The Sunday News
Uzile Mkwananzi, Sunday News Reporter
GONE are the days of enduring lengthy queues at banks or navigating through arduous processes to secure loans.
Nowadays, the transformative impact of micro-finance institutions and mobile money transfers resonates far and wide, bringing unprecedented convenience and empowerment to individuals nationwide. The seamless accessibility offered by these institutions transcends borders, facilitating effortless transactions on a global scale, through mobile banking apps.
This pivotal shift has liberated individuals from the constraints of traditional practices, enabling swift and efficient money transfers to and from relatives abroad, eliminating the need to endure hours-long queues for deposits or withdrawals.
In an interview with Sunday News Business, on the influence of money transfer agencies and micro-finance institutions, local economist and National University of Science and Technology (Nust) lecturer, Mr Stevenson Dhlamini, emphasised the profound force wielded by these institutions, underscoring their undeniable significance and far-reaching impact.
“The presence and impact of the money transfer agencies, such as Ecocash and Innbucks, is significant on the National Payment System. They enable the facilitation of diaspora remittances, which now constitute a significant source of foreign currency reserves in our country. Furthermore, these micro-finance institutions play a significant role in reducing poverty as they facilitate the flow of funds from family members in the diaspora to their needy families in Zimbabwe,” he said.
“Money transfer agencies have also opened up partnership opportunities with local banks and Fintech institutions. For example, EcoCash has partnered with international payment platforms like PayPal, to enable the receipt of remittances directly into mobile wallets. This has a positive impact on employment and economic growth. These partnerships also enhance the accessibility and convenience of remittance services, further contributing to the economy.”
Micro finance institutions’ contributions to small business owners and civil servants, can also be applauded, as these allow them to have access to loans that are quicker to access and to loans that have low interest rates,making the exercise less straining and hustle free.
Economic commentator and managing director at MoB Capital Private Limited, Mr Morris Mpala said microfinances have played a big role in Small- and Medium-Sized Enterprises (SMEs), as they have helped in alleviating financial burdens.
“Microfinances have come in handy for SMEs looking for short term small credit for their business and personal energies.
“The turnaround in loans approvals, less stringent conditions and the fact that at times it could be given in hard cash, offers convenience to customers.
“These have also spread into educational loans, developmental finance, agriculture related loans ,to the betterment of business and the economy at large due to competitive interests that exist on these loans,” said Mr Mpala.
“Mobile money transfers have brought convenience to an otherwise unbanked society. Considering the challenges in the banking sector, this was a very welcome development as it eased doing business in transacting savings, e-wallets offers, ease of payments, safe money keeping, easy to use across. Most payments are being done via mobile money and it has been the most favoured go to service across the country.”
