Telecel gets RBZ nod for diaspora transfers

via Telecel gets RBZ nod for diaspora transfers | The Herald November 11, 2015

MOBILE network operator Telecel Zimbabwe has received regulatory approval from the Reserve Bank for its clients to receive cash on their mobile phone wallets directly from the diaspora.

After getting the permission for its clients to receive incoming international remittances directly into the subscribers’ Telecash wallets, Telecel said it will work with Mukuru to immediately avail the service to its subscribers.

Mukuru is a money transfer facility between Zimbabwe and South Africa Telecel, Zimbabwe’s third largest mobile network, said that plans are also at an advanced stage to include Western Union as a partner.

Diaspora remittances to Zimbabwe surged by 200 percent from 2009-2014 amounting to $3,5 billion. The RBZ is targeting $1 billion through the formal channels while another $1 billion might be realised through informal channels.

“The Telecash community is growing rapidly and we are proud to announce that we have now reached 1 million users,” Telecel said, and stands to benefit from the huge Zimbabwe diaspora base.

Estimates of Zimbabweans in the diaspora are so broad with the International Organisation for Migration office in Harare approximating that 500 000 to 4 million live abroad, mainly South Africa, which is believed to be home to two to three million locals.

“Zimbabwe has a huge Diaspora community, which looks after family and friends locally and this new international remittance licence will have a huge impact on the convenience our Telecash subscribers experience while receiving money from outside our borders,” said Telecel Zimbabwe head of mobile financial services, Arthur Matsaudza.

Econet Wireless is Zimbabwe’s biggest mobile network operator followed by State owned network, NetOne, however the oldest.

“The licence to receive incoming international remittances has been granted to us following Telecel’s compliance with the strict regulations and requirements that are in place to ensure the security of depositors’ funds and to prevent financial crimes like money laundering,” Mr Matsaudza added.

Already, Telecel and Mukuru have integrated their systems so that Diaspora funds can be accessed instantly when they are deposited by the sender. The integration of Telecash and Mukuru systems means that people sending money from across the border can initiate payment from outside Zimbabwe.

They do this by simply providing a Telecel subscriber’s telecash registered mobile number and the money will be deposited instantly and directly into the receiver’s mobile wallet.

Mukuru is currently available in South Africa and the UK. Telecel is working on increasing the availability of money transfer services from countries like US, Australia, Canada and Botswana through partnerships with money transfer agents.

Chief executive Mrs Angeline Vere, confirmed that the mobile operator, as part of its long-term strategy, is looking into using partnerships to increase the convenience of its customers.

“Already, we are currently in talks with various international remittance partners with key corridors in South Africa, Botswana, UK, Australia and the US among other potential countries.

“We are very confident these partnerships will change the overall mobile financial service experience our customers will have on our Telecash platform,” said Mrs Vere.