RBZ helps billions change hands
THE Reserve Bank of Zimbabwe (RBZ) has made huge efforts to include previously marginalised people into mainstream financial system with billions of dollars having been transacted within this target sector since the bank launched its financial inclusion strategy in 2016.
Initiatives were rolled out under the National Financial Inclusion Strategy (NFIS), covering mostly excluded population groups across the entire country.
RBZ governor Dr John Mangudya said, globally, financial inclusion has transformed “the hopes of low income earners, previously excluded from formal financial services, and opened avenues for enormous opportunities to access a broad range of financial products and services.
In an update on the journey travelled since deliberate efforts were made to bring low income individuals into the mainstream of financial transacting, the central bank said loans to micro, medium and small enterprises had jumped from just $131 million to $2,8 billion.
Credit to women vaulted from $277 million to $1,18 billion while loans by banking and deposit taking institutions to youth entrepreneurs reached nearly $1 billion.
“The number of active mobile money subscribers increased from 3,3 million in 2016 to 7,7 million in March 2020,” the RBZ said.
Likewise, the number of standard POS machines and bank cards increased from 16 363 and 2 406 139 to 122 580 and 5 760 569 by April 2020, respectively.
Further, the central bank update shows that a number of regulatory reforms covering banking, capital markets and insurance sector were undertaken to enhance access to a range of financial services. Initiatives were also undertaken to enhance access to financial markets by retail investors and MSMEs, which saw the establishment of an SMEs bourse and an online platform (C-Trade) for retail investors.
“The nominal value of transactions on the C-Trade platform increased from $5 million in September 2019 to $53,25 million as at September 2020,” the RBZ noted, with the value traded by youths rising to nearly $40 million from 1,23 million.
Apart from brick and mortar, the RBZ said, commercial banks have managed to leverage on financial inclusion to increase outreach and delivery efficiency through mobile and agency banking at minimal costs.
Since the launch of the NFIS in 2016, significant transformation of the financial inclusion landscape has been witnessed in Zimbabwe.
During the first phase of the NFIS, Zimbabwe has witnessed significant progress in terms of financial innovation and digitisation, expanded product offerings, diversification and customer centricity.
There has also been more alternative delivery channels, increased financial literacy awareness and outreach programmes, enhanced consumer protection, low cost bank accounts and increased access to financial products and services by the various target segments.
Broadly, targets included women, MSMEs, rural and smallholder farmers, youths and people with disabilities. The financial inclusion framework underpins efforts by the RBZ, the Government, private sector and other stakeholders towards the shared vision of financial and economic inclusivity in the country.
It provides a platform for public-private co-ordination and co-operation as well as harmonisation of policies and programmes related to financial inclusion.