at a different rate.

To make matters worse, most businesses have to supplement the auction acquired forex with street-sourced forex for it to meet their actual needs. When we consider that the auction system sometimes take over 10 weeks to reach process payments, is it any wonder they turn to to the black market.

The government, through its various arms, has continuously warned companies against using arbitrage for profiteering. It was only a few months ago that the RBZ named and shamed abusers of the auction system. This month the RBZ governor was urging companies to stop exploiting the gap between the black market rate and official currency prices. I found that rather silly.

It’s like locking dogs in a butchery and screaming, ‘please don’t eat the meat.’ Dogs will be dogs, boys will be boys and human nature will prevail. Rather than prosecuting the dogs for eating the pork chops, why not ensure they don’t end up locked up in the butchery. Why are companies engaging in these illegal activities?

Low production in the economy

Zimbabwe was once the breadbasket of Africa. The tides changed and the empty breadbasket ended up importing onions from South Africa and maize from Zambia. That paints the picture of how little we produce now. 

The government is responsible for most of the policies that got us to this position. Politicking has always been the undoing of our economy. The land reform programme saw some unmotivated party loyalists get farms where, unsurprisingly, output tanked. The fiscal and monetary policies have also made business hard to conduct in the country. The inevitable result was reduced production.

The problem is low production = low exports. That remains the biggest factor in our foreign currency shortage issues. There is low demand for our currency because the other countries are buying less from us. We get less foreign currency because we are selling less than we are buying. This is simple to understand but hard to fix.  

Depreciating local currency and inflation

It was only a few years ago when the ZWD was officially trading at 1:1 with the USD. Now the official rate is around 86:1 with the parallel market rate fast approaching 200:1. That means it is unwise to hold any amount of money in ZWD, let alone the large amounts that businesses accumulate. 

The instability of the local currency means the prudent thing to do is convert your ZWD into USD at the earliest possible time. Otherwise you might find that you can’t restock owing to the loss in value of your takings. Individuals are engaging in this activity as well. The only problem is that there is insufficient foreign currency through the official channels for everyone to do this. Hence the parallel market activity.

The exchange rate gap

There are a few certainties in this life; death, taxes and the Zim government pegging an ailing currency at a fixed rate against the USD. It has never worked and it never will in the long run. 

What it does is create arbitrage opportunities for those able to access both markets – the official market where the ZWD is pegged arbitrarily favourably against the greenback and the parallel market exclusively influenced by market forces. The opportunity to buy at $86 and sell at $170 is just too difficult to pass up. 

The auction rate is somewhere between a pure market-force driven rate and a prescribed one. It has elements of market forces but is mostly prescribed to remain artificially low.

The motivation for the ‘criminals’ therefore comes from the tough economic conditions, the inflation and depreciating local currency. The exchange rate gap then stares them in the face and they are ‘forced’ to take advantage of the arbitrage opportunity.

The unintended consequence

The problem with immoral/inhumane/ill-advised laws is that people will break them. As they continually break them, respect for the rule of law diminishes. Most Zimbabweans continually break the law that prohibits them from buying foreign currency on the streets. 

That becomes like the gateway crime and the longer we engage in it, the easier it is for us to break other laws. 

So while it is deplorable behaviour that these companies engaged in, it is at the same time completely relatable and understandable. This means, ultimately, the government should shoulder most of the blame.

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A scapegoat is a goat upon whose head the sins of the people are placed. The goat itself is sinless and yet it has to bear the sins of the people. The Zimbabwean government is looking for a goat to place the local currency collapse sin on. 

Every day a potential goat is identified and is paraded for the nation to see and when no one believes the goat can adequately carry our sins, a new goat is sought. When an adequate goat can’t be found, we go back to mobile money. Or more correctly EcoCash.

We are in mid-October 2021 and the Minister of Finance, Dr Ncube has promised to tighten regulations on mobile money . As reported by Business Times he says,

“There will be innovations that you will see especially on the mobile money  platforms which have tended to run ahead of regulation. We can catch up with them and institute effective regulation.

It’s about tightening the regulation, making sure that it complements the other policy measures so that we stabilise our currency and keep it stable.”

Finance Minister, Dr Mthuli Ncube

This is because mobile money platforms are still somehow chiefly responsible for the collapse of the Zim Dollar. Seems the good doctor may need reminding.

We already crippled mobile money platforms 

I think very few would argue that mobile money platforms were not used in the exchange of currencies on the parallel market. We all know ‘millionaire money changers’ who used EcoCash to build their empires. But that was in the first half of 2020 and earlier.

The government clamped down on mobile money platforms because of “Rampant abuse of agent, super-agent and bulk payment wallets for purposes of trading on the foreign exchange parallel market.” The following actions were taken to remedy that:

1. Transaction limits – after discovering the tomfoolery, the government proceeded to place a $5000 daily limit which was restrictive even for ordinary individuals. It was only at the end of August this year that the daily limit was increased to $20000. Hardly enough to move the needle on the black market.

2. Agent, merchant and bulk payer lines were rendered useless – the following transactions were banned: 

• agent to agent
• bulk payer to bulk payer;
• agent to bulk payer
• bulk payer to agent
• merchant to agent 

3. Agent lines were then permanently banned – the agent lines that were being used to mop up forex on the streets were shut down. The government said they no longer served any meaningful purpose.

4. Bulk payer lines were limited to disbursing low-value payments such as for humanitarian aid and also for payments related to agricultural services.

5. Individuals were limited to one mobile money wallet.

6. ALL EcoCash balances can only be liquidated/ converted to cash by first transferring them to a bank account. Be they the large balances merchants hold or the small ones individuals have and everything in between.

With all these moves, the government succeeded in crippling EcoCash and its competitors. It is virtually impossible to move the kinds of funds that could destabilise the local currency through EcoCash. 

What about the EcoCash agents in court? 

Indeed there are 8 firms being prosecuted for illegally dealing in foreign currency using EcoCash agent lines. However, those crimes were committed back in the first half of 2020 and earlier. They won’t help us explain the recent drop in Zim Dollar value.

Pressure on the government

There are upcoming elections and the free-falling local currency and rising inflation are de-campaigning for the ruling party. I would never accuse Dr Ncube of mere politicking but the politics of the matter say he has to be under pressure to rein in the chaos. It is under this pressure that he has lifted his baton to strike an already wounded/ almost powerless EcoCash.

We shall see what the innovations that will further tighten the regulations on EcoCash will be. Right now it looks like all the bolts are fastened tightly but I guess you can always risk damaging the threads to get a more secure fit. That said, it does feel like they are grasping at straws. After all, what is still there to tighten?

The real culprit 

The question is: if not EcoCash, then who? How are the trades being executed on the black market? We know that cash in circulation is tightly controlled through withdrawal limits and cannot be responsible. So this means even when EcoCash agents were the culprits, in most USD to RTGS$ exchanges on the streets, no ZWD cash ever changed hands.

This means most deals were already done through RTGS transfers because even back then, RTGS transfers accounted for around 75% of transaction values. So EcoCash was a scapegoat even back in 2020. Not a sinless goat but one burdened with more sins than it could possibly be responsible for.

It was always a case of scapegoating EcoCash but now that they maimed the scapegoat, we are forced to face the reality that RTGS transfers have always been the culprit. Something the public already knew.

What can be done?

Obviously we can’t issue an order to freeze all bank accounts with balances over $100,000 like we stupidly did with EcoCash accounts. All restrictions we could place on the movement of funds will adversely affect business. Something we can’t do because RTGS transfers are the ONLY way businesses are able to meet their local obligations.

It is after considering this that, yet again, we are forced to realise that we are always trying to fix the symptoms and not the root cause. People are not converting their Zim Dollars to USD just because they can transfer the funds to black market forex dealers. That’s silly. 

Instead, low trust in the depreciating local currency is the real reason they do it. We could keep trying to make it hard for them to be able to transfer their RTGS$ to forex dealers but guess what, that doesn’t fix the real issue and so people will find other ways. It’s not stubbornness, or anarchism, or nefarious sabotage but just pragmatism on the part of the majority.

So we could clamp down on regular individuals swiping for others in order to get USD cash. Still, that doesn’t fix our problem. It only closes another door for the millions of Zimbos earning Zim Dollars to convert it to USD. Lest we forget, the civil servant earning RTGS$ has to pay rentals in USD. You’ll hear the argument that they should queue up at a bureau de change every week. If only landlords were that patient.

