By ZBC Reporter
AS government intensifies efforts to bring sanity to the local financial sector, economic minds have advised monetary authorities to be holistic in their approach to decisively deal with financial challenges bedevilling the country.
The 2008 global financial crisis was primarily caused by lack of regulation in the United States derivative financial markets.
This financial history guide justifies Zimbabwean authorities’ move to suspend all mobile money platforms that are unregulated as they have exposed the country to illegal and unscrupulous financial activities.
In light of this, Zimbabwe National Chamber of Commerce CEO, Mr Christopher Mugaga encouraged government to be totally prudent in dealing with the country’s financial challenges.
“The distortions in the financial sector from 2019 have caused irreparable damage and these decisions by government are trying to deal with financial models which are not well specified especially with regards to mobile money platforms,” noted Mugaga.
Another economic mind, Mr Titus Mukove believes any economy’s financial integrity is based upon Know Your Customer (KYCs) of which the local mobile money platforms are found wanting on that aspect, yet they are transacting substantial amounts.
“What government has been doing over the past few months to try and sanitize the country’s financial ecosystem is a welcome development especially on issues to try curtail exchange rate volatility which has impacted negatively to the country’s micro and macro-economic environment,” he said.
The dominance of mobile money in the economy has increased the rate of local transactions in a way that is disproportionate to the country’s Gross Domestic Product, hence an increased inflation rate.