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NewsDay

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Financial inclusion needs other support mechanisms

Editorials
From her figures, there has been a robust rise in the number of Zimbabweans who are now able to transact with banks through various avenues, including digital methods.

RESERVE Bank of Zimbabwe (RBZ) deputy governor Jesimen Chipika this week gave promising figures about Zimbabwe’s financial inclusion drive.

From her figures, there has been a robust rise in the number of Zimbabweans who are now able to transact with banks through various avenues, including digital methods.

This is an important achievement, given the fact that transactions in cash had been made difficult by liquidity problems.

It remains a fact that underdevelopment in some parts of the country meant most people were cut off the financial system.

And just like in health and education, they travelled long distances to access services, often losing huge amounts of money in transport and other costs.

The National Financial Inclusion Strategy, established in 2016, appears to have bridged this, and as Chipika said, 83% of Zimbabweans are now transacting.

The RBZ had targeted 90%, but still 83% is a high enough figure. In the next phase of the strategy, 90% is likely to be achieved. But while the RBZ’s strategy has ameliorated a dire situation, it is only part of bigger problems that the country needs to address.

Financial inclusion would not make sense when people are poor. The only people who will benefit from these innovations are those with money, and the rich mobile money transfer technology owners who cash in on commissions and fees.

Banks have already demonstrated that they have cashed in on the boom, and are generating huge amounts in non-interest incomes for their shareholders.

Authorities must twin this important financial inclusion campaign with investments into tools that help people improve their incomes and livelihoods.

Strategies like improving investments into remote communities through the devolution strategy would go a long in boosting the rural economy.

Government must improve the education system to build a community with capacity to locate opportunities and exploit them, along with rural health centres to address growing health needs.

The list of problems affecting rural communities and the urban poor has been growing and authorities have a duty to tackle them in order to create a hospitable society.