HARARE – The Reserve Bank of Zimbabwe (RBZ) has announced new measures to promote the adoption of plastic money by enforcing mandatory licensing requirements for all business operators.
Under the Shop and Shop Licensing Act, businesses will now be required to possess a bank account and a point-of-sale (POS) machine. This initiative aims to enhance price stability and ensure the availability of basic commodities across the country.
According to a press release following Tuesday’s Cabinet meeting, the RBZ will deploy inspectors to monitor compliance and curb any misdemeanors that could undermine these goals. This move is part of the government’s broader strategy to modernize the financial sector and foster economic stability through increased use of electronic transactions.
By promoting electronic transactions, the RBZ’s initiative will reduce reliance on physical cash, thereby mitigating issues related to cash shortages and enhancing the efficiency of currency management. This can stabilize the Zimbabwean dollar and reduce inflationary pressures.
The push for plastic money is aligned with broader economic reforms aimed at improving financial transparency and reducing the informal economy. These reforms can lead to better tax compliance and increased government revenue, which is crucial for public investments and services.
Increased use of plastic money can facilitate smoother transactions for small and medium enterprises (SMEs), improving their operational efficiency. This can lead to more robust business growth and greater economic participation at the grassroots level.
With easier access to electronic payment systems, consumers can more readily purchase local goods. This increased demand can stimulate local agriculture and production, supporting Zimbabwean farmers and manufacturers.
By ensuring that businesses have the necessary infrastructure to accept electronic payments, the RBZ’s measures can attract more investments into the industrial sector. Modernized payment systems are a key factor in re-industrialisation efforts, making local industries more competitive.
Overall, the RBZ’s mandatory licensing requirements for plastic money adoption are expected to have wide-ranging positive effects on Zimbabwe’s economic reforms, currency stability, and industrial growth, ultimately fostering a more resilient and modernized economy.