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President ED – State had to act against EcoCash because $8.4 billion was circulating outside the banking system

President Mnangagwa Inauguration

President Mnangagwa recently addressed a ZANU-PF Committee in Gweru and in that address he spoke on the long-running feud between EcoCash and the state.

The President had some interesting things to say about the mobile money operator which has been accused by the financial regulator and state officials of being behind runaway inflation.

We realised that Ecocash was behind all this so we studied this thing and got to their server and found everything, every corruption and takatora tsvimbo ndokurova, it was painful to others but we said we only allow limited mobile money and it must reflect in the account.

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President ED said that there was $8.4 billion circulating outside of the banking system which they only discovered after investigating:

We were all confused as to what was happening until we set up a committee and we discovered there was up to $8,4 billion circulating outside the banking system, which money in financial terms, is phantom money, which is some sort of ghost money whose source no one knows.

Nothing new here

The President’s comments just recall what the regulator (RBZ) has said about EcoCash and mobile money operators before. RBZ claimed that mobile money operators were actually creating money which isn’t backed by balances in their trust accounts.

Because of the weak KYC of mobile money platforms, the regulator suggests that many account holders were using “ficticious and unverified” identification particulars. This in turn makes it extremely difficult to find out who is behind money laundering.

The result of this has been new regulation that has limited the use of mobile money. Revised monthly and daily limits were introduced and a limit has been placed on the number of mobile money accounts one can have.


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3 thoughts on “President ED – State had to act against EcoCash because $8.4 billion was circulating outside the banking system

  1. Can’t argue with results….the rate has been stable for 4 weeks now….which begs the question why they did not do it earlier

  2. I personally do not like Z-PF, but this is a good thing that the Z-PF Government did, though they should not have allowed it in the first place as some of us suffered irreparable harm. But I must more applaud the functionaries in the Z-PF political party &/or the Military because it was they that acted and the technocrats at RBZ, Finance Ministry, who should have known better had to play ball! We cannot have a single and private company literally holds the entire nation to ransom! Remember when Econet said it wasn’t possible to disable those extortive cash selling Ecocash Agents from the Ecocash System without disabling the entire Ecocash System? I smelled / smelt a rat or two then, but we all know now that these Cashout Ecocash Agents and some Merchant to Merchant functions were disabled 2-3 months ago and Ecocash is still functional with respect to other Ecocash program functions. The question is, WHY DID ECOCASH LIE TO THE WHOLE NATION THEN? I think they also need to be investigated for these lies too! Is it because, they wanted the Finance Ministry to quake in its boots on the impending loss of 80% of the 2% tax. Possibly! I rest my case, though it is not tired!!!

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