Who has the most RTGS$?

Zimbabwean proverb: He who holds the most Zim Dollars has the most to lose.

So it stands to reason that those with the most to lose will do almost anything to protect their belongings. We have seen some flock to the stock exchanges, those who qualify to participate in the forex auction get the most they can there and the rest are probably going to the parallel market to convert to USD.

In the 2021 national budget the government revealed that capital expenditure is expected to reach about ZWL$55 billion. It is such expenditure which is chiefly responsible for the expanding money supply that we are now trying to tighten. 

If the businesses that receive those contracts were to convert that money at the auction rate, the RBZ would have to cough up over US$630 million. Therefore not all those who receive a piece of that $55 billion will qualify to participate in the forex auction. Even those who qualify won’t get all their forex needs from the auction. What are they doing with those huge RTGS$ balances?

This is not to single out businesses contracted by the government for capital projects. Rather this was to illustrate that it is some businesses with huge RTGS$ balances that are participating the most on the parallel forex market.

The lady swiping for someone to get their US$10 cash is not the reason demand for US$ shot up dramatically. The EcoCash agent’s activity similarly has little impact on the parallel market.

So let’s stop this talk about EcoCash being chiefly to blame for Zimbabwe’s ills. Let’s find another scapegoat, or better yet call out the the real sinner.

The post No Dr Mthuli, we can’t keep blaming EcoCash and mobile money for depreciating dollar appeared first on Techzim.

Zimbabwe’s smallest mobile network operator (MNO) Telecel has announced that customers will now be getting a 15% discount if they buy bundles through its mobile money arm Telecash.

Enjoy a 15% discount everytime you get data bundles using Telecash! Hurry up and juice-up today. T&C's apply.#megabundlespromo#staysafe#tellsomeone pic.twitter.com/SHoYAPrWlw

— Telecel Zimbabwe (@Telecel_Zim) October 21, 2021

“Enjoy a 15% discount everytime you get data bundles using Telecash! Hurry up and juice-up today. T&C’s apply.”

This is straight-up copy and paste what NetOne has been doing for some time with its 20% that became 10% airtime discount bought from OneMoney but for data bundles. Now this isn’t a knock on Telecel, at this point, it has to try something because from the end of December 2020 to March 2021 Telecel lost 20% of its subscribers approximately 142,990. For over a hundred thousand people to decide to jump ship in the space of about three months suggests there are some serious problems.

Problems that I don’t think will be solved by giving out discounts through a mobile money service that lost 72.8% of its users in Q4, 2020 when POTRAZ last reported mobile money figures.

To make matters worse Telecel has the lowest market share for all mobile internet infrastructure:

• 2G base stations – 13.4%
• 3G base stations – 14.8%
• LTE base stations – 1.5%

The cynic in me is screaming “who is this promotion supposed to win over exactly?!“. Again, I get that Telecel has to get some traction from somewhere, but what good is a bundle discount if Telecel is at the bottom of the barrel in all respects.

The question now is “what can Telecel do?” and luckily my colleague Garikai Dzoma wrote a prescription of sorts which you can find in the link below:

Cell C is shutting down, perhaps Telecel should be taking notes

The post Telecel’s 15% data bundle discount promotion: the stats say this won’t work appeared first on Techzim.

In Liam Neeson’s voice, “whoever you are, wherever you are, if you’re participating in the foreign currency parallel market, we will find out how you are doing it and we will kill it, the loophole you’re exploiting that is,” says the Zimbabwean government. Seems they are serious too. Physical airtime recharge cards will soon be a thing of the past. 

By now, we have all had time to reflect on the directive from the Financial Intelligence Unit that mobile network operators phase out recharge cards. Given because ‘vendors have been abusing physical recharge for money laundering.’ Let’s talk about it.

Is the basis for the recharge card ban true?

Yes. Indeed airtime traders are selling airtime at discounted foreign currency prices so as to encourage customers to pay using USD. Then some are also discouraging the use of ZWD$ by putting a premium on those. They are selling a ZWD$100 airtime voucher for more than the value of the airtime. All so that they can convert those ZWD to USD on the parallel market where there is a premium on the USD.

The impact of this activity in the economy?

We could argue all day about whether the impact of these traders’ activity is huge enough to warrant the ban. However, the question is can and should the govt turn a blind eye to this activity? By the letter of the law, it is illegal. 

There are bigger fish out there whose activities on the parallel market are ignored and so it’s hard to applaud the govt for this.

On the other hand, we realise that US$73 million is sufficient to have a significant effect on liquidity in the economy. So, knowing that airtime business is big business, the impact of these traders’ activity may not be as small as it initially looks.

Apparently the following is what put the target on their backs:

“The bulk airtime traders have not been depositing the significant foreign currency proceeds so generated into the banking system.”

Financial Intelligence Unit

So it appears that the govt was willing to let them trade on the parallel market as long as they banked their proceeds in Nostro accounts. Would any sane person do that if they could help it? No. Therein lies the real problem that the govt is yet to fix.

Why are the airtime traders doing this?

To preserve the value of their earnings by converting their earnings/savings into a currency that holds on to its value a little better. Then, to take advantage of the arbitrage opportunity. There is money to be made as there always is when there are price discrepancies in different markets. 

• Buy airtime in bulk using RTGS$ then 
• Sell the airtime for USD (or at a premium in ZWD$), then 
• Convert the USD to RTGS$ on the parallel market where they can get a premium for their USD
• Buy even more airtime in bulk
• Rinse and repeat

How is the government plugging the loophole?

Just straight out phasing out the physical recharge cards. Even the vouchers you can buy in places like supermarkets at till points will have limits placed on them to plug that loophole before it’s even exploited. Apparently individuals do not need more than $10,000 worth of airtime for personal use. That will be the limit per one transaction. 

Can a trader spend the whole day moving from till point to till point and from supermarket to supermarket to get around the above? Yes, but that is inconvenient and if it is observed that that’s what they are doing, that is a loophole that can easily be plugged.

The govt’s reasoning: No cards, no jobs, no illegal forex trades.

How will customers purchase their airtime now? 

Mostly electronically. So, the govt says cashing into mobile money wallets will be allowed again so people can do that. 

The reason physical recharge cards are still a thing is that the informal market is mostly a cash based one. Most vendors and other traders deal exclusively in cash, USD cash for many, and that money never actually enters the banking system. 

Meaning most never have any money in bank accounts or mobile money wallets. This is why airtime traders were discounting forex prices of their physical recharge cards, trying to get that sweet greenback.

Will this affect airtime sales for Econet, NetOne and Telecel?

Probably, for a while at least because these measures introduce friction for airtime buyers holding cash. However, the sting will be somewhat muted because of the gradual phasing out of the recharge cards. As physical cards become scarcer and scarcer, customers will get used to the new ways.

However, the proposed methods will lead to a lot of inconvenience for cash laden customers. They will have fewer places they can buy airtime. Instead of just a quick 5 second transaction with the many airtime vendors, they will have to queue up in one of the designated outlets. 

Unless paying cash to get electronic vouchers on the streets works out, airtime needed for just socialising may not be worth the hustle after long days, sometimes. After a day of low sales and harassment by municipal police the last thing one would want is to queue up in a supermarket just so they can greet their fourth cousin twice removed or say ‘sup’ to their Grade 2 classmate.

What about the rural customer? How close will be the nearest outlet where they can get the $10,000 physical voucher? Nolonger will they be able to rely on the guys who would go to the growth point and bring back physical vouchers. They will have to have money in a bank account or mobile money wallet and buy the airtime themselves. It will definitely put off some.

Reduced costs for mobile network operators / less waste

If everyone were to purchase their airtime electronically, the cost to produce those physical cards would fall to zero. If two individuals bought $10,000 worth of airtime each and one used *405# (shameless plug) to purchase electronically and the other got 20 little recharge cards worth $500 each. It is obviously cheaper to serve the *405# customer as there are no printing costs etc there. Same value of airtime bought, different costs to deliver that airtime.

