Ecocash

EcoCash removes transfer fees

As Zimbabwe and the rest of the world battle the COVID-19 Coronavirus pandemic, EcoCash has moved to remove all processing fees for cash transfers designated as COVID-19 relief, to enable the Government, Non-Governmental Organizations (NGO)s and any other relief organizations to freely give the support to vulnerable groups and communities at no extra cost for the transfers. The CEO of Cassava Smartech Zimbabwe, the holding company of EcoCash, Mr Eddie Chibi, said the goal of the company was to use their digital solutions to address the current epidemic. “We are a digital capability company and our goal is to create as many digital solutions as possible to address the current COVID-19 crisis so that lives are saved, first and foremost,” said Mr Chibi. “The wide distribution of some of our products and services means that we can use our platform and smart data network to reach even the most vulnerable in our country, and create services that bring convenience to millions of citizens.” Mr Chibi said his company was currently working with the government and development agencies to avail their platform and digital services network to deliver relief where its needed most “as quickly as possible”. Mobile money and digital electronic transfers become a vital mechanism through which help can be extended to vulnerable groups in times of crisis, speedily and in a convenient and safe manner. The EcoCash platform has over 11 million customers registered in Zimbabwe and accounts for the bulk of transaction volumes processed in Zimbabwe. It has over 200 000 outlets, accounting for the country’s largest distribution network of agents, merchants and partners for the payments of good and services. During the COVID-19 epidemic, the ability for people to send money and pay merchants (shops, pharmacies, hospitals, and many others) through their mobile phones minimizes the need for physical contact, and therefore lowers the risk for potential transmission of the virus between individuals. Zimbabwe is among the countries with the highest level of digital financial inclusion in Africa. EcoCash launched proximity payments two years ago, a proposition that allows shop till operators to enter a customer’s number on a point of sale (POS) machine and the customer receives a push message at ‘far proximity’ confirming the payment on their mobile phone. EcoCash is currently working with supermarkets to increase the adoption of proximity payments, according to its CEO Ms Natalie Jabangwe. Ms Javangwe said: “Customers should be able to order over the phone or online and make a proximity payment from the comfort of their home without the need to travel to the shop. Our partnership with Vaya makes goods delivery safe and convenient”. She said so far Food World and Spar shops were piloting the proximity payments at scale, before a full telesales and proximity scale-up operation is launched across the country with other retailers. “Digital has changed everything in this global crisis. Work and communication has moved to the digital sphere in an unprecedented fashion,” Ms Javangwe said.

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RBZ Ban on Ecocash mobile money facilities affects vendors

The suspension of Cash- in, Cash-out and Cash-back facilities by the Reserve Bank of Zimbabwe (RBZ) on Monday has adversely affected vendors and informal traders. A number of vendors and informal traders, due to lack of cash, have been using Ecocash to order their wares and customers have been buying wares from vendors using the mobile facility – Ecocash. Bulawayo Vendors and Traders Association (BVTA) ran a snap survey on a number of vendors and informal traders to measure the impact of the ban of Ecocash to their businesses. “The suspension of these facilities has made things more difficult on top of the fact that cash is scarce,” said Madade Ndlovu an informal trader. Reports indicated that Econet confirmed that only people with Ecocash personal lines are still able to use Ecocash. Some informal traders reported that the money that was sent to their personal accounts has not reflected. This has stirred confusion countrywide because of the unclear directive by RBZ. “I failed to order tomatoes and potatoes because the service was not available,” said Simiselo Ncube. Most vendors yesterday seemed to be failing to transact with their customers due to intermittent network. Vending and Informal trading continues to be the greatest source of income to many households in Zimbabwe. The suspension of cash-in and cash-out facilities will then lead to the demise of many. However, some vendors and informal traders commended government for intervening and putting a stop to currency manipulators who are taking advantage of the Cash-in, Cash-out and cash-back to fleece innocent people by charging high premiums up to 50%. BVTA suggests that there is need for trust building and consensus from citizens and state. The season of Statutory Instruments interventions only will not enforce TRUST and CONFIDENCE and this monologue may not yield the desired results. As an intervention, government must think about Town Hall engagements with citizens to solicit for their recommendations to arrest economic challenges.

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