daniel chigunwe
Business Writer
Econet Wireless Zimbabwe, the leading telecoms and tech company in the country, is extending its well-received move of free money transfers from the UK and South Africa. They plan to keep it this way for the near future.
CEO, Dr. Douglas Mboweni, hinted at an even bigger plan. He revealed they’re exploring ways to bring this free remittance service to even more regions, including the US, Europe, and the Middle East.
“The initiative will continue for the foreseeable future. We are now actually working on expanding the free remittances to Zimbabwe to other source markets, such as the US, Europe and Middle East, so that Zimbabweans with friends and family in those regions can also benefit from our offer,” Dr Mboweni said.
“However, our group currently does not have licenses that allow us to extend the service to all markets at this time. But we are busy looking at how we can do that,“ he said.
Last week Econet made headlines across Africa by launching the first-ever free remittance corridors for sending money from the UK and South Africa to Zimbabwe. This innovative move eliminates all fees for both the sender and the receiver.
The initiative is made possible by Econet’s partnership with its sister company, Sasai Money Transfer. Now, individuals and businesses in the UK and South Africa can send money directly to EcoCash wallets in Zimbabwe, with recipients able to withdraw the funds in US dollars – all completely free of charge.
Dr Mboweni said the market reaction to the initiative had been very positive, adding that he expected many people to start channelling remittances via Ecocash.
He said there were virtually no minimum limits to how little one can send at any given time. “If someone from the UK wants to send $5 to someone in Zimbabwe, it’s ok with us. We can handle small or large amounts and it’s done in an instant.”
“We believe EcoCash’s extensive network, already in use for domestic USD transfers around the country, and in particular in the rural areas, will be key in providing convenience to people in remote villages and districts to access their funds,” Dr Mboweni said.
Last week Dr Mboweni explained that the decision to offer free remittances had been motivated by the desire to help Zimbabweans weather the challenges caused by drought.
The country recently declared a national disaster over a drought caused by the climate event known as El Niño, which has left more than 2.7 million people in need of food aid.
Some analysts and experts have urged the government to take advantage of the intermediation role of Ecocash to allow ZiG cash-in and cash-out, thereby building confidence in the new currency.
Bongani Ndlovu