Banking and financial experts in Zimbabwe have warned that the nation’s entrenched reliance on cash continues to stifle efforts to transition toward a fully digital economy, despite widespread mobile phone penetration and the availability of modern payment infrastructure. The concern was highlighted at the inaugural ZimSwitch Digital Connect Symposium held in Nyanga, where leading voices in the financial sector called for urgent reforms to accelerate digital adoption.
Mr. Amon Chitsva, Chief Policy Research and Anti-Money Laundering Compliance Officer at the Reserve Bank of Zimbabwe (RBZ), stressed that while Zimbabwe possesses the technological foundations to embrace digital payments, cultural and practical barriers have slowed progress. “The digital economy is not only about adopting technology but about resilience, collaboration, and innovation,” he said, urging stakeholders to tackle both systemic and behavioral challenges simultaneously.
Echoing this view, Mr. Irvine Masona, President of the Electronic Payment Association of Zimbabwe (Epaz), provided an in-depth analysis of the country’s digital payment ecosystem. He pointed out that, in stark contrast to global peers, Zimbabwe remains heavily dependent on cash. While countries like China and the United Kingdom process over 90 percent of their daily transactions digitally, Zimbabweans still rely on cash for the majority of their financial activities, even though mobile penetration exceeds 100 percent. FinScope survey data suggests that roughly 70 percent of Zimbabweans continue to conduct daily transactions in cash.
“Our volumes are going in the wrong direction,” Masona explained. “Most customers withdraw their salaries as cash and transact outside the digital ecosystem. This limits the potential of digital platforms. We have to ask ourselves: are we providing the same level of convenience that cash already offers? If someone deposits US$100 into their account, can they transact the full amount without losing value? Until we address these issues, digital adoption will remain low.”
Cash Dependency Slows Zimbabwe’s Leap Toward a Digital Economy
The experts identified convenience, cost, and trust as critical factors reinforcing cash usage. Digital transactions often incur fees or reduce the value of deposits due to fluctuating exchange rates, whereas cash provides immediate and predictable access. Masona emphasized that global economies have successfully leveraged digital payments to enhance efficiency and economic growth. 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.
“Seventy percent of new value over the next decade will come from digitally enabled economies,” Masona said, citing World Economic Forum research. “If Zimbabwe fails to capture this shift, the country risks falling behind its regional and global peers.” He stressed the importance of tailoring digital financial products to local realities rather than merely replicating foreign solutions. “A thriving digital economy must be built for our customers, not someone else,” he added.
Chitsva underscored that digitalisation is central to Zimbabwe’s economic stability and the RBZ has embedded digital transformation into the National Development Strategy. The central bank is collaborating with stakeholders, including ZimSwitch, to modernize the payments ecosystem. He noted several barriers to adoption, including uneven access to technology, limited digital literacy, cybersecurity risks, weak data protection, and the persistent cultural preference for cash. Transaction fees, he added, remain a major deterrent for ordinary citizens.
To overcome these hurdles, Chitsva advocated for a shared vision and strategic alignment among regulators, banks, fintechs, and other stakeholders. “Unlocking a bolder digital economy requires unwavering commitment from all parties,” he said. Masona added that digital platforms must address citizens’ everyday needs, including payments for transport, airtime, pensions, and healthcare. “Unless we deliver real value and build trust, digital adoption will remain low,” he warned.
The symposium also highlighted progress in infrastructure, mobile reach, and regulatory alignment, all of which position Zimbabwe to expand its digital economy. However, cash dominance continues to limit financial inclusion and innovation, undermining the country’s potential to fully participate in the global digital payments revolution.
Experts concluded that immediate action is required to enhance convenience, reduce costs, strengthen trust, and improve usability. Without decisive measures, Zimbabwe risks falling behind other nations that are rapidly digitizing their economies, leaving its citizens excluded from the efficiencies and economic opportunities that digital finance can provide.
In summary, while Zimbabwe has the foundational technology and regulatory frameworks to become a digital-first economy, persistent cash reliance, cultural habits, and transactional barriers must be addressed. Only through coordinated efforts by banks, regulators, fintechs, and government can the country achieve a fully integrated digital economy capable of driving financial inclusion, innovation, and long-term economic growth.
Source- Herald
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