Thursday
October 31
2019

How to Understand Why Zimbabwe Is Bringing Back the Zim Dollar and the Limits of Mobile Money

By Tawanda Karombo

Zimbabwe is trying to bring back its “Zimdollar” currency and not for the first time. Ten years since the troubled national currency was essentially destroyed by years of hyperinflation, central bank officials and a few strategic government insiders have been hinting or openly discussing the need for its return.

This week the government moved a step ahead in its currency reforms when the central bank announced new notes will be introduced in two weeks to fight transactional challenges emanating from over-reliance on digital and mobile money in light of exacerbated by cash shortages.

Mobile money, an area in which Econet spin-off, EcoCash is the dominant player, has often been helpful for ordinary Zimbabweans in alleviating the cash shortages they have been experiencing.

Photo courtesy of Kay McGowan / USAID.

Source: Quartz Africa (link opens in a new window)

Categories
Finance
Tags
cashless, digital finance, emerging markets, financial services, fintech, mobile money