Wednesday
October 10
2018

Zimbabwe is hiking mobile money taxes to plug its fiscal deficit, but it could backfire

By Tawanda Karombo

Cash-strapped Zimbabwe has turned to mobile money for additional treasury funding with a hike in taxes for mobile wallets and electronic payment transactions.

Zimbabwean business owners and consumers in the country say the new fiscal measure will push up costs in an economy already battling rising inflation and currency shortages.

In a country with a history of cash shortages, multiple currencies and hyperinflation, mobile money had become a key payment alternative. Cash is hardly ever accessible in Zimbabwe as banks frequently run out of monetary notes, leaving mobile money and bank cards as the only transaction options.

Photo courtesy of Erik (HASH) Hersman.

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

Categories
Finance
Tags
cashless, digital finance, digital payments, fintech, mobile money, regulations, taxes