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Harare Bureau
Econet Wireless Zimbabwe through its mobile money service Ecocash has launched Ecocash Savings Club, a mobile product aimed at supporting savings groups across the country.
In Zimbabwe, informal group savings and investment clubs are common and they typically consist of a group of members who each contribute regularly into a cash pool that members borrow from on a rotating basis.
While the practice is widespread, savings clubs face security risks in handling cash and difficulties in tracking contributions and withdrawals from members.
In a statement, Econet’s chief executive officer Douglas Mboweni said the product aims to forward Econet’s drive to broaden financial inclusion in the country.
“We seek to create economies of scale that build up savings deposits for the nation as well as demonstrate through their savings patterns the credit worthiness of our customers.
“We’re committed to continue on the path of dynamic innovation, to bring world-class financial services in the context of our Zimbabwean market,” he said.
Under the product, anyone registered on EcoCash can set up a group mobile wallet for free. Savings clubs earn interest on all pooled funds starting from $1 after every 30 days.
Mboweni said the product has been on a test run for the past six months.
Head of Ecocash Business Natalie Jabangwe-Morris said group savings culture for specific purposes or asset investment is a common phenomenon in Zimbabwe, but the target segment is largely unrecognised and under-appreciated
“EcoCash Savings Club is intended to reward this diligent savings behaviour, as well as become an enabler for access to other services, such as mobile credit. It also offers an opportunity to extend EcoCash mobile money agency businesses to groups of people that are credit worthy, but have been long marginalised,” she said.
Londile Moyo