As someone who’s been knee-deep in Zimbabwe’s tech scene for years, I’ve seen my fair share of innovations come and go. But Starlink? I’m sure those who are avid readers of Techzim will forgive me as this satellite internet service has been making waves like nothing else. Sure their launch in Zimbabwe can’t be chronicled as a huge event, but their responsiveness to local market conditions when it comes to plans/packages is just impressive.
However, in our operation helping hundreds of Zimbabweans get their hands on those sleek Starlink dishes, I’ve noticed a pattern emerging. The biggest hurdle for Starlink’s success in Zimbabwe won’t be competition from the likes of Econet or their sister company Liquid – it’ll be our complex, often frustrating payment landscape.
The Payment Puzzle: A Uniquely Zimbabwean Challenge
Let’s face it, folks – payments in Zimbabwe are about as straightforward as navigating Harare’s CBD during rush hour. Now if you know how to dodge a kombi or a mushikashika, that’s no guarantee that you can figure out how to make payments locally. If you’re coming from the diaspora and haven’t been here for a while I definitely encourage you to get a 101 Course on “How To Do Money In Zimbabwe”.
We’ve got a financial ecosystem that would make even the most seasoned fintech expert scratch their head. Here’s the deal:
1. The Unbanked Majority: A significant portion of Zimbabweans don’t have bank accounts. The banks try, but when you’re earning about US$1 a day what incentive is there to put that in the hands of our predatory financial institutions? There have been multiple times when we’ve assisted people making payments to Starlink and they’ve had to borrow their niece or nephew’s bank card just to make the payment.
2. The Visa/Mastercard Conundrum: Those who do bank often need to jump through hoops and loops just to get a Visa or Mastercard attached to their account. KYC processes that are just short of getting a letter from your ancestors in order for them to either open a bank account or have a Debit card that isn’t only ZimSwitch enabled but also Visa/Mastercard compliant. It’s like trying to eat sadza and bones without salt – technically possible, but not easy.
3. Prepaid Card Chaos: Prepaid cards from banks like BancABC, FBC and Steward Bank are options, but they’re about as reliable as ZESA during a thunderstorm. I’ve lost count of the number of frustrated tweets I’ve seen about failed Starlink payments. Just recently we lost over US$70 in withdrawal charges by funding one card, trying to purchase a Starlink kit, failing, us withdrawing and depositing into another bank account. Did this 3 times and believe me the pocket is crying.
4. Virtual Card Nightmares: EcoCash Mastercard and O’mari Visa offer virtual card numbers, which should be a godsend. But in practice? They’re about as useful as a chocolate teapot when it comes to Starlink payments.
The Reseller Opportunity: A Double-Edged Sword
This payment predicament creates a golden opportunity for local Starlink authorised resellers. They can swoop in, take direct payments from clients, and then they settle locally to Starlink Zimbabwe’s local Stanbic account (No I don’t think we’ll be able to pay in ZiG anytime soon). But here’s the rub – it’s a double-edged sword.
On one hand, resellers could make Starlink more accessible to the average Zimbabwean. When a payment is needed to be made to Starlink one could easily go into an office of a Reseller, hand over that cash and seconds later their account will be credited.
On the other hand, resellers could inflate prices in trying to survive the Zimbabwean economy, creating a barrier to the very accessibility Starlink promises. It’s a delicate balance, and one that needs careful navigation.
The Urgent Need for Local Payment Solutions
Starlink needs to find a local payment processor, and they need to find one like yesterday. PayNow, ZimSwitch, or even DPO need to step up to the plate. Without a reliable local payment option, Starlink risks becoming the internet equivalent of a fancy car with no fuel – great in theory, useless in practice.
I’ve seen firsthand how this payment issue is holding back Starlink’s potential in Zimbabwe. During a recent call in helping someone migrate their account from a roaming package to a local subscription, my client spent more time trying to process the payment than it took to set up the entire system. It’s a frustrating bottleneck in an otherwise smooth process.
The Roaming Loophole: A Temporary Fix
Here’s an interesting twist – thousands of savvy Zimbabweans who bought their Starlink devices while roaming from Zambia or Malawi were finding it easier to pay their monthly subscriptions to Starlink in these foreign countries whilst using local Zimbabwean bank cards. It’s a clever workaround, but not only does one need to pay US$100/month, it shouldn’t be necessary.
Those who have been having kits from outside Zimbabwe will attest to this, local cards worked flawlessly when paying their outside subs to Starlink. This is mainly due to Zambia and Malawi having a local payment processor, that understands payments in these markets, and can handle such easily.
It is a stark contrast to the payment struggles we’ve witnessed with direct Zimbabwe purchases.
The Bigger Picture: What This Means for Zimbabwe’s Digital Future
This payment predicament isn’t just a Starlink problem – it’s symptomatic of a larger issue in Zimbabwe’s digital landscape. As we strive to become a tech-savvy nation, our payment infrastructure is definitely lagging behind.
I’ve seen the transformative power of high-speed internet in rural communities. A school in Chimanimani went from having no internet to hosting virtual international exchanges, all thanks to Starlink. But for every success story, there are dozens of potential users held back by payment hurdles.
Looking Ahead: Potential Solutions
So, what’s the way forward? Here are a few possibilities:
1. Local Partnership: Starlink could partner with a local telecom or bank to facilitate payments. Imagine if you could pay for your Starlink subscription at an EcoCash agent – game-changer. My hopes are that Ecocash can separate themselves from what may seem like a fight with Econet and Liquid and facilitate such payments.
2. Regulatory Intervention: The Reserve Bank of Zimbabwe could step in to create a framework for easier international payments. It’s a long shot, but stranger things have happened.
3. Innovative Fintech Solutions: This could be the push needed for a homegrown fintech solution to bridge the international payment gap.
4. Starlink-Specific Prepaid Cards: Similar to what some airlines offer for ticket purchases. Starlink could partner with a local bank, like Stanbic, and have clients fund these specific cards to make payments for their internet. Remember when FBC went after the ACCA peeps?
Conclusion: A Call to Action
As someone who’s been in the trenches of Zimbabwe’s tech scene, I can say with confidence that Starlink has the potential to revolutionise our digital landscape. But for that to happen, we need to solve this payment puzzle – and fast.
To Starlink: Find a local payment solution. Your technology is 21st century; make sure your payment options are too.
To local fintech players: There’s a massive opportunity here. Whoever cracks this code stands to gain big.
To potential Starlink users: Keep pushing. The more demand we create, the more pressure there will be for a solution.
The future of internet in Zimbabwe is bright, but only if we can figure out how to pay for it. As for me, I’ll keep helping Zimbabweans get connected, one tricky payment at a time. Who knows? Maybe by the time you read this, we’ll have cracked the code. Here’s hoping!
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For those still struggling with buying Starlink due to capacity problems, knowing which bank card to use or just general payment challenges, transferring a kit to Zimbabwe, selecting the right hardware for their needs, installation, accessories, troubleshooting Starlink and other such issues… a local ICT company, Safari Mounts, is helping Zimbabweans navigate Starlink problems with some hand holding. They can be contacted via this Google form and are charging a nominal fee to help. Techzim benefits from a referral fee when they help you.
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