Earlier today Telecel Zimbabwe announced it will be offering an extra 10% on all international remittances received via its TeleCash mobile money platform which has existing partnerships with remittance services like Hello Paisa, Mukuru and Mama Money.
According to TeleCash Head of Mobile Financial Services, Violent Musunda, the 10% incentive will encourage the use of formal channels to receive money from the diaspora in line with Government’s current efforts to formalize remittances as well as well as grow the subscriber base of Telecash customers.
Telecel further stated that:
“Unregistered recipients will continue to receive the 3% incentive which is already being offered by the Reserve Bank of Zimbabwe.
Telecel’s incentive driven remittances drive is the first of its kind in Zimbabwe by a private company let alone a by a mobile money platform. It is clear Telecel is taking full advantage of the Diaspora Remittances Incentives Scheme (DRIS) instituted by the RBZ in October this year which is expected to persuade Zimbabweans to use the officially recognized channels ensuring foreign currency flows to the Central Bank. You can read more on our interpretation of DRIS here.
Efforts to get a hold of Telecel to understand how this new system will work were fruitless by the time of publishing. We are not sure when the extra 10% will start coming into effect, we are also not sure whether the 10% is part of the already provided 3% by the RBZ, if TeleCash subscribers could be earning up to 13% interest, or if Telecel is just adding another 7% either way, you’re set to walk away with much more money than what was sent to you, even though it might be in Bond Notes.
Telecel is also taking advantage of the introduction of Bond Note, this would not be a sustainable business model in a USD economy. Payouts from mobile money and Banks are most likely going to be solely done using Bond Note regardless of the currency deposited or remitted from abroad something we saw Stanbic Bank try to avert liability of through its efforts to try and change client terms and conditions. Seems like every company is now gearing to survive or cash in on the Bond Note Era.
Seems like every company is now gearing to survive or cash in on the Bond Note Era. Tell us what you think are Telecel’s reasons for implementing such an incentive driven scheme to drive up sunscribers.
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