Published: 13 May 2025

Zimbabwe is quickly becoming a hub for scalable financial technology (fintech) solutions, with local financial institutions driving the transformation. By harnessing technology, these institutions are bridging financial inclusion gaps and revolutionizing service delivery across the country. This was a key highlight at the recently concluded Strategy Execution Advisory Talks (Seat) Summit 2025, held in Victoria Falls, under the theme: "Harnessing and Optimising Technology for Business Growth and Success."

During his address at the summit, Mr. Agrippa Mugwagwa, Managing Director of Xarani, a fintech subsidiary of FBC Holdings, stressed the importance of fintech ecosystems in overcoming the challenges of financial inclusion. He noted that banks alone are unable to fill the inclusion gap, primarily due to the high risks and costs involved. Instead, he emphasized the critical role of scalable fintech solutions that are grounded in robust infrastructure and informed by successful models already flourishing across the African continent.

"Xarani Fintech is pioneering AI-driven solutions to reduce costs and expand access. Our AI-powered Know Your Customer (KYC) systems have reduced onboarding costs by 70 percent - a significant step in reaching rural populations and informal workers," Mr. Mugwagwa explained. He further highlighted the company's efforts in developing interoperable platforms and establishing partnerships with telecommunications companies, banks like Steward Bank and NMB, and government-backed digital ID systems.

Zimbabwe's fintech ecosystem, Mr. Mugwagwa noted, thrives on collaboration, pointing to mobile money agents, USSD banking, and voice-enabled interfaces in local languages as key enablers of financial inclusion. He drew comparisons with Kenya's M-Pesa, a globally recognized success story driven by mobile penetration, regulatory flexibility, and public trust. "With 650 million smartphone users in Africa and US$500 billion in annual mobile money transactions, the potential is immense," he said.

In another session, Mr. Samuel Matsekete, Group CEO of Old Mutual Zimbabwe and Head of Banking Portfolio for the Rest of Africa, shared insights into how Old Mutual has embraced fintech innovation. The company launched its O'mari mobile money wallet in 2023, positioning itself as a leader in the sector. "The platform integrates USD and ZWG wallets, offering insurance, nano-loans, and bill payments - all accessible via both feature phones and smartphones. This innovation comes as 83 percent of adults now use formal financial services, up from 69 percent in 2014, with women's inclusion increasing from 68 percent to 83 percent," Mr. Matsekete said.

Behind the scenes, Old Mutual has implemented Robotic Process Automation (RPA), significantly reducing manual workloads by 92 percent, while also cutting operational costs and errors. The company has also invested in AI and data analytics, enabling hyper-personalized services, from credit assessments to funeral plan management.

Both Mr. Mugwagwa and Mr. Matsekete underscored the importance of partnerships in driving fintech growth. Old Mutual's O'mari integrates with ZimSwitch, Zimbabwe's national payment switch, while FBC collaborates with telecom giants like Econet to expand agent networks. Regulatory sandboxes, cryptocurrency policies (such as the recognition of ZiG), and open banking mandates were highlighted as critical enablers of the fintech ecosystem's continued growth.

Despite traditional banking penetration remaining low, with savings accounting for just three percent of GDP and insurance penetration at a mere 3.6 percent, Zimbabwe's fintech innovators are increasingly relying on digital tools to reach the unbanked and underserved. As fintech solutions gain momentum, the future of financial services in Zimbabwe looks poised for a significant transformation, offering a more inclusive, efficient, and accessible system for all.
- zimpapers

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