Banks and money transfer agencies traded accusations in
Parliament on Monday over an uneven playing field.
Bankers Association of Zimbabwe (BAZ) accused money
transfer agencies such as EcoCash, One Money and Telecash of enjoying an unfair
advantage over financial institutions.
This came out during a meeting convened by the
Parliamentary Portfolio Committee on Budget and Finance chaired by Chikomba
Central MP Cde Felex Mhona (Zanu PF), who had invited banks, money transfer
agencies, business and industry to hear their views on how the economy could be
improved.
During the meeting, BAZ chief economist Dephine Mazambani
said money transfer agencies were regulated by the Postal and
Telecommunications Regulatory Authority of Zimbabwe, while banks were regulated
by the Reserve Bank of Zimbabwe (RBZ), but yet both provided similar services
of collecting and dispensing money.
“Money transfer agencies and banks are not regulated the
same way,” she said. “We are regulated by the RBZ while they are regulated
through Potraz.
“Our regulation terrain is different, but one of the key
challenges is that while we are regulated differently, sometimes you see that
we offer similar or the same products or services which creates an uneven
playing field and sometimes pose a risk to the financial sector, seismic risks.
It is the regulatory environment that we are hoping that can be levelled.”
Cassava Smartech Zimbabwe chief executive Mr Eddie Chibi,
which owns EcoCash, said Mrs Mazambani’s views were misdirected. “EcoCash is under the direct oversight of RBZ,” he said.
“We are regulated under the National Payment System Act and
we make as frequent returns and engagement with the central bank as any other
financial services sector in Zimbabwe, including banks.
“For certain services, we are also regulated by the RBZ
Financial Intelligence Unit where we submit all our suspicious transactions
reports and other general issues which we pick. We have invested in a robust
system which tracks transaction in terms of any suspicions of fraud and money laundering
which we share with the RBZ on a regular basis.
“In terms of our remittances services, we also get
regulated by the Exchange Control division of the RBZ, including the licence
which we have for the EcoCash Bureau de Change.”
Zimbabwe National Chamber of Commerce representative, Mr
Archie Dongo called on Government to narrow the gap between cost of subsidised
products and the price on the market to avoid arbitrage.
He said while subsidies were meant to address affordability
of products and services, there was need to rationalise the cost of the end
product and how much the market was charging.
“We fully understand the thrust of subsidising certain
products for the benefit of the general populace, particularly in an era of
austerity,” said Mr Dongo.
“The demand that has been created by lowering of prices is
quite high, but the supply has been reduced or is inadequate, for example, when
you use Zupco, the queue will tell a story that not everybody who wants to use
Zupco will be able to use it.
“The gap between subsidised price and market price is
rather wide. The gap is creating very lucrative arbitrage opportunities for
some people.” Herald
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