EcoCash FCA wallet cash-in RETURNS. Is the informal market going to jump on?

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EcoCash Cash In, Cash Out, Remittances

Last night EcoCash Zimbabwe launched its domestic remittance service and at the same event, the country’s largest mobile money operator also announced that Cash in services are back through its FCA Wallet that will operate from the brand new *153# USSD (and mobile app). This development looks to be in line with the near as makes no difference dollarisation Zimbabwe has been headed for, albeit at a glacial pace.

EcoCash FCA Wallet Cash In

Return of the Cash-In

Late last month we reported that the EcoCash Cash-in facility was still suspended due to a directive from the Reserve Bank of Zimbabwe that said Agent Lines were no longer permitted.

Following the Government Press Release on the Suspension of Monetary Transactions on Mobile Based Money Platforms (One Money, MyCash, Ecocash and Telecash) dated 26 June 2020, the Reserve Bank of Zimbabwe (the Bank) wishes to advise the public as follows:

a) All mobile money agents are suspended from facilitating mobile financial transactions with immediate effect.

b) All merchant transactions are suspended except for receiving payment for goods and services as well as payment of utilities (water, power and airtime), which have been limited up to ZW$5000 per day for the convenience of the transacting public.

c) All mobile money liquidations should be done through the banking system.

d) All bulk payer transactions have been suspended with immediate effect.

These unprecedented measures have been necessitated by the need to protect consumers on mobile money platforms which have been abused by unscrupulous and unpatriotic individuals and entities to create instability and ineffciencies in the economy. Members of the public are assured that their bona-fide transactions will be processed normally

John P. Mangudya


27 June 2020

RBZ Statement from 27 June 2020

From that time cash-in and even cash-out were no longer permitted in Zimbabwe and the country was forced to shift to the banks for those services. In what is an interesting turn of events, Cash-In and Cash-Outs are back in USD according to EcoCash’s Domestic Remittance launch event.

The return of the cash-in facility, I think, demonstrates the power that remittances have. Before the boom we have seen over the last couple of years, it would have taken a very brave individual to predict that cash-ins (local currency or FCA) will be brought and for EcoCash no less.

That being said EcoCash’s closest competitor OneMoney launched its own remittance service (OneMoney Remit) which works on similar principles. I would speculate and say they probably got the go-ahead at the same time but maybe EcoCash wanted to work on a more complete product?

Charges charges charges…

As with anything to do with EcoCash there will be an audible sigh before we look at what it will cost to do a cash-in. Well, according to the EcoCash team last night there are no fees for depositing money into your EcoCash FCA account up to US$5. After that, all you’ll have to pay is the dreaded Intermediary Money Transfer Tax (IMTT) or more commonly referred to as the 2% Tax. So, there is no charge that EcoCash is levying for this service, all you’ll need to meet the government’s requirement for the transaction.

If you want to cash in, you can do so at any Econet shop nationwide. You can deposit the money into your or someone else’s wallet. The latter will be through EcoCash’s Domestic Remittance service.

Will the informal sector jump in on this?

EcoCash is a massive company with millions of subscribers, and many of them are in Zimbabwe’s very informal economy. The one thing that killed access to digital payment options, especially in remote areas without bank branches was the banning of agents and by consequence cash-in and out.

This left many resorting to transacting purely in cash both in local currency and USD because of the lack of access to digital channels to expand options. The result of all of this was an increase in the number and power of the National Mattress Bankers Union of Zimbabwe and that hurt financial institutions because they could not get money from remote communities or reach them.

With EcoCash announcing the return of cash-in facilities at its official shops, this might cause a shift in how people store and spend their money. It’s certainly not going to happen all at once or overnight because we are all too familiar with the NOSTRO raids, flip-flopping that has happened with bond notes and the 1:1 dream we were promised way back when and the trust that has been lost.

However, this could be one of the catalysts that move things forward in a positive direction because of how ubiquitous EcoCash is as a service. At the launch event last night, all in attendance were told that merchants will soon be able to accept payment through EcoCash’s FCA facility. There was talk of priority merchants getting access first before it became more widely available.

It’s a game of wait and see now…

You should also check out

Last year I had a conversation with Eddie Cross, a former member of the Reserve Bank of Zimbabwe’s Monetary Policy Committee, and in that conversation, he said we should scrap company tax, halve Pay As You Earn (PAYE), and there should be a 5% Intermediary Money Transfer Tax (IMTT) to make up the shortfall.