The environment would also thank us. Reduced waste will be a welcome development. Truth be told, we Zimbabweans, especially Hararians, do not think twice about littering anymore. If I had a Zimdollar for every time I have seen a Zimbo chuck an empty fast food box or used recharge card out the window of a Honda Fit, I would have enough to buy a US$. Can you walk just two blocks in town without seeing a used recharge card on the ground? Impossible.

Is this a lifeline for mobile money?

If you are EcoCash or OneMoney, would you be celebrating that cash ins have been resurrected. Well, not quite. In this case Lazarus has come back from the dead as a bit of a zombie, not quite dead but not quite alive. 

The government killed the mobile money agent networks and is not resurrecting them. Cash ins will be done at designated outlets, far fewer than the tens of thousands of agent outlets there were. So, a customer will have to queue up at one of these designated outlets to cash in. Meaning queues will be a thing still.

The govt made it clear as well that, “cash-outs shall not be permissible.” So, mobile money platforms cannot celebrate this false second coming of essential mobile money features. Once your money is in the system, the govt does not want it to ever get out. 

The govt allowing cash ins and not cash outs, at a limited number of outlets at that, will not boost activity on mobile money platforms significantly. It’s by design, the govt will never allow mobile money platforms to flourish, ever again.

Lost jobs in a high unemployment economy

Some airtime traders will lose their income stream. Some will survive. After all, people will be forced to pay cash for ‘electronic vouchers’ where airtime traders purchase airtime for them. It is a slower process than what we had but could be quicker than having to queue up in a supermarket.

The airtime trader can of course discount the price for those paying using USD and charge a premium for those using ZWD. And we are back where we were. However I foresee the ability to purchase airtime for others being crippled to some degree. It remains a loophole because the government wants individuals to only purchase airtime for their personal use. 

There is no room for agents/resellers in the new republic. Mobile money agents? No. Airtime agents? Nope again. At this rate you we will all be queueing up at National Foods to get maize meal, reselling/retailing/agency being punishable by death by then. 

So ultimately, most airtime traders will have to find different income streams. In this economy where most earn much less than the poverty datum line, this loss of income will have dire consequences for some families.

A desperate government

First, mobile money agents are outlawed and cash transactions on those platforms are banned. Then, we phase out physical airtime recharge cards. Oh, we then realise, most of the people do not have bank accounts and so will need to deposit into mobile money wallets to purchase airtime. 

We bring back cash ins but not cash outs to allow that. But we can’t have the evil mobile money agents again, so cash ins will only be at a few select outlets. We can’t have those saboteurs tanking the local currency again. Or have the equally unpatriotic airtime traders resell airtime and so only a few select outlets will be able to sell physical airtime vouchers.

This all screams of desperation, a tragic game of whack-a-mole. The government reduced to a reactionary institution which rushes in to treat any symptom of a disfunctional economy while powerless to fix the real cause of the disease. 

At this point, as regards activity on the parallel market, it is a public secret that it is beneficiaries of large govt infrastructural project tenders who are responsible for moving the needle. Unfortunately, those are untouchable and so to appear to be doing something, every single infraction by a dispensable citizen will be punished to the full extent of the law. 

Will all this lead citizens to just accept the RTGS$. I don’t see how. All this comes from a lack of trust in the govt and their management of the local currency. This means moves like these only strengthen the resolve of people to dollarise. Bypass the formal system altogether.

Why even talk about all this on Techzim?

These sort of govt directives affect mobile network operators, mobile money service providers, the average person and everyone in between. The innovation we want to see in fintech or the investment in infrastructure we want to see are affected. So without this context we could harshly judge the players in this space.

The post Let us discuss the impact of the airtime recharge card phase out appeared first on Techzim.

As far as I know, I have never owned a Telecel line and seeing as y’all were upset that I was “bashing” the country’s smallest mobile network operator for its 15% Teleceash bundle discount, I’ve decided to become a Telecel subscriber. Getting the line was simple enough and it’s cheaper than getting an Econet line which costs ZWL$150 as opposed to Telecel which is at ZW$100, plus you get a free ZWL$50 juice card.

So while I was getting my line and mobile money registered, the attendant asked me if I’d like a Telecash Gold card. I have been collecting lite accounts like a hoarder over the last year, so who was I to say no to another card. In my defence though, the Telecash swipe charges are pretty reasonable and like with my OneMoney wallet, I can send money to EcoCash diehards at a cheaper rate than they can send money to me… One wonders why the whole interoperability thing was such a big deal because not much has changed but that’s a story for another day.

Magstripe cards in 2021?

Anyway, while I was filling in the form I finally got a look at the card and well… it was a magstripe (Magnetic Stripe). Everyone and their grandmother know the Reserve Bank of Zimbabwe has over the years “encouraged” banks to convert to EMV Chip cards because they are far safer than the easily cloned magstripe cards.

What Are EMV Cards And Why The RBZ Wants Banks To Migrate To These

The Reserve Bank of Zimbabwe in February 2019’s Monetary Policy Statement said the following about EMV Chip Card compliance

“Further to the cyber security guidance, market participants are required to migrate to Euro MasterCard and Visa (EMV) standards to ensure enhanced card security features to curb cyber related activities. Currently, over 80% of the card infrastructure in the country is now EMV compliant. Financial institutions should therefore ensure that all cards issued in the market are EMV compliant by 31 March 2019.“

2019 Monetary Policy Statement

To aid in the adoption of the safer EMV Chip cards (or Chip and Pin Cards) we have seen banks urge stragglers who still hadn’t made the switch. The last bank we know of to phase out magstripe cards was Steward Bank in March this year.

It’s not just Telecash, OneMoney is issuing them too

After getting my Telecash card I thought it would only be prudent to get one for OneMoney as well. And low and behold another magnetic stripe card. When I asked the attendant who served me why they haven’t made the switch to EMV chip cards, I was told that they had not arrived yet.

This little adventure of mine wouldn’t have been complete without a trip to EcoCash to see if they are still issuing mobile money debit cards. Well… to this end I was told that EcoCash had discontinued its debit cards and the only way you can access funds in your wallet via a card is through your bank account or if you don’t have one, you can open a Steward Bank account.

However, before EcoCash discontinued its debit cards they were issuing EMV chip cards

Being the glutton for punishment that I am, I went to Steward Bank to open a lite account just to make sure that it was EMV compliant and sure enough it was. The process, however, was no walk in the park, I really like that banks have started Digital KYC and onboarding because no one should be in a queue in this October heat.

Safety is the concern regardless of how many people use mobile money debit cards

There have been a litany of card cloning stories over the last half-decade or so. A lot of people have lost their money to people who can scan and reproduce magstripe cards.

Now, the argument is “with banks making it easier to open accounts who still uses mobile money as their primary financial service?” and fair enough however you’d be surprised to know that people are still queuing to open accounts at physical bank branches while many banks are allowing account opening via USSD or even on data free zero-rated apps.

By that logic and with how the news of these innovations has not travelled, it stands to reason that there are people who still depend quite heavily on mobile money. More so after the limits were addressed recently by the Reserve Bank of Zimbabwe.

Continuing with that train of the, why are Telecash and OneMoney in 2021 still issuing cards that, by the RBZ’s measure, should have been phased out?

The post Telecash & OneMoney are still issuing high-risk magstripe cards appeared first on Techzim.

Cassava Smartech Zimbabwe, trading as EcoCash Holdings Zimbabwe Limited, together with its long-term technology partner Comviva, has won two silver awards at this year’s Emerging Payments Awards.

Cassava Smartech and Comviva won the silver for the Green financial inclusion initiative by mobile money platform EcoCash in the “Best Direct Account to Account Solution” and “Most Innovative Mobile or Financial Service Payments Solution” category. The winners were announced at the Emerging Payments Awards Ceremony held recently in London.

Climate change and its adverse impacts are growing concerns throughout the world, including in Zimbabwe. EcoCash, the country’s largest mobile-money service, which is used by over 80% of the country’s adult population, recognises its pivotal role in financial inclusion. It also understands the importance of creating resilience to climate change among vulnerable people, the use of ‘clean’ energy sources and reducing waste for a better environment. The EcoCash team recognises that the ubiquity and power of EcoCash can be leveraged to fight adverse effects of climate change, create a better environment and support Green Financial Inclusion efforts.

