Cotton farmers resist mobile money transfers

COTTON farmers in the Lowveld are resisting being paid through mobile money systems like EcoCash and One Wallet, arguing that Government must first address the growing trend of cash vendors, who are charging exorbitant interest rates for cash withdrawals.

The development has since been worsened by some Government departments in various districts, which are still rejecting transactions in plastic money, while schools and clinics are also reportedly charging an extra fee for transactions undertaken using plastic money.

Addressing headmen and village heads at Chief Garahwa’s homestead here on Wednesday, chairman of the Cotton Producers and Marketers Association Mr Steward Mubonderi said farmers were disgruntled by the rising trends of cash vending.

He said farmers were being charged as high as 30 percent for cash withdrawals by the unscrupulous money vendors.

“We are saddened by the growing trend of cash vending in Chiredzi, Checheche and Mwenezi,” said Mr Mubonderi.

“Farmers are losing from 10 to 30 percent for every cash-out transaction we make. We are not happy with that, and can never be happy when we lose our hard earned revenue that way.”

Mr Mubonderi said the farmers welcomed the recent pronouncement by the Reserve Bank Governor Dr John Mangudya that farmers would get $40 in cash for every cotton bale delivered.

“This is a good move and we want that to be fulfilled as this will boost the farmer’s morale,” he said.

The farmers said they could not pay for expenses like schools fees using platforms like EcoCash and One Wallet.

“At first we would receive payments through EcoCash and we had no problems with it, but when you go to school and try to pay fees at Chinyamukwakwa Primary School, the headmaster is refusing to take payments through EcoCash saying they want cash,” said one farmer.

Another farmer said at Munepasi Primary School, also in Chipinge South constituency, they were requesting an additional 20 percent fee for every payment made through EcoCash.

Chipinge South Member of Parliament Cde Enock Porusingazi said farmers should make sure that they undertook their transactions with registered dealers to avoid cases of being duped.

“Your phone resembles money, this is EcoCash and is like those Cotton cheques, which farmers received long back after selling their crop and we must not be afraid of being duped,” said Cde Porusingazi.