Zimbabwe: RBZ Clamps Down On Mobile Money Abuse Amid Fraud Concerns
The Reserve Bank of Zimbabwe has announced sweeping new controls on mobile network operators citing concerns over fraud, unregulated lending and threats to financial stability.
Speaking on recent developments in the financial sector, RBZ Governor John Mushayavanhu said authorities had uncovered widespread abuse of mobile money platforms.
He pointed to a recent case in Chitungwiza where individuals were found holding dozens of SIM cards linked to mobile wallets.
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“Some individuals were found with up to 50 SIM cards each and each of those SIM cards is a wallet,” he said.
According to the central bank, many of these accounts are fraudulently registered including under the names of deceased individuals making it difficult for police to trace financial crimes.
“When law enforcement tries to track perpetrators they hit a dead end because the account belongs to a deceased person,” Mushayavanhu said.
In response, the RBZ has ordered all mobile network operators (MNOs) to verify and clean up their customer databases in coordination with the Registrar General’s Office.
Operators have been given until the end of June to complete the exercise after which the central bank will conduct an audit.
Authorities say any accounts that cannot be linked to valid identification must be removed.
“We cannot have an environment where people are laundering money through ghost accounts,” the governor said.
The RBZ also accused mobile operators of selectively applying financial regulations particularly on transaction charges.
Mushanawhu said rules requiring zero charges on small transactions from US$0 to US$5 or the equivalent in local currency must apply to mobile platforms as well.
“They want to be banks when it suits them but not when it doesn’t,” he said.
He urged the public to report violations, warning that non-compliant operators could face licence withdrawal.
The central bank also raised alarm over small, instant loans offered via mobile platforms, often accessed through USSD codes.
Mushayavanhu described these “nano loans” as a form of unregulated money creation.
“Imagine an operator with millions of subscribers giving each US$10 that’s money being created without backing,” he said.
The RBZ has now ordered that such lending must be underwritten by commercial banks and reflected on their balance sheets, with compliance subject to audit.
On broader monetary policy, Mushayavanhu signalled a shift in Zimbabwe’s approach to adopting a single currency.
While previous plans targeted 2030, he said the focus is now on meeting key economic conditions.
“We are not talking about 2030 anymore, we are talking about conditions precedent,” he said.
These include sustained low inflation, adequate foreign currency reserves covering three to six months of imports and a more efficient foreign exchange system.
Zimbabwe has recently recorded single-digit inflation, but the governor cautioned against reading too much into short-term gains.
“It’s too early to celebrate. We want to sustain that over time,” he said.
He added that if stability is maintained, a mono-currency system could be introduced earlier or later than 2030.
The measures highlight growing efforts by authorities to tighten oversight of the financial sector, as Zimbabwe navigates ongoing currency reforms and seeks to restore confidence in its monetary system.
By 263Chat.
