by DANAI MWARUMBWA
HARARE – MOBILE money transactions in Zimbabwe have grown by over 20 percent to $575 million over the past three months.
The telecommunications regulator attributed the growth to the public embracing this form of payment in the face of cash shortages in the Southern African country.
The Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) stated the figure had in the fourth quarter grown from $477 million recorded in the third quarter.
It said the growth in the value of transactions could be attributed to a number of factors such as the general increase in the cost of goods and services as well as the growth in the number of users and use cases.
“Mobile money has become an important channel for effecting Person to Business (P2B) transactions,” POTRAZ stated.
POTRAZ projects mobile money transaction to grow further and play a key role of bridging the financial divide.
“Volumes of mobile money payments are expected to maintain an upward trend due to the significant increase in the number of financial services offered on mobile money platforms,” the regulator stated.
Ecocash is the leading player in the sector with a market share of more than 93 percent. It has over 6,7 million mobile money subscribers to its EcoCash offering.
Government-owned NetOne 428 500 customers on its OneMoney, representing 27,8 percent market share.
Telecel has about 54 400 subscribers on its Telecash offering, a 0,8 percent share of the market.
The cash shortages in Zimbabwe mirror the economic problems suffered by the country in recent years.
– CAJ News