As we all know, Zimbabwe has never been more reliant on its children living outside the country. From January to October 2023, Zimbabwe received $1.47bn in remittances, an 8% increase over 2022.
These remittances are now one of the biggest sources of foreign currency in the country. In 2022, they represented 14% of total forex inflows and that has only increased.
That’s all impressive but there is a lot of money coming in through unofficial channels that is not captured in the impressive figures we talked about. That’s especially true when it comes to remittances from South Africa, from which 40% of total remittances come from.
Why do people still trust bus drivers, runners and malaichas to carry envelopes full of cash across the border when there are multiple organisations offering hassle-free electronic options? The cost – that’s the reason.
The International Organization for Migration reports that the average cost of sending remittances is 9.2 percent. Econet says it can get as high as 15% for the sender and an additional 3% for the recipient to cash out. That’s bonkers.
So, with that picture painted, I think we can all appreciate Econet’s move to offer free transfers to the country. Econet says individuals and companies in the United Kingdom and South Africa can send money into Zimbabwe free of charge and the recipients also cash out for free.
No more giving up 10-20% of your money in transfer fees. This easily becomes the cheapest way to send money back home, why trust the truck driver at this point. I imagine Econet will have to charge again at some point in the future and so we need to take advantage of this while stocks last.
Zimbabwe declared a national disaster over the drought the country is facing and Econet says this move is meant to help Zimbabweans weather the acute challenges caused by the drought.
I imagine InnBucks’ Send Money Home Free promotion which offers free transfers too might have influenced this generous gesture as well. But who cares why we are getting this sweet deal?
Econet opens first free remittance corridors to Zimbabwe
Zimbabwe’s largest telecommunications and technology company, Econet Wireless, has achieved an Africa first by opening two free remittance corridors into the country, completely eliminating the cost to both sender and receiver.
Econet has partnered with its sister company, Sasai Money Transfer, to enable individuals and companies in the United Kingdom and South Africa to send money into Zimbabwe free of charge, starting today (May 2, 2024). The receiver also cashes out of their EcoCash wallet for free.
International remittances attract a charge of up to 15% for the sender, while the receiver is charged 3% when cashing-out.
Econet Wireless Zimbabwe CEO Dr Douglas Mboweni explained that the latest decision is aimed at helping Zimbabweans to weather the acute challenges caused by the drought.
The country recently declared a national disaster over a drought caused by the climate event known as El Niño, which has left more than 2.7 million people in need of food aid.
“We hope Zimbabweans in the Diaspora will use the savings to send more money home to their families,” Dr Mboweni said.
“The majority of remittances to Zimbabwe are conducted through these two main corridors (the UK and South Africa). We don’t have to pay any third parties on those corridors, because we rely on a sister company in the group, which agreed to help out,” he said.
The Econet CEO said he hopes the move by Econet will encourage other companies facilitating remittances into Zimbabwe to reduce their fees, noting that it was time that remittances into Africa in general were brought down “to assist with the continent’s economic development agenda”.
Dr Mboweni added that the initiative was in support of government efforts to increase diaspora remittances coming into the country through formal channels.
Econet’s extensive EcoCash agent network ensures that even people in remote rural areas have access to low-cost financial services, reducing the need for recipients to travel long distances to collect cash.
Econet said Remittance transfers will be facilitated through the EcoCash US dollar wallet, which is accessible by dialling *153# on an EcoCash registered Econet line.
Senders in the UK and South Africa can access Sasai Money Transfer by downloading the Sasai Money Transfer App on the Google Play Store and on the App Store.
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35 comments
Most money transfer agents hide a massive fee in the skewed exchange rate (WorldRemit is one such example). I hope EcoCash and Sasai will be transparent in this regard.
This comment led me down a rabbit you are right the exchange rate matters visualised here https://twitter.com/harveylb_/status/1788632663378493490
These promotions are only what they are, promotions, and they have a time limit. The trusted Malawi ha, bus driver and runner who was there before the promotion and is still there during the promotion and will always be there after the promotion. Trying to disrupt an already existing network will not succeed. With government seeming happy with remittances rather than making policies which stimulate the creation of employment for citizens, the traditional ways of sending physical money will keep growing!
Welcome back Mr sengere where have you been … Did u hear starlink applied for a licence kkkk
It’s not Sengere, it’s a relative of J.K in Winky D’s song with Saintfloew.
Econet has a long term plan=milking its clients
Urikushandisa Econet. Us in a whole
Cde where have you been. Your absence means techzim had almost gone on a sabbatical.
Can I connect my virtual master card of econet to my Paypal account… Please help Mr sengere
Yoz truly Mr Sengere u just disappear without a trace musadaro we r poorer without u
Chill the hell out punk
Mr Sengere welcome back, asi manga matora paternity leave lol. Good to have you back
Mr Sengere you are a real deal.
Let’s hope Masiwa is not preparing for campaigns.
Because I don’t see him winning even if he offers 0% tariffs.
Zanu Pf Chiwororo
Data no Data
#Real comrade deserve to read latest news
Jahmael ke @Kgosi De_Ricch
#Socialbrite 4_ed
Courtesy of Kgosi De_Ricch News Foundation
Go Bek to pindula & play with fugu, chibaby & khan yo friends
I am here to support you man….preach the message we must be patriotic as Zimbabweans ✊🏽🇿🇼
Oh no, it’s the peanut gallery!!!!
respect us Zanu pf loyalists we rule the country
This one has some semblance of grey matter. Good for you.
Representing the revolutionary party here and mandated to defend our sovereignty in any area i will also be here
I have just downloaded the app looks like nothing is for free there and the limit is USD255
Terms and conditions apply, of course….nothing is for free in Africa
Anyone anewo ma settings e http injector ndipeiwo pliz haaa data isdhulile hama kkkkkk…0775058003 app me please
Follow the Techlink ZW channel on WhatsApp: https://whatsapp.com/channel/0029VaaFjGBEKyZPSovLlS3D
Please follow my page for daily tech news
Tanga wasenda zvinhu zvisvinu iwe
We can’t follow rubbish 1 update per month
What is http injector inoshandei nhai kkkk
It allows you to access free internet using settings dze 3conet or netone
Muchativharisira, chiiko nemi
Can you please whatsapp me on 0775058003. Please🙏
I am looking forward to some more latest news from Techzim, hopefully by the end of this week ……
Is it true that dstv sourh africa accounts are being blocked
what is a “dstv sourh africa account”?
Spelling mistake I mean dstv south africa account
Forgive my ignorance. Is someone still maintaining this website? I see the footer still says 2023.
puddon me but this “latest” tech news seems to be very late , nothing new here for 1 week? are you techzim guys ok,, or have you moved onto greener pastures selling tecno and itel phones?
this is now 9 days old and no more new news? have you been arrested and locked up for forex dealing or something ?!