EcoCash is driving ‘Green Financial Inclusion’ by launching innovative new features, services and initiatives such as enabling humanitarian organisations and NGOs to disburse financial aid digitally via EcoCash to people impacted by climate change disasters, like droughts and floods, thus helping them to sustain and overcome food insecurity. The mobile platform helped collect donations digitally for relief efforts during climate change-induced disasters, such as cyclone Idai, to help with the rescue, relief and rehabilitation for victims.

“At Cassava Smartech we are focused on serving where the need is greatest, and we are happy that our efforts and initiatives are being appreciated at global industry awards like Emerging Payments awards. Through EcoCash we are leveraging mobile technology to extend financial inclusion to all Zimbabweans and creating a cash-lite economy.”

Eddie Chibi, Cassava Smartech Zimbabwe Chief Executive Officer

Cassava Smartech is also providing weather-index crop insurance to farmers to build resilience in the wake of climate change-induced droughts, helping them sustain themselves despite crop failure emanating from excessive or scarce rains. It is encouraging the use of ‘clean’ solar energy by enabling customers to pay conveniently to solar companies for solar services using EcoCash.

“This award validates our efforts in bringing innovative fintech services to the forefront. We believe that fintech solutions that cater for the necessities of the people on the ground and during natural calamities have the power to bring financial inclusion. EcoCash in Zimbabwe is one such service which has largely replaced cash and is helping in promoting financial inclusion and alleviating the cash challenges.”

Anil Krishnan, Head of Africa Region at Comviva

EcoCash is digitizing payments, reducing the use of paper vouchers and paper receipts, decreasing paper waste and has also used ‘clean’ solar energy to power mobile money agent kiosks.

The Emerging Payments Awards are the virtual gathering place for the payments community to celebrate progress, applaud achievements and network. The award celebrates innovation and collaboration by recognising companies that have made significant advances in how we pay today. The 2021 edition was held online and recognised the most innovative projects in up to 20 different categories.

You should also check out

• Cassava results: EcoCash revenue drops by $5bn, Steward Bank’s by $1.4bn in tough year
• No Dr Mthuli, we can’t keep blaming EcoCash and mobile money for depreciating dollar

The post Ecocash Holdings Zimbabwe & Comviva win Silver in 2 categories at Emerging Payments Awards appeared first on Techzim.

The domestic remittance game in Zimbabwe has become a little crowded of late. Just a couple of weeks ago, Trolleycom launched a city to city money transfer service called MojoMula which followed BancABC’s City Hopper, NBS’ Instant Cash, Access Forex, Steward Remit and the most popular service on the market, Mukuru. Well, it looks like everyone wants a slice of the billion-dollar industry that is remittances as last week NetOne’s mobile money division launched OneMoney Remit.

@OneMoneyZw launches an exciting innovation which allows customers to send and receive Foreign Currency locally using a safe and secure OneMoney platform.#OneMoneyRemit #NetOneAt25 pic.twitter.com/MWlxsJoN5D

— NetOne Cellular (@NetOneCellular) November 26, 2021

The good news is that OneMoney Remit is coming into the market at 3% which puts them at about what the rest of the market is charging (with a couple of exceptions):

OneMoney’s domestic remittance service is only undercut by Steward Bank’s offering but miles behind MojoMula and Mukuru.

In terms of accessibility, OneMoney Remit isn’t too far behind as customers can collect at any of NetOne’s 40 branches nationwide. Additionally, there are other yet to be named partner collection points, which if they are numerous enough, will make OneMoney’s remittance service pretty competitive out of the box.

OneMoney Remit vs the competition in terms of outlets

Access Forex has ZimPost as a partner for its domestic and international money transfers. That network spans more than 60 outlets across Zimbabwe and similarly, MojoMula is close to that with its partnership with OK Zimbabwe. BancABC still only has its Pick’n’Pay booths and its bank branches while Mukuru is the clear leader, with Spar, ZB, NMB, CBZ, POSB, OK Zimbabwe, BancABC, N. Richards, Spar, Metro Peech and its Orange Booths dotted across Zimbabwe.

OneMoney Remit might be lagging slightly in terms of outlets but it has something that the others (to the best of my knowledge) don’t have.

OneMoney Remit has one trick up its sleeve

What differentiates OneMoney Remit from everyone else on the market is that you can fund USD into your wallet and send it to one or more recipients from your mobile device at any time. So, essentially you can load US$100 into your OneMoney wallet and send it through to multiple beneficiaries from your mobile device meaning there is no need to queue and fill out multiple forms for separate recipients. And according to the launch event, users will be able to make transfers from OneMoney’s *111# USSD from wherever they are.

This is something that BancABC and others have failed to do. For the longest time, we have been waiting for City Hopper to have a wallet or for the service to be connected to its Visa prepaid card. Now in saying all of that the idea of a wallet based remittance service isn’t exactly new. EcoCash Holdings Zimbabwe’s Cassava Remit, for example, will allow money to route money to your EcoCash wallet for international incomings. However, for the domestic remittance game, this is fantastic from OneMoney.

All in all, OneMoney Remit gives customers more options and a variety of features. It will be interesting to see how it does against the competition in the long run.

You should also check out

• MojoMula, the newest city to city money transfer service
• BancABC’s City Hopper has processed over US$10 mil in a year
• Steward Bank’s new local remittance service is charging 2%!
• NBS launches “Instant Cash” domestic remittance service

The post OneMoney launches domestic remittance service: everyone wants a piece of this industry appeared first on Techzim.

Zimbabwe’s largest mobile money operator EcoCash has been experiencing some difficulties with its services this morning. From what we have seen on social media, EcoCash customers have been facing difficulties with getting into the *151# USSD, making payments and other transactions.

Good morning @Tafidhos. We sincerely regret the unpleasant experience. Please note our EcoCash services are currently intermittent. Our technicians are working to restore normal service. Any inconvenience caused is sincerely regretted. ^TG

— EcoCash Zimbabwe (@EcoCashZW) December 10, 2021

EcoCash has released a statement about the service disruption:

CUSTOMER NOTICE

Dear Valued Customer
Please be advised you may experience intermittent service disruption in trying to transact on EcoCash.
We are working to regain normal service and we will advise you once the system is fully operational.
We sincerely apologise for the inconvenience caused.

EcoCash Zimbabwe

Update

EcoCash Zimbabwe has announced that mobile money services have been restored

Dear Valued Customer

We are happy to advise that all services are fully restored and are working normally. You can do your Bank to Wallet, Pay ZESA, Pay Merchant, Send Money, buy Airtime and Pay your bills smoothly with EcoCash.

Thank you for your patience and we again apologise for all inconveniences caused.

The post EcoCash services have been up and down all morning appeared first on Techzim.

The Reserve Bank of Zimbabwe yesterday released the 2022 Monetary Policy Statement (MPS). The central bank laid out a number of new measures and here are the highlights from the document.

New Mobile Money limits

The Reserve Bank of Zimbabwe has revised the mobile money limits for person-to-business from ZWL$20,000 to ZWL$25,000 with an overall limit of ZWL$100,000 a week. The person to person limit was doubled to ZWL$10,000 with a limit of ZWL$70,000 a week.

Additionally, the withdrawal limit for banks was increased to ZWL$5,000

US$50 Bureau de Change

The Reserve Bank of Zimbabwe (RBZ) introduced a US$50 facility for individuals to access forex from Bureaux de Change at the auction-rate in Q3, 2021. A total amount of US$23.1 million was disbursed to 461 908 individuals as of 31 December 2021. This facility as small as it is, was there to meet the demand for USD for the general public who don’t have access to the Foreign Exchange Auction.

However, the RBZ in the MPS noted that there were abuses of the facility and the central bank said the following as to the refinements to the US$50 facility

“In this regard, the Bank is refining the US$50 Facility, with immediate effect, to limit it to the vulnerable members of the society, that is pensioners, senior citizens, people living with disability and those requiring forex for medical purposes.”

RBZ Monetary Policy Statement 2022

RBZ is still looking into crypto but its not what you think…

The Reserve Bank of Zimbabwe reaffirmed its position on crypto saying that it is looking to a central bank digital currency (CBDC) as opposed to adopting cryptocurrencies. A CBDC is essentially a one-is-to-one variant/representation of fiat or conventional currency.