Since EcoCash cash-in is going to involve the 2% IMMT, do you agree with Eddie Cross? You can listen to or down that episode of Technikari with the player below. Alternatively, you can access it with the link here

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    1. Ruf

      Just to make sure I read this property….if I deposit 20usd …….the other 15 I pay 2% on that
      Furthermore.wuta are the transaction charges

      1. J

        if u deposit 5 bucks going up the 2% tax kicks in.
        2% of the whole amount you sent.
        If its 20 then its 2% of 20 not 2% of 15 🥺
        If you’re depositing $15 its 2% of 15 not that $5 is free and 2% tax of $10

    2. Candy

      So does it mean Innbucks does not charge the 2% considering they are charging 2%.

      1. Anonymous

        It’s 2% inclusive of the tax, meaning InnBucks is not charging anything for the service yet… unless they are evading tax.

    3. Anonymous PQR

      I can’t believe we will be getting charged for depositing…..shouldn’t they be doing something to ensure that we deposit rather than achieving the opposite

    4. J

      Knowing ecocash/econet its going to be hard to cashout as they need the dollar.they will make every effort to keep as much US in the account as they can

    5. HM

      I don’t get it. The remit business is simple. Someone will cashout at the econet shop near them. This forex wallet. What use is it for. Just to cash in? Then what? How do you get to use the money or cashout. And 2% of the USD is a hell lot of money. Add to it the network charges and MAIWEEE.

    6. Mandla Mataure

      Eddie Cross needs to lay off the green pipe that he’s smoking…

      1. Anonymous

        Why? His points are valid. Our PAYE is extremely high. If you’re earning USD for e.g. and earn $1,000, you take home $600. That gives the taxman $4,800 per year. Cutting that to $2,400 surely encourages businesses and employees to be tax compliant.

        Considering the majority of earners in Zim are informal, a 5% IMMT tax would mean more is collected from people who’ve probably never heard of PAYE.

    7. Anonymous

      The one challenge that led to the ban needs explaining as to how it will be resolved. Limited availability of cash at Agents. If I cash in $1,000 in Harare, and send $500 to my chomie in Mutorashanga, then chomie goes to the Agent to cash out and agent says, no cash today come back tomorrow. My friend goes again tomorrow and is told come back again tomorrow. After 3 days, Agent then says, 10% more for you to get cause it’s been difficult to get the cash, my chomie collects $450 out of desperation, Agent pockets $50. How is EcoCash addressing that?

      Another concern is on fueling the parallel market. Anyone with ZWL willing to pay whatever rate to get USD will do so. With the convenience of sending via EcoCash, rates will quickly gain ground based on the highest bidders price for that day. Those with USD will peg a higher price every week.

      How has EcoCash resolved these challenges, assuming they’ve managed to convince the regulator that this will not be the case?

      1. Imi Vanhu Musadaro

        The issue with cashouts is similar to the issue with corruption, it takes 2 to participate. If noone is willing to pay a premium, eventually no agent will be able to overcharge. But, sadly, most people create an exception to their individual scenario and lament how they “didn’t have a choice.” Afterwards, the same people take to social media to complain and expect the situation to be remedied.

    8. Samaita

      I MAY use é service as a last resort. Cash won’t be available to cash out. Econet shops to be overwhelmed. I said your profet (or profit) watever hahaha

    9. Kukuzile

      Econet will always tell you hatina cash.Go to this get there it will be packed.long queues etc .ini will stick to City Hopper

    10. Johane

      Why is the government suppressing the poor .this issue of 2% is a burden to individuals remember workers pay taxes in their jobs .why is it that our government is giving a burden to individuals whether you are old say 70 years they still need that tax crippled blind and whatever condition you have. It’s not fair. What kind of punishment are we suffering from why..

    11. Johane

      Why can’t the members of Parliament debate on this issue of 2% tax it’s not far. We cannot continue carrying this burden .now you say no churches, what you want is to siphon us dollars from individuals. Remember they are competition already . revise your policies with the government .

    12. Executioner

      Ok ok guys ,to make it clear Ka are they saying it’s 2pecent pa deposit then 2percent pa withdrawal here. Then it’s 4percent

    13. Farai Rungava

      I agree with eddie cross zim has more informal businesses and self employed its ridiculous to have high PAYE , if gvmnt wants to collect more with taxes for sure they need to increase IMMT .

      If ecocash don’t onboard merchants and bring back agents I smell big challenge on cash outs and they FCA wallets will be just a means to pay tax

    14. Reader

      Nothing to celebrate. The same problems Econet had with its agents charging premiums on cashouts will surface again further fuelling the parallel market

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