Dramatic title aside, automation has been a very touchy subject over the past few years and recent developments at Standard Bank SA won’t do anything to halt people’s animosity towards the digital transition the world is going through right now. The bank has announced that they will be closing off 91 branches and this is expected to affect 1200 jobs. Why? Well, put simply the bank has said they are revising their business model and because similar measures were taken in Zimbabwe last year (though not at a similar scale), this doesn’t come as too much of a surprise. Standard Bank had the following to say about this move: As part of the implementation of the new banking delivery model, some of the roles currently being performed in our branches will change. These changes will impact ap
The RTGS dollars are made of bond notes, bond coins, and electronic money. In August this year, we will know whether the electronic portion of the RTGS dollars (electronic RTGS Dollars) will still be a legal tender or not. The electronic RTGS Dollars where introduced as a legal tender after the President invoked his controversial powers called The Presidential (Temporary Measures) Powers Act. What does The Presidential (Temporary Measures) Powers Act say? The Presidential (Temporary Measures) Powers Act empowers the President to introduce legally binding laws in an emergency without going through a parliamentary process, with the law only holding for six months. The law will remain in force for a statutory period of six months, during which a Bill will have to be processed for consider...
While Zimbabwe certainly still has a biting foreign currency crisis one thing appears to have gotten less severe for some reason: The Cash crisis, which is still definitely a problem appears to have gotten less severe. In June last year whenever I wanted to cash out money from my Ecocash wallet I had to part with “20%” on average. I have Ecocash agents seem to have a weak grasp on how percentages work. Often what they mean by 20% is that they will charge 20% on the amount that you actually Cash Out. For example, if you get to an agent and cash out $100 you will get $80 In cases like this, they claim they are charging 20% when in actual fact they the cost would be 20/80 i.e. 25% Sometimes they get it right, especially if instead of asking them how much you get if you cash out a certai
Dr Jesimen Chiupika, who is one of the deputy governors of the Reserve Bank of Zimbabwe and also the Chairperson of the Deposit Protection Corporation shared an interesting chart during the Financial Inclusion Forum held in Harare today. The table she shared had statistics that show how far Zimbabwe has come in it’s quest for financial inclusion: The number of bank accounts has really jumped. In just 2 years from December 2016 to December 2018 there was a more than 450% increase in the number of bank accounts. Disproportionate growth In December 2016 there were 1.46 million bank accounts and 770 000 of these were held by women. This translates to 52% of all accounts that were held by banks then. This is not too far from the structure of our population. Fast forward to December 20
The Reserve Bank of Zimbabwe (RBZ) has just told financial institutions that its RTGS platform can now also handle Foreign Currency Account (FCA) RTGS settlements. Before today, the RTGS platform only handled transaction of bond notes but not foreign currency or US dollars. So if a company wanted to move money from one account to another, the company had to use telegraphic transfers which are relatively expensive and take days to get settled. But with this new arrangement, companies can now also use the RTGS platform to move money in lesser time (RTGS is realtime-based so no more waiting days) and at a relatively cheaper price. In essence the facilitation of FCA on the RTGS makes the movement of foreign currency in the economy more mobile than what it was when companies used telegraphic...
ZIMPOST’S money transfer service, Zipcash, is struggling to break even due to cash shortages and failure by the South African corridor to perform up to standard, acting managing director Sifundo Moyo has said. “Zimpost’s money transfer service, Zipcash, has not experienced growth to the levels that had been anticipated, mainly because the South African corridor has not been performing well,” Moyo said in emailed responses to NewsDay. “We are currently engaged in discussions with our South African counterparts so that we can come up with measures that will increase the visibility of this service,” he said. Moyo, however, said they recently concluded an agreement with Swazi post for the exchange of international financial system transfers. “The service is adversely affected by ca
People are now on a spending spree as the festive season reaches its climax. Whilst we are in the festive season mood many hardly pay regard to the cost of buying things or send money because we are just elated. However, some remain cheapskates whether it’s festive or not, to the extent that they don’t even want to pay a cent of tax. The tax I’m talking about here is that 2% tax. Some pennywise people are managing to avoid paying this tax. They are avoiding the tax when they use EcoCash (simply because its used by many people), I’m not sure if other platforms are being used to do this. So my explanations will be in relation to the use of EcoCash. How are they doing it? As you well know the 2% tax starts to take effect when you spend or send above $10. So what some ‘clever’ guys are
Zimbabwe tech start-ups are acutely aware of the challenging environment in which they compete and while funding remains limited, they continue to pitch for support and recognition. According to WeeTracker's African Startups & VC Ecosystems Report, African start-ups have raised US$168.6 million in the first half of 2018. "African start-ups have strong support system in the form of many tech hubs, incubators and accelerators. The West African nation of Nigeria has emerged as the top destination, standing next is Kenya. Trailing further are countries of Egypt and Africa," read an excerpt from the report. Although Zimbabwe did not feature in the top destinations for start-up funding according to Weetracker, the ecosystem has delivered on solutions that have the potential to disru...
The recently introduced tax on electronic transactions has seen some revisions since it was announced on the 1st of October this year. These revisions have all been welcome because they make the tax a little more bearable. The first revision was that $10 and lower values would not be taxed. The last one could be the most significant so far, the government exempted bank to mobile wallet transactions from paying the tax thus removing the double taxation situation which had been created. Since the president of the republic promised that the tax will be undergoing some revision, it’s important to put thoughts out there so they can be considered as part of that review process. It’s always easier to complain after the fact instead of taking the leaders at their word and engaging in the con
Last month we had a chance to sit and interview a forex trader and it seems a lot of people had an interest in knowing more about forex trading. Luckily there is a two-week course available on Udemy that has been made by a local fella. What will you be learning? The “Learn Forex Trading In Two Weeks” course by Happy Zhou includes lessons on: Forex trading language Analysing methods used to determine movement of prices on the forex market Learning the Metatrader 4 forex trading software Chart patterns Popular chart indicators Fibonacci indicator Supply and Demand Currency Correlations For how much? The course has a 3.5-star rating from 11 reviews but it has also been taken by over 500 students. To enrol for the course you need to part with $99.99 but right now the course is av