Government has approved sweeping reforms aimed at reducing the cost of financial services and improving access to banking, following a Cabinet decision to streamline regulatory licences, permits and fees across the sector.
Speaking during the Post-Cabinet Briefing, Minister of Information, Publicity and Broadcasting Services, Soda Zhemu, said Cabinet had taken bold steps to address high costs in the financial sector.
“Cabinet approved the streamlining of duplicated and overlapping regulatory licences and permits, removed unnecessary levies and fees and lowered unjustifiably high levies and fees for the financial services sector,” he said.
The Minister said the measures are expected to bring relief to consumers and businesses.
“The removal of charges such as monthly fees for low-value accounts, transaction fees for small amounts, and cash deposit charges will enhance financial inclusion and reduce the cost of doing business,” said Minister Zhemu.
He added that the reform process remains ongoing.
“The reviewed licences, permits and fees will be subjected to further refinements and a comprehensive schedule will be duly gazetted,” he said.
Acting Minister of Finance, Economic Development and Investment Promotion, Felix Mhona, presented the proposals, which are part of broader efforts to improve efficiency and eliminate duplication within the financial services sector.
Among the major highlights is the removal of monthly maintenance fees for accounts with balances below US$100, as well as charges on transactions below US$5. Government has also scrapped cash deposit fees for both United States dollar and ZiG transactions.
Account opening charges have also been abolished, while cash withdrawal fees have been capped at a maximum of 2 percent for both US$ and ZiG.
Further relief will come through reduced fees in sub-sectors such as micro-finance institutions, insurance and pensions, mobile money platforms and fintech capital markets.
The reforms are expected to enhance financial inclusion, promote the use of formal banking channels and improve the ease of doing business in Zimbabwe.
