adminConsumer Survey Zimbabwe 2011.
The nationally representative survey focuses on how individuals source their income and how they manage their finances, thus providing insight into attitudes and perceptions regarding financial products.
The survey shows that 40 percent of Zimbabweans are financially excluded (do not use either formal or informal financial products or services), while 22 percent rely on informal financial products/services.
Only 38 percent of Zimbabweans are formally served (of which 24 percent use bank products/services, and the remaining 14 percent use non-bank formal products/ services).
In terms of an urban/rural split, the survey shows that 47 percent of the urban population is presently banked, while a mere 12 percent of the rural population (where 65 percent of the total population resides) are banked.
From a regional perspective, Zimbabwe’s 24 percent banking penetration is up against South Africa’s 63 percent, Namibia’s 62 percent and Swaziland’s 44 percent.
Presenting the results of the survey last week, FinMark Trust chief executive officer Ms Maya Makanjee attributed the limited banking penetration to stringent requirements on the part of the banks themselves.
“Zimbabwe financial services sector’s requirements for opening an account are too stringent. For instance, there is the issue of demanding proof of residence, in which we noted that 77 percent of the population do not have,” she said.
“Reducing these requirements can help bring more people into the banking sector.”
An analysis of the survey reveals that in addition to the stringent requirements for opening a bank account, other factors that have contributed to the high levels of
financial exclusion include limited requisite infrastructure in the rural areas, low disposable incomes and a generally illiquid economy.
Reserve Bank of Zimbabwe Governor Dr Gideon Gono said they were actively working to boost financial inclusion in the country.
“Under international conventions we are obliged to encourage people to use the formal banking system — for instance, in the fight against money laundering,” he said.
“The RBZ has so far approved 18 banks to partner with the three mobile telecommunications providers to set up cellphone banking.
“We are also going to sit down with the Ministry of Finance to relax the know-your-client requirements, including reducing the age requirements to open a bank account from the current 18 years.”
Finance Minister Tendai Biti blasted local banks for “mental sclerosis”.
“The banking sector has performed fairly well of late. Therefore, I charge the Bankers’ Association of Zimbabwe for doing little to improve financial inclusion.”
Online Reporter