Tapiwanashe Mangwiro
Banking experts believe that Zimbabwe’s heavy reliance on cash, despite widespread, deep mobile penetration and modern payment infrastructure, is a hindrance to the country’s goal of a predominantly digital economy
This was said by Reserve Bank of Zimbabwe chief policy research and anti-money laundering compliance officer Mr Amon Chitsva at the ongoing inaugural ZimSwitch Digital Connect Symposium in Nyanga.
His sentiments were echoed by Mr Irvine Masona, the president of the Electronic Payment Association of Zimbabwe (EPAZ), who also provided a detailed assessment of the nation’s digital payment landscape and the hurdles slowing digital adoption.
Mr Masona noted that while countries such as China and the United Kingdom had more than 90 percent of their daily transactions conducted digitally, Zimbabwe remains heavily cash-dependent.
This is also despite mobile penetration exceeding 100 percent.
A FinScope survey indicates that 70 percent of Zimbabwe’s citizens still rely on cash for daily transactions.
“Our volumes are going in the wrong direction,” Mr Masona said.
“Customers withdraw their salaries as cash, then transact outside the digital ecosystem, limiting the potential of digital platforms.”
“Are we providing the right level of convenience cash already offered?” the EPAZ president asked.
“If someone puts US$100 into their account, can they still transact US$100, or do they lose value immediately? Unless we fix that, adoption will remain low.”
He highlighted that convenience, cost and trust are key factors driving cash use. Digital transactions can incur fees and sometimes reduce the value of deposits, while cash offers immediate, predictable access.
Mr Masona compared Zimbabwe’s adoption with global peers. In China, contactless and mobile payments dominate daily life, in the UK, 93 percent of transactions are digital, and in South Africa, 91 percent of payments are digital, prompting some retailers to phase out cash entirely.
“Globally, 70 percent of new value over the next decade will come from digitally enabled economies,” he said, citing World Economic Forum research.
“If we fail to capture that, Zimbabwe risks falling behind.”
He also urged banks and fintechs to design products that matched Zimbabwean realities rather than copying foreign templates. Mr Musona said the thriving digital economy must be built for customers, not for someone else.
Mr Chitsva told the symposium that digitalisation is central to Zimbabwe’s economic and financial stability. The Reserve Bank has incorporated digital transformation into the National Development Strategy and works with stakeholders, including ZimSwitch, to modernise the payments ecosystem.
“The digital economy is not only about adopting technology but about resilience, collaboration and innovation,” Mr Chitsva said.
He identified several barriers: uneven access to technology, limited digital literacy, cybersecurity risks, weak data protection, and ongoing cultural preference for cash.
Transaction fees were also a disincentive, according to the regulator. To unlock a bolder digital economy, he said, “it requires a shared vision, strategic alignment and unwavering commitment from all stakeholders”.
The central bank intends to provide appropriate regulation that encourages innovation while maintaining financial stability. Transaction fees, he noted, remain a major disincentive for citizens. Both speakers emphasised the need for cooperation between regulators, banks and fintechs.
Mr Masona highlighted the importance of creating digital platforms that meet citizens’ daily needs, including transport payments, airtime, pensions, and healthcare services.
“Unless we deliver real value and build trust, digital adoption will remain low,” he said.
Mr Chitsva added that achieving a bold digital economy requires shared vision, strategic alignment and unwavering commitment from all stakeholders.
The Reserve Bank plans to continue supporting infrastructure, interoperability and consumer protection.
The symposium illustrates both progress and challenges. Zimbabwe has the infrastructure, mobile reach and regulatory alignment to grow its digital economy. Yet cash dominance persists, and low adoption limits the potential for financial inclusion and innovation.
Industry experts warn that without immediate action to address fees, trust and usability, Zimbabwe risks lagging behind regional and global peers in the digital payments revolution.
