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Govt Told To Address The Root Cause Of Inflation & Not Scapegoat Mobile Money Platforms

Govt Told To Address The Root Cause Of Inflation & Not Scapegoat Mobile Money Platforms

The government has been urged to address the real causes of inflation in the country instead of targeting mobile money platforms.

This comes when the foreign exchange rate on both the official and parallel markets is continuously going up despite a crackdown on some mobile money platforms such as Ecocash and On Money.

In the recent past, the Reserve Bank of Zimbabwe (RBZ) barred some fintech companies and digital financial services providers from dealing in foreign currency in a move viewed by some as an attempt to end the dominance of the United State dollar as local tender.

The government adopted the USD in 2009 when Zimbabwe nosedived into hyperinflation but has been trying to phase it out since 2019.

Tendai Mupaso, a Zimbabwean e-commerce and fintech products builder, told Quartz that the country needs to address the root cause of inflation and not scapegoat mobile money platforms. Said Mupaso:

The parallel market rate ($1:ZWL400) has constantly increased despite shutting down some mobile money channels (against $1:ZWL150 on the official market). The country needs to address the root cause of inflation and not scapegoat mobile money platforms.

Mupaso added that the shutting down of new digital financial services providers such as Innbucks means Zimbabweans now have to rely on traditional money transfer services whose costs can be restrictively high.

According to Juda Levine, the CEO of Mondato, a digital finance advisory company, mobile money agents are an important component of the mobile money ecosystem, especially in the African context.

More: NewZimbabwe.com

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14 Comments

gombototo 2 months ago

*WISDOM OF FOOLS*

You are a poultry farmer. You inject your broiler with enhancement drugs. Your daughter is in the University and a major consumer of chicken and chips. Wisdom of a fool.

You are a parent. You buy exams for your child and lie to him he is the most intelligent kid in the world. He goes to university and does the wrong course. Either he drops out or he becomes a quack in that sector. He eventually gets a calamity. Wisdom of a fool.

You are a senior government official. You take a bribe. Contaminated sugar is allowed in the country. Your aging mother in the village gets cancer due to the contaminated sugar. Wisdom of a fool.

You are a senior government official. Government provides funds for building a dam to aid irrigation in your village. You loot all the money. Your own kinsmen back in the village die of hunger. Wisdom of a fool.

You are a senior public official. You get CDF funds to build schools. You loot it all and make kids drop out and become armed thugs. They hijack you, break into your house, steal from you and rape your daughter. Wisdom of a fool.

You are in charge of a hospital, you loot money that is meant for drugs. Your brother gets sick at night, he is rushed to hospital but there are no drugs. He dies and you are left struggling to educate his eight kids. Wisdom of a fool.

You are a police man working in Traffic. You take a USD100 bribe to let an overloaded Taxi pass. Your own villagemates and colleagues on leave die in a crash due to the taxi overload. Wisdom of a fool.

You are a rich man. You refuse to assist the poor. They become thieves. They break into your house, rob and kill you. Wisdom of a fool.

You are a voter. You are bribed with a t/shirt, USD500 and some simple promises in fundraising drives. You vote in a thug. Services delivery goes down. You complain for five years. Wisdom of a fool.

“Now look, this is exactly the kind of people that we elect. I wish this poem reaches every African in the world, I wish this can be written in notice boards of all places.
*Copied and Pasted*
©️2022


1234 2 months ago

the root cause is RTGS...that useless 100bond of yours u introduced...let's not brag ourselves of having participated in war that ended 42 yrs back yet the economy is crumbling...y can't u fight the economic crisis and the exorbitant skyrocketing prices in stores...


Nick Mangwana 2 months ago

_WE WILL FIX THE ECONOMY IN NO TIME!_

*CHAMPION IN Chief PRESIDENT ADVOCATE NELSON '' WAMBA'' CHAMISA*

1/8The economy is tanking and sinking. Zimbabweans are suffering at the hands of bad leadership, poor governance and porous economic policies. As the alternative government, we propose the following to be considered and adopted:

2/8There is a crisis of confidence in the market,citizens are suffering from the price hikes and deepening poverty level.All gvt policies must be demand driven,inclusive &fully consultative.The recent attack on CZI position paper by Gvt is regrettable and must never be tolerated!

3/8 Stop the auction system and go for full dollarisation - this will immediately remove distortions,multiple pricing,arbitrage, secure stability and save exporting companies from imminent collapse and help all businesses and economic agents to preserve capital.

4/8 In line with (3), we should immediately work on a de-dollarisation road map which is inclusive and evidence based and build on consensus as opposed to command economics and threatening businesses with statutory instruments.

5/8Embrace SMART agriculture with a view to foster more active role of the market & gvt providing oversight to minimise distortions caused by agricultural subsidies.The commodity exchange should be used as an effective vehicle for funding & marketing of agricultural commodities.

6/8To address the economic challenges (such exchange rate spiral and inflation) caused by short term finance on infrastructure,gvt must use long long term finance such as diaspora bonds (eg Ethiopia-the Grand Renaissance Dam) and public private partnerships to fund infrastructure

7/8 Stop corruption and save US$2.8bn,being the US$1.8bn through illicit financial flows and US $1bn wasted in state owned enterprises and line ministries).This money,if saved, is a real game changer.Greedy, indiscipline and corruption stand as the biggest threat to the economy!

8/8 We must embrace a genuine social contract, which is inclusive to move forward as a nation.Also Expedite a Pre-Election Pact on elections & reforms,constitutionalism and respect of human rights so we restore our integrity in the family of nations.Genuine dialogue is key!

*#Fakapressure*
*#DiraHakoRizare*


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Maparamuro 2 months ago

Money transfer should be the business of banks but in Zimbabwe banking system is dead hence the opportunist money transfer agencies are taking advantage of the gap, like banks they make a profit from their services and this affects the overall cost of goods and services


bev sbanda 2 months ago

mate money transfer is everywhere even in developed continents
ask any1 in diaspora they term it black tax

Zim 1 2 months ago

government ndiyo ine vanhu varikuita izvi , vatrikunyepa kurasika mumba yeround ndovarikupa mamoney changer vacho mari kuti vaende pabalack makert


bonzo 2 months ago

chave kudiwa is simply to swallow their pride and resign


SADZA 2 months ago

DIRA RIZARE WANGU

Machiavelli 2 months ago

Resign? Are you out of your mind?
Have you ever tried to take a bone from a rabid dog? It will maul and kill you. Same same neZANU.

Svy 2 months ago

true swallow pride and leave office

CCC, Chamisa 2 months ago

Voterai Chamisa, voterai CCC


tyt 2 months ago

change is needed...

Jah🇿🇼Tsvarie-07 2 months ago

The root cause is the Rtgs$ coz noone needs it in business, US$ is the solution...


dread 2 months ago

the root cause is Zanupf if we remove the elephant in the building everything will be smoothy


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