MTAs reject RBZ dispensation

Kudakwashe Mutandi

MONEY Transfer Agencies (MTAs), who are now regarded as Authorised Dealers with Limited Authority (ADLA), are resisting the US$100 000 collateral deposit that has been set by the Reserve Bank of Zimbabwe (RBZ) as a key condition to allow outward cash remittances, a development that might delay the implementation of the new dispensation.

The facility was meant to conveniently allow the public to send money beyond the country’s borders using MTAs.

With an estimated three million Zimbabweans living outside Zimbabwe, either working or learning, sending money to them via MTAs is practically impossible.

Locals have had to rely on the Visa and Master Card systems that are offered by banks.

Although Western Union and Money Gram have evolved to become dominant players on the local market, by the end of 2006 Zimbabwe had more than 15 ADLAs among them Fedex, POSB, Stanchart, NMB Bank, TransAfrik, Dollarway, CABS, Stanbic, ZIMPOST, I and F, Pacific, Banfords, Currency King (Kingdom), CBZ and Parlovan.

Last week, Western Union Zimbabwe franchise holder Mr Fred Mutanda said ADLA will refrain from using the facility as it was expensive and will eat into their revenue. They will continue to lobby regulatory authorities to have the requirement scrapped.

“As ADLAs, we will be refraining from using the service. Why are we being asked to pay collateral when we are actually helping someone outside the country to pay for school fees and medical expenses?

“In our case, we will be sending (money) from person to person; we have a licence to sell forex, why asked to pay US$100 000 (sic)?

“We do not want to penalise clients; besides, there will not be any returns.

“We tried to engage the Reserve Bank but they didn’t come back to us,” said Mr Mutanda.