- RBZ introduces a policy to formalize informal trading and promote digital transactions.
- Local authorities can't issue licenses to informal traders without bank accounts.
- All business accounts must have a POS machine or approved digital payment method.
Harare-The Reserve Bank of Zimbabwe (RBZ) has introduced a transformative policy aimed at formalizing the informal trading sector and promoting digital transactions.
Effective immediately, local authorities are prohibited from issuing licenses to informal traders who do not have bank accounts.
This directive, outlined in the 2025 Monetary Policy Statement, is a strategic move to bring informal traders into the formal financial system.
By requiring all business accounts both new and existing to be equipped with a Point of Sale (POS) machine or another approved digital payment mechanism, the RBZ is taking a proactive stance to facilitate digital transactions across the economy.
RBZ Governor John Mushayavanhu emphasized the importance of this policy, stating, “In line with the policy stance to enhance digital transactions in the economy, Banks and Payments System Providers (PSPs) are directed with immediate effect to ensure that every business account (new and existing) is issued with a Point of Sale (POS) machine or any other approved digital mechanism which can facilitate transactions in both ZiG and USD.”
The implications of this policy are profound, particularly in a country like Zimbabwe, where approximately 70% of the economy operates informally.
The informal sector has long been characterized by its lack of integration into the formal financial system, which has allowed many traders to evade taxes and operate outside regulatory frameworks.
By mandating bank accounts and digital payment mechanisms, the RBZ aims to address this issue by bringing informal traders into the formal economy.
This move is expected to enhance regulatory oversight, making it easier for the government to monitor economic activities and collect taxes.
For a nation struggling with revenue collection and economic instability, this policy could significantly boost public finances and improve the government’s ability to fund essential services and infrastructure projects.
This not only provides them with access to secure financial services but also opens up opportunities for credit, savings, and insurance, which are essential for business growth and economic stability. Financial inclusion also has the potential to reduce poverty and inequality by empowering individuals and small businesses to build financial resilience.
The shift towards digital transactions is another significant implication of this policy. By mandating the use of POS machines and other digital payment mechanisms, the RBZ is reducing the economy’s reliance on cash transactions, which are often associated with inefficiencies, security risks, and a lack of transparency.
Digital transactions are faster, more secure, and easier to track, which can help reduce illicit financial flows and improve the overall efficiency of the payment system. This transition aligns with global trends towards cashless economies and positions Zimbabwe to better integrate into the global financial system.
However, the success of this policy will depend on its implementation and the ability of informal traders to adapt to these new requirements. Many informal traders operate on thin margins and may struggle with the costs associated with opening bank accounts or acquiring POS machines.
Therefore, the RBZ’s policy represents a bold and necessary step towards formalizing Zimbabwe’s informal economy, enhancing financial inclusion, and promoting digital transactions.
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