Zimbabwe’s economic trajectory is experiencing a pivotal shift as mobile money agents, previously under scrutiny for their role in the downfall of the Zimbabwean dollar, are staging a significant comeback.
This resurgence is orchestrated by governmental authorities who, having previously curtailed their operations, are now recognizing their potential in spearheading a new initiative centred on the country’s gold-backed currency.
As per a proposal from Zimbabwe’s Treasury, Econet Wireless Zimbabwe Ltd., with the backing of entrepreneur Strive Masiyiwa, alongside state-owned entities NetOne and Telecel, are poised to recommence their operations, as per a report by Bloomberg. Their primary aim is to foster the adoption of the ZiG (Zimbabwe Gold) and curtail the influence of the informal market.
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The introduction of ZiG on April 5 marked Zimbabwe’s sixth attempt in 15 years to establish a stable local currency, prompted by the precipitous decline of the Zimbabwean dollar, which had plummeted by 80% against the US dollar within the current year alone.
In July 2020, these agents, numbering in the thousands, faced prohibition amidst allegations of levying surcharges on transactions, particularly those facilitated by Econet’s Ecocash, the predominant mobile operator. While such practices were implicated in the Zimbabwean dollar’s numerous collapses, the company has consistently refuted any wrongdoing.
Now reinstated, these agents are poised to operate as currency exchange bureaus, facilitating public access to small denominations of foreign currency for everyday transactions.
Deputy Finance Minister Kuda Mnangagwa elucidated that individuals with Econet lines registered for Ecocash will seamlessly convert between ZiG and US dollars at official exchange rates, obviating the need for resorting to illicit channels.
