The Zimbabwean Government has moved to strengthen the country’s mobile money services regulations through the promulgation of Statutory Instrument 80 of 2020.
The new SI also enforces interoperability between the three mobile money platforms of the respective mobile telecommunications service providers.
Econet Wireless Zimbabwe, NetOne and Telecel Zimbabwe are the country’s only mobile networks.
But the their services have not been interoperable largely due to resistance on the part of the players, even though the State issued an ultimatum on mobile money interoperability in 2018.
To ensure that the mobile networks comply, SI-80 of 2020 requires their mobile money networks to be registered on the National Payment System (NPS).
Reads part of the Statutory Instrument:
“It shall be mandatory for every money transmission provider and mobile banking provider shall be connected to a national payment switch, as shall be directed by written notice by the Reserve Bank from time to time that enables interoperability of payments systems and services. (2) For purposes of connecting to the national payment switch in terms of subsection (1) every money transmission provider and mobile banking provider shall install, deploy or commission such infrastructure and connection protocols, credentials and documentation necessary to enable integration with any recognised payment system in terms of the National Payment System Act [Chapter 24:23]. (3) Every money transmission provider and mobile banking provider shall open and maintain a bank account that is designated exclusively for mobile banking services. (4) Every money transmission provider and mobile banking provider shall ensure that no money is transmitted or is retained on the payment system without a corresponding correct bank balance.”
Observers say the move is key in enhancing financial inclusion.
“The gazetting of this Statutory Instrument is a positive development in light of the need to encourage interoperability among financial players in the country including mobile money platforms. In addition the SI strengthens and facilitates Government efforts towards financial inclusion where all mobile money operators and money payment systems interconnect,” said one commentator.
“As the country moves towards becoming an Upper middle-income society by 2030, the Ministry of ICT, Postal and Courier Services proposes and anticipates the country to adopt a completely new approach of exploiting the potential of ICTs by developing appropriate and cost-effective ICT applications and solutions which can improve the country’s productivity and competitiveness.”