“A CBDC is an electronic record or digital token of a country’s official currency. As such, it is issued and regulated by the nation’s monetary authority or central bank. As such, they are backed by the full faith and credit of the issuing government.”

Investopedia

In the 2022 Monetary Policy Statement (MPS), the RBZ says that it is still planning out a roadmap for its version of a CBDC.

Remittances continue upward

“Diaspora remittances amount to US$1.430 billion, a 43% increase from US$1.002 billion received during the same period in the year 2020”

RBZ Monetary Policy Statement 2022

Remittances continued an upward trend which is something that they were on course to do because, in the 2021 Mid-Term Monetary Policy Statement, remittances were up by a record 73% from the figure recorded in the same period in 2020.

You can download the full 2022 Monetary policy statement with the link below:

The post 2022 MPS wrap: Mobile money limits, crypto, remittances & more appeared first on Techzim.

POSB Zimbabwe has announced a new micro-loan facility for OneMoney account holders called Mobiloans. The loans are akin to what Steward Bank and EcoCash have been doing with their Kashagi loans which were reintroduced last year.

Dial *226# on your @NetOneCellular line now to apply for the instant POSB Mobiloan to buy stationery and smaller provisions. Money is paid directly into your OneMoney account.

*Available to all active @OneMoneyZw account holders.

POSB on Twitter

What is POSB offering

If you are a OneMoney mobile money account holder, POSB is offering a maximum of ZWL$1,500 through its Mobiloans program. The loan is payable in 30 days and we reached out to POSB’s contact centre to find out what the terms of the facility are and we were told:

• Interest Rate is 7%
• Administration fee is 1%
• Self Insurance fee is 3.5%

We were informed that if an individual fails to pay back the loan in the stipulated 30 days, they will get an additional 5% penalty on whatever balance remained. If the loan is not fulfilled in 90 days then POSB will blacklist that individual with the Credit Bureau.

What are the use cases for these loans…

ZWL$1,500 is not a lot of money, it’s about US$12.00 at the auction rate and nearly half that if you are going by the varying street rate. So if you are in a bind and you need cash they could be an option but personally, the interest rates and fees associated are not enticing.

But, if you are in a tight spot that might be a cost worth paying. I tried to give the POSB’s Mobiloans a try for myself by dialling *226# and I got an error that read:

So it looks like you’ll need to have used your wallet in the past three months to qualify for POSB and OneMoney’s micro-loans.

Also, it would be remiss of me not to go back to the Kashagi comparison because it appears that OneMoney is trying to get people to use its service. However, unlike EcoCash, OneMoney doesn’t have a sister company that is a fully-fledged Bank to support a credit facility.

It’ll be interesting to see if this works and if you have applied for POSB’s Mobiloan facility, let me know in the comments below.

You should also check out

• EcoCash & Steward Bank offering customers ZWL$1000 loans in KaShagi part 2
• Podcast On Steward Bank *236# And Kashagi Nano Loans
• Diasporans, you can open a bank account at the airport/border, no branch needed

The post POSB launches loans available only to OneMoney customers appeared first on Techzim.

Zimbabwe has a fascinating financial history. As a nation we have always been interested in the world of finance. In the early nineties, the Zimbabwean government liberalised the banking sector and in just over a decade, 14 new indegenous banks had been licenced. Yes, fourteen banking licences were issued, from CBZ in 1991 to Time Bank in 2002.

At the time this felt like a good idea. The main goal was to break the dominance of the foreign banks. So, the govt actively encouraged locals to try their hand at this banking business. Hence why the RBZ dished out banking licences at a rate of more than one every year for 11 years straight. 

To our Gen Z friends, what happened next was a massacre. Our now familiar foe, hyperinflation ravaged through those shiny new indegenious banks. See, we had already seen three banking institutions bite the dust in 1998 and 2000. However we had not seen the ‘bank-wide liquidity crisis’ monster which took the souls of fourteen banking institutions in 2004 alone. 

Fourteen bank failures in one year. Sheesh.

There were other factors in addition to hyperinflation that led to this madness. The RBZ had a lot of blood on its hands thanks to its slothly responsiveness and lax monitoring. The banks were riddled with managerial problems mainly arising from ownership concentration as most were family owned. There was fraud, poor asset management, insider lending and concentration of loans to specific individuals/firms. 

It was brutal and so my dear Zoomers, please bear with us millenials and our elders as we are trying and failing to conjure up trust in the farce that has been the Zimbabwean banking industry. 

Banking’s bankless resurgence – fintech

After the 2004 mess, the escalation of the hyperinflation crisis and further bank closures, Zimbabwe ended up with the biggest proportion of the formerly banked. As adoption of foreign currencies increased in the market, the National Mattress Bank rose to prominence and banks had no appeal to the masses. This, despite the benefits that can be found with those banks.

If a business had ‘bank’ in their name, we wanted nothing to do with it. So, the solution to this came with mobile money. Indeed the fintech innovation called mobile money offered hope to a nation that was desperate for banking services, but just not from banks. 

What banks offer customers is the ability to save, borrow and exchange money safely. Zimbabweans shun banks for many reasons, the lack of trust being the major one. The other reasons being high fees and charges, long distances to bank branches, challenges in getting KYC documentation, especially the proof of residence. 

Mobile money providers (Ecocash, OneMoney and telecash) stepped in to offer more or less what banks offered – ability to save, borrow and exchange money. All without much of what we hated about banks. 

We could trust the telcos that offered mobile money wallets because we had no reason not to. Mobile money providers charged lower fees and did not require great grandparents’ birth certificates or proof of residences to open accounts. They solved the ‘long distance to a financial institution’ problem too by investing in wide agent networks. 

Fintech dominance

It was no surprise then that mobile money took over. Financial services without banks was a deal Zimbabweans could not pass up. In fact, we so loved this mobile money, EcoCash in particular, that it reached communities that had never had access to the elitist formal banking sector. At one point, EcoCash handled 80% of ALL financial transactions by volume in Zimbabwe.

As we saw above, the govt and its central bank liberalised the banking sector in the 90s so they could deal with foreign banks’ dominance. Post dollarisation, they found that they had a dominant force yet again  – this time in the form of the fintech giant EcoCash. The sector was already open to other players and yet one player continued to dominate and so the plan was hatched – clip EcoCash’s wings.

Transactions limits were introduced, the expensively established agent network was dismantled and lawsuits were threatened. The govt’s plan to curtail EcoCash and mobile money’s growth kind of worked. In mid 2020 when mobile money was temporarily banned, there were 5.3 million mobile money accounts and in December 2021 that figure had fallen to 4.1 million. Mobile money volumes fell from over 400 million transactions in December 2020 to around 340 million as we closed 2021.

Zim not in line with global trends

The Global System for Mobile Communications (GSMA) industry report for 2021 shows that the number of registered mobile money accounts grew by 12.7 percent globally in 2021.Whilst in Zimbabwe, once considered one of the leaders in this space, the number of accounts fell 21% during the same period.

2021 was also a record breaking year for fintech financing globally. CB Insights reports that there was a 168% increase in funding, from US$49 billion in 2020 to a record $131.5 billion in 2021. 

How much of the $132 billion made it to Zimbabwe? I’d imagine little, if any. Investors no doubt saw how a fintech player that had succeeded fairly and squarely was cut down and had executives threatened with jail time. They saw how mobile money was temporarily banned and how strategic components (agents) of a successful mobile money service were outlawed. 

They saw a nation moving from mobile money to deal in cash and so not many investors were knocking on Zimbabwe’s door. So much for Zimbabwe being open for business. We may be open but the unpredictable nature of the Zimbabwe policymakers/regulators adds significant risk to an already risky economy. 

2022 might be interesting though

We shall see what 2022 has in store for us. If not mobile money per se, there is a fight in the remittance business that is shaping up to be interesting. These remittance providers, especially domestic USD remittance providers are starting to look like the mobile money of old. By offering wallets, users can save (up to a low limit) and exchange foreign currency. What’s lacking in the meantime is the option for users to borrow using their remittance wallets. 

In 2021, we saw a number of players enter the ring with one of the curious ones being InnBucks which appears to have all the necessary components to dominate. At launch, an InnBucks wallet user could only load up to a maximum of US$200 in their wallet. I wonder if the RBZ will allow an upward revision of that limit. However, their branch/agent network is good.

