Published: 2 hours ago

Banking experts have warned that Zimbabwe's heavy reliance on cash is undermining the country's push towards a digital economy, despite widespread mobile penetration and modern payment infrastructure.

Speaking at the inaugural ZimSwitch Digital Connect Symposium in Nyanga, Reserve Bank of Zimbabwe (RBZ) chief policy research and anti-money laundering compliance officer, Amon Chitsva, said digitalisation was critical to Zimbabwe's financial stability but continued cash dependence was a major setback.

"Digitalisation is not only about adopting technology but about resilience, collaboration and innovation," Chitsva said. He noted that transaction fees, uneven access to technology, limited digital literacy, cybersecurity risks, weak data protection, and a cultural preference for cash were among the barriers stalling digital uptake.

His sentiments were echoed by Electronic Payment Association of Zimbabwe (EPAZ) president Irvine Masona, who highlighted that 70 percent of Zimbabweans still rely on cash for daily transactions, according to a FinScope survey. This is despite mobile penetration exceeding 100 percent.

"Our volumes are going in the wrong direction," Masona said. "Customers withdraw their salaries as cash, then transact outside the digital ecosystem, limiting the potential of digital platforms."

He questioned whether the digital ecosystem offered the same convenience and trust as cash:
"If someone puts US$100 into their account, can they still transact US$100, or do they lose value immediately? Unless we fix that, adoption will remain low."

Masona compared Zimbabwe's position with global peers, where digital payments dominate daily life. In China, contactless and mobile payments account for the bulk of transactions, while in the UK and South Africa, more than 90 percent of payments are digital.

"Globally, 70 percent of new value over the next decade will come from digitally enabled economies," he said, citing World Economic Forum research. "If we fail to capture that, Zimbabwe risks falling behind."

Both speakers urged banks and fintech companies to design digital products tailored to Zimbabwean realities rather than copying foreign models. Masona emphasised the need to integrate everyday services such as transport, airtime, pensions and healthcare into payment platforms.

Chitsva assured that the RBZ was committed to providing supportive regulation that encourages innovation while safeguarding financial stability. "To unlock a bold digital economy requires a shared vision, strategic alignment and unwavering commitment from all stakeholders," he said.

The symposium highlighted both progress and persistent challenges: Zimbabwe has the infrastructure, mobile reach and regulatory frameworks to expand digital adoption, yet cash dominance remains entrenched. Experts warned that without urgent reforms to reduce fees, improve convenience and build trust, Zimbabwe risks lagging behind regional and global peers in the digital payments revolution.
- The Herald

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