Mobile telecom providers play key role in financial inclusion — Professor Ncube

ZIMBABWE is one of the global leaders in facilitating mobile banking, a development that was driven by mobile telecommunication service providers and it has helped to entrench financial inclusion in the country, Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube has said.

Addressing delegates at the recent inaugural Annual Financial Inclusion conference in Victoria Falls this week, Prof Ncube applauded mobile telecommunication firms for spearheading the drive.

The conference which ended yesterday was held under the theme “Leveraging Innovative Technologies for Financial Inclusion and Sustainability: From Access to Usage.”

“Zimbabwe is one of the global leaders in mobile banking. When you look at some of the pioneers are Kenya with M-PESA , Somalia to an extent and Zimbabwe through NetOne and EcoCash. As Zimbabwe, we should maintain that lead,” noted Prof Ncube.

“The speed in uptake has to do with who was taking the lead. In countries where it was bank-led, mobile banking was always slow. In Zimbabwe it was led by telecommunication providers and in Kenya it was through SafariCom. “We move faster when the telecom companies or mobile network operators (MNOs) take the lead but they must be properly regulated. The provision of mobile banking is a critical step in the financial inclusion drive.”

Financial inclusion is defined as the availability and equality of opportunities to access financial services.

It refers to a process by which individuals and businesses can access appropriate, affordable, and timely financial products and services.

National financial inclusion increased to 88 percent in 2022 from 77 percent in 2014, meaning about 6,2 million adults out of a total of 7 million adult in Zimbabwe are now financially included.

In a speech read on his behalf during the ongoing inaugural Annual Financial Inclusion conference by the RBZ deputy governor Dr Jesimen Chipika, RBZ governor Dr John Mangudya said much work still needs to be done to ensure full access to telecommunications in rural communities to enhance access and financial services.

“Cognisant of the importance of mobile network operators (MNOs) in facilitating financial inclusion in the digital space, the Bank introduced bank and mobile money interoperability in 2020 through statutory instrument 180/2020 Accelerated instant payments.

“MNOs have been seen to have a growing impact in this space while new technologies, especially those driving digital finance, provide immense opportunities for connecting businesses across the world.

“However, Dr Mangudya said there is still work to be done to ensure full access to telecommunications in rural communities to enhance access and financial services. I call upon Potraz, mobile network operators, non-profit organisations and other stakeholders to partner in guaranteeing that such access is achieved.”

Prof Ncube added that in an era of rapid globalisation and technological advancements, the National Development Strategy 1 (NDS1) recognises the importance of Information and Communication Technologies (ICT) literacy, which refers to the ability to use ICT effectively and responsibly in various contexts.

As a result, digital literacy has been integrated into the national curriculum and ICT capacity development programmes implemented.

“This initiative will facilitate digital financial literacy which is critical in understanding and interacting with financial services providers on the digital platforms that have now become the norm in the financial sector.”-chronicle