So, it appears that remittance is where the fun will be. Until the govt feels remittance players have become too dominant and folds the whole industry. We shall see.

Then there is the mysterious RBZ fintech sandbox which has been a thing for over a year now. The RBZ boasted that “the Sandbox had received 112 registrations on the online portal and a further 31 applications at various stages“. We are still in the dark on who the 112 are and what exactly they are working on. The RBZ is keeping its cards close to its chest and that can’t be attracting much investment in the space. Again, we shall see.

The post Zimbabwe trending in opposite direction to the rest of the world in fintech appeared first on Techzim.

EcoCash allows users to have both a Zimdollar and a foreign currency wallet using the same phone number. So, if you have an EcoCash account, you already have the foreign currency account (FCA). 

For now only two foreign currency accounts are available, the Rand account and the USD account. They work just like the Zimdollar wallet; you can receive money, make payments, send to others, cash out etc.  

To access this FCA wallet, you simply dial *151# → Option 7 ‘Wallet Services’→Option 5 ‘Multicurrency’→Option 1 ‘Change Currency’→Choose the currency you want. You will have to go through the same process to switch back to the local currency.

Like I mentioned, you can use this FCA wallet to make payments. But how do you get money into that account? Only two options remain; either you receive money from remittances or from another FCA wallet user sending you money. 

FCA wallet cash in suspended

You can no longer cash in yourself. You could have the foreign currency in hand that you want to use to pay for something or to send to someone else but you cannot simply cash in that money. This is weird. 

In Zimbabwe, both the government and private companies that can accept deposits are bending over backwards to get people to deposit/ cash-in their forex. It stinks to high heaven that EcoCash won’t allow you to cash in. You can just sense some govt sized impediment here.

Rough going for FCA wallet

EcoCash officially launched the FCA wallet back in late 2018 but only 17 months later EcoCash was triumphantly announcing ‘FCA wallet is BACK’. In only 17 months the service had been launched, fallen down to purgatory and resurrected. 

The ups and downs over the years ended up causing confusion even amongst EcoCash customer service employees. Today, like I mentioned, the service is still up and running albeit with some features missing. 

EcoCash customer service personnel told me I could cash in USD/Rand at any Econet shop. I went to an Econet shop in my hood and was told cash-ins could only be done at Avondale and two other branches. I thought okay, the customer service lady was mistaken.

So, I went to the Avondale Econet shop only to be told they no longer accept cash-ins. They told me no branch accepted cash-ins anymore. 

Naturally I got back in touch with the customer service personnel via call, twitter, Facebook etc. On all those platforms, they assured me I could cash in at any Econet branch. I told them I had been told otherwise at two branches and they assumed I had tried to do this way back when the service was initially suspended. 

I corrected their assumptions and they made some calls and then came back to me. What do you know, they were wrong. I had made the trips for nothing. Somehow, the memo had reached the Econet shops but skipped the customer service desks. 

How that happened, I don’t know. If we can’t trust what customer service tells us then why do they even exist. You would think the people who respond to customer queries would be the first to be notified when there are changes to products and services. Someone forgot to tell them, it happens.

No wonder the physical branch won’t die

Recently we saw DStv backtrack on the decision to close their Joina City branch. They are yet to tell us why they changed their mind but if the EcoCash customer service story is anything to go by, remote customer service still has aways to go in Zimbabwe.

Not only did the EcoCash customer service staff give me outdated information, they hung up on me multiple times. It took all the patience that flows in my veins to hang on, only to get false information. 

One guy literally went, “Hello, thanks for calling EcoCash. How can I help you? I can’t hear you if you’re speaking.” Then hung up, all within 5 seconds. I’m a PG-13 guy but I gotta admit, I cursed after he did that. I had been waiting for him to pick up for close to 8 minutes so don’t judge me.

That wasn’t my first 8 minute call. I had tried several times before the ‘efficient’ guy picked up. Twice, the network just dropped as I was making my query. Annoyed me to no end. Why was that only happening after someone picked up? Yet another time, another lady was almost as impatient as the ‘efficient’ guy and hung up. 

What is making these employees impatient? Are their performance appraisals based on number of calls answered? If so, EcoCash should rethink it. I know they say the calls may be recorded but the supervisors can only go through a few random recordings and may be fooled into thinking all is well. 

They can be fooled because it is not every customer service employee who acts like the ones I mentioned above. See, I had good conversations on that same 114 hotline on different days. So, It could be that some shifts are good and some are bad and I got to experience both.   

I hope to see improvements

Whatever the reason, I now understand why you still see queues in Zimbabwe despite most of the companies investing in customer care. You get a better experience in person than you do on any other platform. 

That’s a shame because the trend clearly shows that physical branches are being closed. So, customers are being left with a terrible option. I fear that for some services that are not too essential, the terrible customer service experiences might put people off the services themselves completely. 

This is not just an EcoCash problem. I have had similar experiences with support staff from other companies. It’s not even a Zimbabwean problem. Companies the world over are skimping on investment into customer service and inconveniencing customers. 

[Update] The cash-in service was suspended when agent services were shut down by the RBZ. That affected even Econet shops’ ability to accept cash ins. The customer service personnel had outdated information when they advised that customers could cash in at Econet shops.

So please note, the cash in service has been inactive since then and at no time was it brought back. That means if anyone who is not employed by EcoCash tells you otherwise, be wary, they may be trying to scam you somehow. If the person telling you this is an Econet employee, don’t mind them, they are mistaken and working with outdated information.

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It was just a matter of time, wasn’t it? With domestic remittance services launching left right and centre, EcoCash was the last marquee name that wasn’t in the mix. Which was, until last night, a little surprising…

The remittance game in Zimbabwe is one of the most sought after because the figures for incoming funds have been increasing over the last couple of years even when early pandemic projections had them going down in Sub-Saharan Africa.

In 2021 the figure for Zimbabwe stood at US$1.430 billion which was a 43% increase from the sum registered in 2020 and the year of the pandemic saw remittances hit a billion which surpassed the then all-time high of US$939 million recorded in 2015.

With the numbers continually on an upward trend, companies have tried to position themselves wherever they can to make the most out of cash inflows. We saw a lot of activity from banks like CBZ launching a dedicated money transfer branch, to remittance startups like Senditoo and Shumba Money offering limited run transaction free promotions for cash sent to Zimbabwe.

On the domestic front, businesses have also tried to find out where they fit into this and we have seen a number of domestic remittance services like BancABC’s City Hopper, NBS Banks’s Instant Cash, Steward Bank Remit, Mojo Mula and many others. Even mobile money operator OneMoney launched its own service (OneRemit) to try and muscle in on local foreign currency trade. And now the country’s largest mobile money service EcoCash has thrown its hat in the ring.

EcoCash domestic remittances

Last night EcoCash Zimbabwe announced that it would be entering the domestic remittance game through its EcoCash FCA wallet. The mobile money operator said that customers will be able to do this through a new shortcode, *153#.

This new access platform is there to give some separation from the conventional EcoCash *151# which is for local currency only. And for those who prefer using the EcoCash app, the service is there but you will be able to switch between local currency and USD.

Limits, cash-in/cash-out, and charges charges charges

The service is open for everyone even if you aren’t a registered EcoCash customer. However, there are some differences in how much you’ll be able to send. If you are a registered EcoCash customer, you will be able to send US$500 per week with a limit of US$2,000 per month with those who are unregistered only getting to send half that amount. This is not out of the ordinary because those are similar terms to BancABC’s City Hopper.

As with any other remittance service, you will be able to cash in and out at the Econet Shops nationwide or you can cash in and send the money through your FCA Wallet. To make a transfer in person, you will, of course, need to bring with you your ID/Driver’s Licence/Valid Passport and the money you wish to transfer.

The next question is “How much is this all going to cost?” and the answer to that question is:

From the tariff table, EcoCash’s domestic remittance service looks to be the cheapest in Zimbabwe when you are going up to the higher figures (for just sending money, it’s complicated but I’ll explain). For example, if you want to send US$100 (as a registered customer) you will be charged 1.56% which is cheaper in comparison to the competition because for the same amount you will be charged:

However, on the receiving end if you choose to cash out the money you will be charged US$2.61 for the US$100 you have received. So, if for example, you owe someone the US$100, you’ll have to factor in the cost of sending the money US$1.56 as well as the US$2.61 if they intend on cashing out. The fees, according to the launch event, are factoring in the 2% tax that the govt instated on all transactions.

