( 3 minutes read)
· Mobile phone monetary transactions have been suspended in Zimbabwe
· Stock exchange sources said that trading was also suspended until further notice
· The stock exchange is blamed for the collapse of the Zimbabwe dollar, the value of which has nosedived despite the government experimenting with various strategies to shore up its value
Mobile phone monetary transactions have been suspended in Zimbabwe. This has affected trading on the stock exchange and mobile phone monetary transactions for buying goods and services. Stock exchange sources said that trading was also suspended until further notice.
The government has suspended these transactions citing criminality and economic sabotage. The stock exchange is blamed for the collapse of the Zimbabwe dollar, the value of which has nosedived despite the government experimenting with various strategies to shore up its value. Experts say, a sizable chunk of the transactions in the country, of late, is through digital transactions and that way the suspension of mobile transactions would affect the economy badly. Mobile money is common with people of all walks of life for buying goods and services.
Of late, the quantum of mobile transactions has gone up due to the penetration of mobile phones in the country. This is true for most of the countries in Africa. Some estimates put that mobile money is fast replacing the currency notes in some African countries, particularly Nigeria, South Africa, Tanzania, Kenya etc. According to Zimbabwe central bank data, more than 80 per cent of all transactions are conducted on phones due to a shortage of banknotes. However, of late, the government thinks that mobile money platforms are complicit in illicit activities, which has considerably contributed to the weakening of the domestic currency.
