Zim witnesses surge in mobile penetration

The country has seen an increase in mobile penetration that has led to the reduction of financial inequality between urban and rural areas as well as between men and women, according to the Ministry of Information Communication and Technology (ICT).

According to ICT Minister Tatenda Mavetera, the country has experienced an increase in mobile money use and internet banking due to Government policy and it has led to more people being banked in the country.

“The increase in mobile phones has resulted in the country being able to bank more citizens in the past 10 years more than any other period before,” she said.

According to the Reserve Bank of Zimbabwe (RBZ), uptake of banking products increased from 33 percent (men) and 27 percent (women) in 2014, to 50 percent (men) and 43 percent (women) respectively, while uptake of other non-bank formal financial products remained relatively stable over the review period at 40 percent for women and 34 percent for men.

“The financial exclusion gap for women has reduced from 24 percent in 2014 to 12 percent in 2022 largely driven by increased uptake of both banking and non-bank financial products.

“Mobile money uptake among women improved from 43 percent in 2014, to 61 percent in 2022, while mobile money penetration among the men improved from 48 percent to 66 percent,” the RBZ said.

Said Mavetera; “The technology of mobile money has acted as a leveler in the income distribution spectrum, reducing the gap between the urban and rural populations.

“Previously, rural communities faced challenges in accessing financial services, leading to economic disparities. The convenience of mobile money has bridged this gap, enabling rural households to engage in formal financial activities.”-ebusinessweekly