Pricey, are there any benefits?

Those fees are a little steep in comparison to what is offered on the market, however, there are some benefits when dealing with a wallet-based remittance service. The first that I can think of is you can deposit the money into your EcoCash FCA in bulk (which is a default account if you are registered on EcoCash). All you’ll then have to do is send the money from your EcoCash FCA to your intended recipient or multiple people.

This might help in cutting travel costs and wait times at Econet shops if you were to do it transaction by transaction as you would with any other domestic remittance service that doesn’t have a wallet.

The second advantage is that this kinda solves the change issue that we have all encountered when transacting in USD. Zimbabwean companies love to price things in dollars and cents but can’t give you the exact change. This usually forces many to receive the remainder in local currency at whatever rate the seller is feeling on that day. And it’s rare for someone selling something to afford you a favourable rate. They will most often like to profit whatever they can from the transaction or the sale doesn’t go ahead if the buyer decides to pull out.

Additionally, if the money was meant for a specific service that requires USD then paying it out of a wallet digitally might be a better option, especially on days when that service doesn’t have an open branch.

The third benefit, which is more for EcoCash, is that customers stay within the Econet Group ecosystem. Yesterday we reported on the Econet Smart USD bundles, which are one of many services/merchants that the mobile money operator’s customers can use their EcoCash FCA wallet to pay.

These are just a few things that I could think of that might make these charges worth it. However, I would really like to know what you think about EcoCash’s domestic remittance service.

Almost forgot

At the launch event last night, EcoCash also said that it was doing a dollar for dollar promotion which will see EcoCash matching whatever you send through their domestic remittance system up to US$10.

The mobile money operator has set aside US$10,000 for this so it appears that if you put in US$10, EcoCash will credit you with the equivalent amount.

You can watch the EcoCash Domestic remittance with the player below or by clicking the link here

• EcoCash FCA wallet cash-in RETURNS. Is the informal market going to jump on?
• Econet’s Smart USD bundles are cheaper than MTN’s in South Africa. There’s much to discuss
• Strive Masiyiwa’s daughter replaces him on Econet board

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Last night EcoCash Zimbabwe launched its domestic remittance service and at the same event, the country’s largest mobile money operator also announced that Cash in services are back through its FCA Wallet that will operate from the brand new *153# USSD (and mobile app). This development looks to be in line with the near as makes no difference dollarisation Zimbabwe has been headed for, albeit at a glacial pace.

Return of the Cash-In

Late last month we reported that the EcoCash Cash-in facility was still suspended due to a directive from the Reserve Bank of Zimbabwe that said Agent Lines were no longer permitted.

Following the Government Press Release on the Suspension of Monetary Transactions on Mobile Based Money Platforms (One Money, MyCash, Ecocash and Telecash) dated 26 June 2020, the Reserve Bank of Zimbabwe (the Bank) wishes to advise the public as follows:

a) All mobile money agents are suspended from facilitating mobile financial transactions with immediate effect.

b) All merchant transactions are suspended except for receiving payment for goods and services as well as payment of utilities (water, power and airtime), which have been limited up to ZW$5000 per day for the convenience of the transacting public.

c) All mobile money liquidations should be done through the banking system.

d) All bulk payer transactions have been suspended with immediate effect.

These unprecedented measures have been necessitated by the need to protect consumers on mobile money platforms which have been abused by unscrupulous and unpatriotic individuals and entities to create instability and ineffciencies in the economy. Members of the public are assured that their bona-fide transactions will be processed normally

John P. Mangudya

Governor

27 June 2020

RBZ Statement from 27 June 2020

From that time cash-in and even cash-out were no longer permitted in Zimbabwe and the country was forced to shift to the banks for those services. In what is an interesting turn of events, Cash-In and Cash-Outs are back in USD according to EcoCash’s Domestic Remittance launch event.

The return of the cash-in facility, I think, demonstrates the power that remittances have. Before the boom we have seen over the last couple of years, it would have taken a very brave individual to predict that cash-ins (local currency or FCA) will be brought and for EcoCash no less.

That being said EcoCash’s closest competitor OneMoney launched its own remittance service (OneMoney Remit) which works on similar principles. I would speculate and say they probably got the go-ahead at the same time but maybe EcoCash wanted to work on a more complete product?

Charges charges charges…

As with anything to do with EcoCash there will be an audible sigh before we look at what it will cost to do a cash-in. Well, according to the EcoCash team last night there are no fees for depositing money into your EcoCash FCA account up to US$5. After that, all you’ll have to pay is the dreaded Intermediary Money Transfer Tax (IMTT) or more commonly referred to as the 2% Tax. So, there is no charge that EcoCash is levying for this service, all you’ll need to meet the government’s requirement for the transaction.

If you want to cash in, you can do so at any Econet shop nationwide. You can deposit the money into your or someone else’s wallet. The latter will be through EcoCash’s Domestic Remittance service.

Will the informal sector jump in on this?

EcoCash is a massive company with millions of subscribers, and many of them are in Zimbabwe’s very informal economy. The one thing that killed access to digital payment options, especially in remote areas without bank branches was the banning of agents and by consequence cash-in and out.

This left many resorting to transacting purely in cash both in local currency and USD because of the lack of access to digital channels to expand options. The result of all of this was an increase in the number and power of the National Mattress Bankers Union of Zimbabwe and that hurt financial institutions because they could not get money from remote communities or reach them.

With EcoCash announcing the return of cash-in facilities at its official shops, this might cause a shift in how people store and spend their money. It’s certainly not going to happen all at once or overnight because we are all too familiar with the NOSTRO raids, flip-flopping that has happened with bond notes and the 1:1 dream we were promised way back when and the trust that has been lost.

However, this could be one of the catalysts that move things forward in a positive direction because of how ubiquitous EcoCash is as a service. At the launch event last night, all in attendance were told that merchants will soon be able to accept payment through EcoCash’s FCA facility. There was talk of priority merchants getting access first before it became more widely available.

It’s a game of wait and see now…

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Last year I had a conversation with Eddie Cross, a former member of the Reserve Bank of Zimbabwe’s Monetary Policy Committee, and in that conversation, he said we should scrap company tax, halve Pay As You Earn (PAYE), and there should be a 5% Intermediary Money Transfer Tax (IMTT) to make up the shortfall.

Since EcoCash cash-in is going to involve the 2% IMMT, do you agree with Eddie Cross? You can listen to or down that episode of Technikari with the player below. Alternatively, you can access it with the link here

• EcoCash enters USD money transfers with a domestic remittance service

The post EcoCash FCA wallet cash-in RETURNS. Is the informal market going to jump on? appeared first on Techzim.

Earlier this week through yesterday, the 13th of April, InnBucks’ USSD platform faced challenges. Users would get a message that the USSD service was not available. As a result users had to use the app instead to conduct their business. 

InnBucks communicated that they were working with Econet engineers to resolve the problem in a since deleted tweet. That, I found curious. Why was that tweet deleted? Anyway, the problem appears to have been fixed and the *569# platform is up and running now.

However, that familiar information asymmetry in Zimbabwean companies’ departments reared its head again. Some InnBucks customers were told at some Simbisa outlets that the USSD platform was being phased out in favour of the mobile app. 

This ‘development’ which turned out to not be the correct position annoyed a friend of mine to no end. He ended up having to delete some stuff from his phone to create space to download the app. 

For someone who had an emergency he did not appreciate having to buy a bundle for that purpose. His frustration was compounded by various network challenges that resulted in the withdrawal exercise taking over an hour. 

USSD here to stay

We reached out to InnBucks and can dispel the ‘reports’ which had made their way on social media. The USSD platform is not going anywhere. Said InnBucks,

The USSD issue experienced early this week was due to an internal system upgrade. 

The service has now been restored and is stable, however we are constantly monitoring the situation. 

We are NOT phasing out *569#

InnBucks

I was glad to hear this because phasing out the USSD platform would have been a mistake. 

However, the given reason raises a few questions. The earlier tweet which implied that it was a technical challenge was deleted. Why? Now, we get a different line that it was an internal system upgrade.  

