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Zimbabwe’s restrictions on mobile money transfers are a blow to financial inclusion

Zimbabwe’s restrictions on mobile money transfers are a blow to financial inclusion

MARCIA KWARAMBA, Scholar-in-Residence in the Social Responsibility and Sustainability Division, University of Colorado Boulder MOBILE financial services are, in most African countries, born out of crises. In 2011, Zimbabwe had gone through a volatile decade of economic crises – hyperinflation, currency instability and a collapse of the formal financial system. Consumers, mostly employed in the informal sector, had a widespread mistrust of the formal banking system. In came Econet, a major mobile operator, to launch a mobile money service called Ecocash. Taking advantage of the country’s high mobile penetration, the service had 2.3 million users within 18 months. Today, close…
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