The Central Bank of Zimbabwe reportedly has imposed a five-percent tax on the fees charged to effect mobile money transactions such as cash transfers, cellular phone payments and utility bill payments following lobbying effort by the Bankers Association of Zimbabwe, a nonprofit organization of member banks. The lobbying efforts reportedly follow the refusal of Econet Wireless of South Africa to integrate EcoCash, its mobile money platform, with Zimbabwe’s banking system. The new regulation subjects mobile money platforms to the same tax charged on automated teller machine (ATM) and point-of-sale (POS) transactions.
As of January 2014, EcoCash has 3 million subscribers. Econet has operations in Africa, East Asia, Europe and South America.
By Megan McGowan, Research Associate
About Econet:
Based in South Africa, Econet Wireless is a telecommunications group with investments in Africa, East Asia, Europe and South America. It offers mobile and fixed telephone services, internet service and satellite services. The group’s subsidiaries include Econet Wireless International, Econet Wireless Africa, Econet Wireless Global and Liquid Telecom. Ecocash is Econet’s money transfer service that allows Econet customers to transfer money between mobile phones.
Sources and Additional Resources:
[1] IT Web Africa: “Zimbabwe Imposes Mobile Money Tax,” http://www.itwebafrica.com/mobile/323-zimbabwe/232178-zimbabwe-imposes-mobile-money-tax
MicroCapital: “Zimbabwe Microfinance Bill Would Seek to Benefit Small and Medium-Sized Enterprises (SMEs),” August 26, 2013, https://www.microcapital.org/microcapital-brief-zimbabwe-microfinance-bill-to-benefit-small-and-medium-sized-enterprises-smes/
MicroCapital.com Article, “MICROCAPITAL BRIEF: Deputy Prime Minister Mutambara of Zimbabwe Urges Banks to Stop Seeking Legal Action Against Econet’s Ecocash Mobile Banking Service and Start Competing,” March 13, 2013, https://www.microcapital.org/microcapital-brief-deputy-prime-minister-mutambara-of-zimbabwe-urges-banks-to-stop-seeking-legal-action-against-econets-ecocash-mobile-banking-service-and-start-competing/
MicroCapital: “Econet Wireless Zimbabwe, Telecel Zimbabwe Each Launch Mobile Banking Services,” October 24, 2011, https://www.microcapital.org/microcapital-brief-econet-wireless-zimbabwe-telecel-zimbabwe-each-launch-mobile-banking-services/
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