I find that hard to believe. An internal system upgrade midweek and without notice? That makes them look sloppy and so I’m left scratching my head as to what’s going on here. The ‘technical difficulties’ reason was a better excuse in my opinion. 

Service disruptions in Zimbabwe

We talked about how Zimbabweans have been conditioned to accept service disruptions as normal. We have to change that and demand more from our service providers. They are not doing us a favour, we are paying for these services and should demand a certain level of uptime. This is not me picking on InnBucks, this extends far beyond them. 

Terrible timing for InnBucks

In InnBucks’ case I am afraid the system upgrade/technical challenge came at the worst possible time. A serious player recently rejoined the remittance fray and that player used to rule the roost – EcoCash.

The friend I talked about above was so put off by the InnBucks experience that he swore to switch back to EcoCash. How many other people made that drastic decision? After all, EcoCash just resurrected and that news is still fresh in people’s minds.

The decision to leave InnBucks is impulsive because it is not as if EcoCash has never faced its own network challenges. Again, this is a Zimbabwean thing.

Now is not the time for InnBucks to cede back market share to EcoCash. We need some proper competition for EcoCash and I’m not alone in thinking only InnBucks poses real competition for EcoCash currently. I would hate to see InnBucks shrink.

But maybe we are all trying to force InnBucks into a fight they do not even want. We must remember that InnBucks has never marketed itself as a domestic remittance service but rather a rewards and loyalty program. 

Well, that’s neither here nor there now. We use InnBucks as a remittance service chiefly and we are going down this road regardless of original intentions. There is enough room in the market for InnBucks, EcoCash and more.

The post No, InnBucks is NOT phasing out USSD but service disruption came at worst time appeared first on Techzim.

Why not write yet another article about Innbucks? The Simbisa Brands owned ‘wallet’ service which has been suspended by the central bank had achieved an incredible run. They came out of nowhere and their run in such a short time is way more inspiring than Zimbabwe’s second most popular mobile money service by number of subscribers: OneMoney.

How popular is Innbucks?

Simbisa Brands has not shared any specific numbers on usage. In its half year report up to December 2021 Simbisa had only this to say about Innbucks:

The group established a new business, Innbucks, in partnership with a local fintech investor. Innbucks is a mobile application which allows customers to send, receive money and buy food at Simbisa outlets. Currently the service is available in the group’s largest market, Zimbabwe. The service has been well received in the market.

Google Playstore says the Innbucks mobile app has been downloaded more than 50 thousand times. This is more than any bank application in Zimbabwe except for the CBZ Touch app which has been downloaded more than 100 thousand times. OneMoney? The OneMoney app is nowhere near Innbucks, it has been downloaded more than 5 thousand times. Of course this doesn’t mean OneMoney has less subscribers than Innbucks or less active subscribers than Innbucks.

3 weeks ago, Techzim conducted a survey to get an idea of domestic remittance services people were using to send money to each other. The survey was distributed via WhatsApp and more than 1500 people responded. 21.3% of survey respondents mentioned that they had used Innbucks to send money while 6.8% mentioned having used OneMoney. This was an open ended question where people would list services themselves without being prompted.

The first 2 big opportunities wasted by OneMoney

To understand the opportunity that exists and seemingly being squandered by Netone’s OneMoney while being exploited by Innbucks, let’s first discuss the most important opportunities to fall on mobile money operators and yet not fully exploited by OneMoney over the years:

The first opportunity was of course at introduction of mobile money in Zimbabwe. OneMoney was introduced into the market before EcoCash but EcoCash beat them in a very short space of time. This is an interesting tale that we did a case study report on 4 years ago and we will not go into it. The thing to note is that this greenfield opportunity was wasted by Netone and EcoCash won resoundingly.

2015 to 2016 brought the second huge opportunity for OneMoney to gain some significant share of the market. At this time, Zimbabwe was transitioning to a literally cashless economy. Cash was hard to come by but people still needed to transact. With the proliferation of mobile phones, mobile money was the obvious form of money to take over from cash for day to day transactions.

The ideal scenario at this time for OneMoney would have been at least converting all NetOne subscribers to become OneMoney wallet users who would use it to transact while Econet converted its subscribers to use the EcoCash wallet. However, this is not what happened. What happened is that a lot of NetOne subscribers bought secondary Econet SIM cards just so they could have EcoCash.

Why did it happen this way? EcoCash invested in getting a lot of merchants on board meaning that if you had EcoCash you could walk into a store and use it to buy stuff. NetOne had no vision or imagination and was going through crazy boardroom coups. Opportunity squandered. In absolute numbers 2015 to 2016 is the period when EcoCash gained the most subscribers. Transitions matter.

Mobile money is coming full circle

The reverse of what happened between 2015 and 2016 is happening. No matter what Zimbabwe’s minister of finance and his central bank governor tell you, this country is re-dollarising at double speed and in the process moving from cashless transactions to cash.

The 2015-2016 transition transformed mobile money from being predominantly remittance services for people to send money to and from each other across the breadth of the country. Mobile money became a means for paying for goods and services first and foremost and sadly for OneMoney, EcoCash was way more prepared for this change.

Now, the collapse of the Zim dollar is throwing us into a transition from cashless transactions to cash being king again. When people send money to each other or lend to each other they want their transactions to be in US dollars which they can trust to hold its value and not local currency. Once again, mobile money is needed to be a remittance service.

OneMoney clearly identified this trend and they introduced a USD domestic remittance service ahead of EcoCash. This is the time for them to fight hard and take advantage of the transition otherwise history will repeat itself. Innbucks’ popularity out of nowhere proves that this opportunity exists.

What matters most

Why did Innbucks become popular? It’s the network, Stupid! Simbisa reports that as at 31 December 2021, they had 239 outlets across the country. That is their super power. When you randomly ask a person who uses Innbucks as a remittance service why they do so they will most probably tell you that it’s super easy for them to access their money because of that network.

If OneMoney want to take back share from EcoCash, they need to make a plan about increasing their footprint and they should do it quick. Right now they still have a chance because EcoCash is only offering cash in and out services at Econet shops. Their superior agent network is still sleeping most likely because the Reserve Bank of Zimbabwe is nervous about allowing those agents back online after banning them for facilitating parallel market foreign currency dealings.

NetOne has to use its advantage as a government owned entity to increase their agent network in a way that doesn’t spook the central bank. They should use government service centres dotted across the country as cash in and out points. In fact I don’t have much faith in Zimpost’s attempts at remittances; if only NetOne could convince Zimpost to partner OneMoney instead of trying to go at it alone or whatever it is they are doing. Heck, if it doesn’t go against the country’s constitution or something, I would use ZRP police stations as cash points if I were OneMoney!

That’s the mentality that’s needed to win. Can OneMoney pull it outta the bag? Pakaipa.

The post Innbucks’ growth shows OneMoney could miss yet another opportunity appeared first on Techzim.

NetOne had one of the more fascinating stands at the Zimbabwe International Trade Fair (ZITF2022). The state-owned mobile network operator (MNO) is really pushing the metaverse angle as it is their chief motto at its stall in the main hall. NetOne’s mobile money division was not left out of things because it was paying for motorists’ ZINARA toll-gate fees for some motorists entering Bulawayo.

Furthermore, OneMoney is reportedly working on e-tolls for tollgates as well as introducing the more secure chip and pin cards for the mobile money service. NetOne, on the other hand, showed us through its Agritech and edutech projects and a whole lot more at ZITF2022

You can watch our tour of NetOne’s ZITF2022 with the player below. Alternatively, you can watch it on YouTube directly with the link here.

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The post NetOne at ZITF2022: “driving the metaverse”, agritech, e-tolls, smart services & more appeared first on Techzim.

Zimbabwe’s biggest mobile money operator, EcoCash is experiencing some technical challenges this morning as Twitter is awash with customers saying they can’t perform transactions, all the way to being unable to access EcoCash via its *151# USSD.

“Our sincere apologies for the unfortunate experience. Kindly note that the EcoCash platform is currently down, our technical team is working on restoring normal service. Any inconveniences caused are sincerely regretted”

We reached out to EcoCash and we got the same response everyone is getting on social media, “Our technicians are working on it and we will advise when service will be restored“.

The post EcoCash is down appeared first on Techzim.