The Reserve Bank of Zimbabwe (RBZ), the country’s central bank, has issued a directive limiting telecommunications providers’ ability to enter into exclusive service agreements with mobile money agents. Telecommunications companies wishing to enter into such an agreement must appeal to RBZ, which may grant a waiver to the new rules based on unspecified criteria. The directive is meant to prevent telecommunications providers from restricting mobile money agents with whom they form partnerships from offering their rivals’ services.
Telecommunications providers affected by this injunction include Telecel Zimbabwe, a joint venture of Egypt-based telecommunications provider Global Telecom Holding and Zimbabwean business consortium Empowerment Corporation; Econet Wireless Zimbabwe, a subsidiary of South Africa-based telecommunications provider Econet Wireless Group; and NetOne, a mobile services provider owned by the government of Zimbabwe. Mobile money services allow customers to deposit, withdraw and transfer funds via their mobile phones. Agents are used for services such as moving cash into or out of accounts.
As of 2014, Telecel Zimbabwe reports 2.5 million customers. Global Telecom Holding is controlled by Egypt’s Orascom Group and has 83 million subscribers in Africa, Canada and South Asia. As of 2013, Econet Wireless Zimbabwe reports approximately 8 million subscribers. Information about NetOne’s operations is not available at this time.
The Reserve Bank of Zimbabwe (RBZ) was founded in 1956 and is responsible for the formulation and implementation of monetary policy in Zimbabwe. It supervises the country’s financial sector, including commercial banks and other financial institutions.
By Meraj Husain, Research Associate
About Reserve Bank of Zimbabwe (RBZ)
The Reserve Bank of Zimbabwe was founded in 1956 as the Bank of Rhodesia and Nyasaland. It is responsible for the formulation and implementation of monetary policy in Zimbabwe. It supervises the country’s financial sector, including commercial banks and other financial institutions. As of 2014, Dr Charity Dhliwayo is the acting governor of the institution.
Sources and Additional Resources
[1] All Africa: “Zimbabwe: Mobile Money War – RBZ Moves in,” http://allafrica.com/stories/201403030027.html
[2] Reserve Bank of Zimbabawe: “National Payment Systems Directive: NPS 01/2014,” http://www.rbz.co.zw/pdfs/2014%20Press%20Statements/National%20Payment%20Systems%20Directive%20-20-2-24%20Final.pdf
MicroCapital, March 3, 2014, “Reserve Bank of Zimbabwe Gives Microfinance Institutions 6 Years to Plan for Higher Capitalization Requirements,” https://www.microcapital.org/microcapital-brief-reserve-bank-of-zimbabwe-gives-microfinance-institutions-mfis-6-years-to-plan-for-higher-capitalization-requirements/
MicroCapital, February 28, 2014, “Trade Union “Mobile Money Transfer Agents Association of Zimbabwe” Formed,” https://www.microcapital.org/microcapital-brief-trade-union-mobile-money-transfer-agents-association-of-zimbabwe-formed/
MicroCapital, February 25, 2014, “Telecel Zimbabwe Introduces Debit Cards, International Remittances Via Telecash Mobile Banking Service,” https://www.microcapital.org/microcapital-brief-telecel-zimbabwe-introduces-debit-cards-international-remittances-via-telecash-mobile-banking-service/
MicroCapital, January 28, 2014, “Central Bank of Zimbabwe Imposes 5% Tax on Mobile Money Services,” https://www.microcapital.org/microcapital-brief-central-bank-of-zimbabwe-imposes-5-tax-on-mobile-money-services/
MicroCapital Universe Profile: Reserve Bank of Zimbabwe (RBZ) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Reserve+Bank+of+Zimbabwe
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