This archive report was first published on 27 June 2020.
On June 27, 2020, the Zimbabwe government suspended mobile money transactions and trading at the Zimbabwe Stock Exchange, citing allegations of criminal activity and fiscal sabotage.
The suspension is aimed at investigating and arresting offenders, according to a press statement from Nick Mangwana, the country's Secretary for Information.
Mobile money platforms such as Ecocash, Telecash, OneMoney, and Mycash are accused of running parallel market exchange rates at the Zimbabwe Stock Exchange, undermining the country's fiscal policy.
Players like Ecocash are also alleged to be fueling black market foreign exchange rates, causing price hikes. Mangwana claims that Ecocash works with merchants and runners who buy 'hundreds of millions of dollars per day.'
The government has listed several illicit activities by mobile money platforms, including:
- Using bulk airtime sales at discounted prices cross-rated to phantom USD exchange rates, distorting the Zimbabwe market
- Stealing money from subscribers through un-auditable mobile phone lines
- Illegal externalization of foreign currency through transfer mispricing
- Fraudulently creating and issuing non-auditable accounts to agents
- Driving illicit trade of notes and coins, creating artificial shortages
The government will announce measures to protect the public from collateral damage arising from the suspension.
Ecocash, a mobile money giant, has responded by stating that the directive to ban mobile money can only come from the Reserve Bank of Zimbabwe, the regulator. The company has urged customers to stay calm and wait for adequate notice.
