Zimbabwe Suspends Mobile Banking, Stock Exchange Trade

Zimbabwe on Friday, June 26 2020, abruptly suspended all mobile money transactions, the most widely used platform to make and receive payments in the crisis-ridden country, claiming the move would tackle crime and economic sabotage. The government also suspended all trade on the country’s stock exchange, which it accused of being complicit in illicit financial activities.

President Emmerson Mnangagwa
President Emmerson Mnangagwa

“Government is in possession of impeccable intelligence … whereby mobile-based phone systems … are conspiring with the help of the Zimbabwe Stock Exchange — either deliberately or inadvertently — in illicit activities that are sabotaging the economy,” it said.

Here Is What You Need To Know

  • An information ministry statement said government was suspending with immediate effect “all monetary transactions on phone based mobile money platforms in order to facilitate intrusive investigations”.
  • In 2016, mobile money payments reportedly accounted for more than 80 per cent of all electronic payment transactions.
  • The shock announcement coincided with month-end when people receive and withdraw their salaries via mobile phone banking.
  • In a country critically short of bank notes, the move will likely shut most general transactions from payment for groceries and services such as electricity.
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Suspending mobile banking transactions in Zimbabwe will have severe effects on startups in the country

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  • President Emmerson Mnangagwa, who took power in 2017 following a military coup pledging to revive the moribund economy, now blames the economic malaise on unnamed “political detractors”.

“We are fully cognisant that this battle is being fuelled by our political detractors, elite opportunists and malcontents who are bent on pushing a nefarious agenda,” he said this week.

Suspending mobile banking and stock trading in Zimbabwe is coming at a time when the country is in the throes of its worst economic crisis in more than a decade, The Business Times reports. The country is short of cash and basics including fuel and the staple cornmeal. According to new data, annual inflation was inching closer to 800 per cent in April.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.