The Reserve Bank of Zimbabwe (RBZ) has implemented stringent measures against mobile network operators (MNOs) in response to the rising incidence of fraud and unregulated lending practices. RBZ Governor John Mushayavanhu highlighted the severity of the issue, noting that authorities have uncovered widespread abuse of mobile money platforms. In a recent case in Chitungwiza, individuals were found in possession of up to 50 SIM cards, each linked to a mobile wallet.
According to Mushayavanhu, many of these accounts were fraudulently registered, including those under the names of deceased individuals, which complicates the tracing of financial crimes. “When law enforcement tries to track perpetrators, they hit a dead end because the account belongs to a deceased person, “he explained. The RBZ has instructed all MNOs to verify and clean up their customer databases in collaboration with the Registrar General’s Office, with a deadline set for the end of June. Any accounts that cannot be linked to valid identification must be removed.
The RBZ also criticized MNOs for selectively applying financial regulations, particularly regarding transaction charges. Mushayavanhu emphasized that rules requiring zero charges on small transactions must apply to mobile platforms as well. “They want to be banks when it suits them but not when it doesn’t, “he commented. The governor urged the public to report violations, warning that non-compliant operators could face the withdrawal of their licenses.
Additionally, the RBZ has expressed concern over small, instant loans offered via mobile platforms, often accessed through USSD codes. Mushayavanhu termed these “nano loans “as a form of unregulated money creation. “Imagine an operator with millions of subscribers giving each US$10; that’s money being created without backing, “he. The RBZ has now ordered that such lending must be underwritten by commercial banks and reflected on their balance sheets, with compliance subject to audit.
On broader monetary policy, Mushayavanhu indicated a shift in Zimbabwe’s approach to adopting a single currency, now focusing on meeting key economic conditions rather than a specific timeline. These measures reflect the authorities’growing efforts to tighten oversight of the financial sector as Zimbabwe navigates ongoing currency reforms and seeks to restore confidence in its monetary system.
