eBusiness Weekly
Business Writer
CBZ Holdings (CBZ) has introduced a new remittance mobile and internet application between the United Kingdom and Zimbabwe that allows the receiver to pay bills or deposit into their nostro accounts without withdrawing hard cash first.
In a statement the bank said: “Receive USD from the UK via the Zestful Innovative Knowledge-based International (ZIKICash) remittances and choose what to do with it. You can cash it out, bank it if you have a CBZ Bank foreign currency account or use it to pay bills, school fees and many other services directly from your wallet.”
Through ZIKICash remittances, CBZ has gone innovative as it continues to invest in its technology for better financial innovations.
CBZ said: “ZIKICash is an idea anchored on re-establishing control in the employment of diaspora remittances by seeing the bigger picture of financial planning, investment and employment access to funds.
“Driven by the need to empower the society aided by CBZ products and services, we are cognisant of creating conditions that facilitate and encourage the investment of remittances and other financial resources from the diaspora.”
According to CBZ, one key element in those conditions is financial inclusion, which facilitates the accumulation of assets, the leverage of assets available for investment and the management of risks in Zimbabwe.
The innovation comes as the diaspora remittances through the official channel registered a 16 percent increase to US$1,87 billion last year up from the US$1,62 billion received during the same period in 2022, the Reserve Bank of Zimbabwe said.
International remittances, which comprise transfers by Zimbabweans in the diaspora and international organisations, are a critical source of liquidity in Zimbabwe’s economy with a positive impact on livelihoods across the country.
An estimated three million Zimbabweans are believed to be in the diaspora and they regularly send money back home to sustain their families.
In his inaugural Monetary Policy Statement last week, RBZ Governor Dr John Mashayavanhu, said secondary income inflows increased by seven percent from US$3,1 billion in 2022 to US$3,3 billion in 2023.
The increase, he said, was due to higher inward remittances from the diaspora. Personal transfers increased by 9,7 percent to US$2,2 billion in 2023, from US$1,97 billion in 2022.
“Diaspora remittances, through the official channel, amounted to US$1,87 billion, a 16 percent increase from the US$1,62 billion received during the same period in 2022,” said the Governor.
International remittances received through the normal banking system on behalf of International Organisations (NGOs) amounted to US$1,14 million, maintaining the same level as the previous year.
Dr John Mashayavanhu noted that in the first two months of the year, foreign currency inflows have shown signs of strong recovery.
“The foreign currency receipts for January and February 2024 amounted to US$2,2 billion compared to US$1,8 billion received during the same period in 2023, representing a 23 percent increase, driven by strong exports and remittances.”
