RBZ moves to strengthen financial sector

By Davison Vandira

THE Reserve Bank of Zimbabwe’s quest to purchase 15 percent stake in Zimswitch payment platform has been hailed by economists as key to strengthening the country’s financial system for sustainable economic growth.

Economists opine that the significance of the central bank having shareholding stake in Zimswitch cannot be understated as past financial ecosystem disturbances caused untold suffering, eroding public confidence to the detriment of the economy in general.

The move is anticipated to enhance monitoring and surveillance of the financial systems in Zimbabwe.

The strategic move follows the announcement by the central bank that ZIMSWITCH is now the designated national payment platform for all mobile money providers which improves financial interoperability.

Economists have been excited by prospects of RBZ monitoring payments, clearing and securities settlement systems in Zimbabwe, to ensure implementation of sound risk management practices.

“This is in line with the RBZ’s mandate to make sure the financial sector is well regulated and sufficiently monitored,” said Paison Tazvivinga a Development Economist.

“This move will ensure that payment systems are effectively used as a mechanism to promote electronic transactions, consumer protection, interoperability and financial inclusion in the country,” said Kudakwashe Mugova Economic Analyst.

“This is a positive move that is in line with best practice of managing any economy’s financial systems.”

Eradication of financial ecosystem disturbances are a key ingredient for economic development, hence local economic observers are optimistic that the central bank is on the right path.