Zimbabwe’s money transfer services which are thriving due the fast-growing remittance business sector are now expanding to become deposit-taking microfinance institutions.
Mukuru Financial Services Zimbabwe Limited, licensedin October 2024, has been licensed to become a deposit-taking microfinance institution.
A Reserve Bank of Zimbabwe source told The NewsHawks that several money transfer platforms have applied to become deposit-taking businesses to tape into the booming market.
Diaspora remittances grew by 16.5%, from US$1.6 billion recorded in the first nine months of 2023 to US$1.9 billion in the corresponding period in 2024.
Remittances are projected to close 2024 at US$2.49 billion, improving to US$2.51 billion in 2025.
As at 30 September 2024, the banking sector comprised of 14 commercial banks, four building societies and a savings bank.
In addition, there were 259 credit-only microfinance institutions, eight deposit-taking microfinance institutions and four development financial institutions.
