EcoCash, the dominant mobile money platform, announced today that it is now a regulatory requirement for each customer to have one Eco cash line . Econet now requests its users to choose which line to keep.
Econet Wireless Zimbabwe Limited is the largest mobile telecommunications, technology and digital solutions company in the country of Zimbabwe ,it launched its commercial operations in July 1998. Econet is by far the market leader in its industry with over 12.4 million connected customers.Over the past 20 years Econet has invested millions of US dollars in deploying the widest and most robust 2G, 3G and 4G networks in the country.
When it comes to monetary transaction, Econet has actively enabled Zimbabweans to transact using their phone via ecocash particularly in these covid 19 times where physical transaction of hard cash are to be avoided to hamper the spread of the virus, . However this service has not been for free as it has seen significant rises in rates of ” buying money”using Eco cash , this has meant increased charges whenever one either buys or sends money via Eco cash .
This comes as a massive disadvantages for money changers who have been heavily depending on more than one line to carry out transactions on the black market . In addition to money changers , payments of massive bills via liquid cash have been detrimentally impacted by this . This is due to a limited amount of money to be done by the customer per every 24 hours .
As it is , Econet transactions had been restricted to 5 000 RTGS Dollars a day ,as directed by the Reserve Bank of Zimbabwe . limitation to one line per customer therefore means those who wish to pay for transactions above 5000 a day using Eco cash will not be able to do so. The daily individual limit of $5 000 for mobile money transactions may cover the vast majority of ordinary payments by citizens, but also help to contain illegal dealings that fuel black market foreign currency exchange rates and consequently push up prices of goods and services.
in addition to the inter bank rate which is extremely lower than that of the black market , limiting Eco cash lines to one per customer will be even harder to buy the US dollar with a limited float .