Upsurge in mobile transactions likely just ‘hot air’ – warns renowned economist

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By Business Reporter

RENOWNED economist DR Godfrey Kanyenze has warned the while upsurge in the number of Zimbabweans using mobile platforms is commendable, there is need to consider whether these transactions are positively impacting the economy.

“…this presents us with the challenge to analyse whether the use of mobile platforms is moving real money or mere digits which cannot make significant differences when banked and whether the banked money is of a significant value to spur economic growth,” he said.  

Kanyenze observed that the bulk of e-channel transactions are not involved in cross border transactions and are may not be making any meaningful contributions to boost economic growth.

“…so this could just be ‘hot air’ being transacted on the mobile platforms and there is need therefore to carry out a critical enquiry,” he added   

A report entitled Zimbabwe Banking Sector, Going Digital observes that traditional banks have been forced to shift their models, under pressure from the advent of mobile banking, including mobile money services.

“We therefore expect banks to continue coming up with more innovative products within the e-banking and mobile banking space that will add convenience to the customer as well as increase non-funded income,” says the report.