Concern over steep banking costs

Source: The Herald – Breaking news.

---

Tawanda Musarurwa

Check Point Desk

EARLIER this month, Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mushayavanhu urged banks to move away from fee-income based models.

In his 2025 Monetary Policy Statement, he had laid bare that fees accounted for 22 percent of banks’ income, while lending — which should be the core role of banks —accounted for 13,46 percent of banks’ income.

But how high are local banks’ fees for basic services?

We analysed the charges of five local banks along five fee categories, namely: monthly maintenance fee, over-the-counter withdrawal fees, real-time gross settlement (RTGS) transfer charges, ATM withdrawal fees and request for account statement fees.

Based on the business conditions from AFC Commercial Bank (June 2024), Stanbic Bank Zimbabwe (December 2024), FBC Bank (October 2024), CBZ Bank (March 2025) and NMB Bank (August 2024), the following are some of the bank charges for individual accounts common across local banks:

Monthly maintenance fees:

· AFC Bank: US$5 (ZWG73)

· Stanbic Bank: ZWG125

· FBC Bank: US$5 (ZWG90)

· NMB Bank: US$2,75 (ZWG17) – Civil servants current account

· CBZ Bank: ZWG150 / US$6

Over-the-counter withdrawal fees:

· AFC Bank: 3 percent (minimum US$3 (ZWG43,80)

· Stanbic Bank: 3 percent per withdrawal, minimum ZWG12

· FBC Bank: 3,75 percent (minimum ZWG58,50)

· NMB Bank: 3 percent (minimum US$3, ZWG5)

· CBZ Bank: 3 percent (minimum ZWG40); Nostro – 3,5 percent (minimum US$2,27)

ATM withdrawal fees:

· AFC Bank: 2,5 percent

· Stanbic Bank: 3 percent of amount withdrawn

· FBC Bank: 2,5 percent + tax

· NMB Bank: 3 percent (minimum US$3, ZWG5)

· CBZ Bank: 2,8 percent (above US$5 or ZWG equivalent)

RTGS transfer charges:

· AFC Bank: 2 percent (minimum US$5, ZWG73)

· Stanbic Bank: 1,5 percent (maximum ZWG342)

· FBC Bank: 2 percent (minimum ZWG25, maximum US$50; US$5 flat)

· NMB Bank: 2 percent (minimum ZWG20, maximum ZWG105; Nostro – 1 percent)

· CBZ Bank: 2 percent (Above US$5 or ZWG equivalent)

Request for account statement fee:

· AFC Bank: US$0,20 (ZWG2.92)

· Stanbic Bank: ZWG9

· FBC Bank: US$3 (ZWG58,50 per request)

· NMB Bank: ZWG3,4 (US$0,15)

· CBZ Bank: ZWG25 / US$1,58 per page (manual)

Death by a thousand cuts

As the above analysis shows, standard banking services such as withdrawals, transfers and account maintenance all come with substantial fees. Unlike in other countries where banks make money primarily through lending, Zimbabwean banks rely heavily on fees and commissions. A simple cash withdrawal can attract charges of up to 3 percent, while maintaining an account incurs monthly fees regardless of activity. Consider the case of a small business owner who deposits US$1 000 into a bank account.

Every time they move this money — be it to pay suppliers, withdraw cash, or settle invoices — they lose a portion to fees.

By the time the money has been fully used, the business might have lost tens of dollars to charges alone.

Impact on wages

While there is no statutory minimum wage set by the Government, minimum wages are determined by sectoral wage councils for different industries. For the purposes of this article, we look at the impact of these bank charges on a hypothetical example of a worker whose net salary is US$500 and receives half of that salary in the local currency.

Assuming the worker withdraws 75 percent of their salary (US$187,50 in ZWG and US$187,50 in US dollars), the estimated charges are:

· Maintenance fees: US$5 to US$10

· Over-the-counter withdrawals: approximately US$5 to US$10 / ATM withdrawals: approximately US$5 to US$8

· RTGS transfers (if bills are paid electronically): US$5 to US$15

· Account statement requests: US$1 to US$3

This results in total monthly bank charges ranging between US$16 to US$46, translating to 4 percent to 9 percent of the worker’s pay.

For lower-income earners, such deductions are significant. This is not including other ‘smaller’ charges such as RTGS reversal fees, ZIPIT fees, bank-to-wallet fees, airtime purchase fees, Point-of-Sale purchase with cash-back, bill payments and SMS alert fees among others, which vary across banks. Some Zimbabweans have said banking feels less like a financial service and more like a monthly tax.

Comparisons

To place this in a regional and international context, we make comparison with big banks in South Africa and the United States, respectively.

Standard Bank Group (South Africa):

· Monthly maintenance fee: R55 (US$3)

· ATM withdrawal fee: 1 percent to 2 percent of withdrawal amount

· Over-the-counter withdrawal: R60 to R80 (US$3 to US$4)

· RTGS (EFT) transfer fees: R2 to R10 (US$0,11 to US$0,55)

· Account statement fee: R10 to R20 (US$0,55 to US$1,10)

Citigroup (US):

· Monthly maintenance fee: US$10 to US$15 (waived with minimum balance)

· ATM withdrawal fee: Free at Citibank ATMs; between US$2 and US$3 at non-network ATMs

· Over-the-counter withdrawal: Free

· RTGS (Wire transfer) fees: US$15 to US$25 per transaction

· Account statement fee: free (digital), US$3 to US$5 (paper)

Zimbabwean banks charge considerably higher fees relative to income levels compared to the South African and US banks.

RTGS transfers and withdrawal fees are notably high, making transactions costly.

The reliance on percentages for withdrawals (for example, 3 percent to 3,75 percent) instead of fixed fees exacerbates financial strain for those earning in local currency, in instances where the exchange rates fluctuate, as these costs become unpredictable. For a fairer system, banks in Zimbabwe could consider reducing RTGS fees, implementing lower flat fees for withdrawals, and offering more incentives for digital transactions. As it stands, high bank charges continue to erode disposable income, pushing many Zimbabweans towards informal banking alternatives.

Development economist Dr Prosper Chitambara says there is a huge macroeconomic incentive for increased use of the formal banking system. “The preference for cash reflects the structure of our economy. Our economy is now highly informal, which is a cash-based economy. To address this, we need to put in place the right kind of incentives for there to be a restoration of confidence and trust in the formal banking sector. The high bank charges do not help matters. Of course, the central bank has directed banks to increase deposit rates, but even that increase is still below inflation, so effectively it means that you are actually losing money by leaving your money in the bank,” said Dr Chitambara.

“The (wider) implications are dire, because it is difficult to effectively manage the economy when a significant proportion of the total cash or liquidity is outside the formal system, so it makes it difficult to ensure that policies are effective, or what we call macroeconomic policy sterility.”

According to the Finscope Zimbabwe 2022 Consumer Survey, the percentage of the population that was banked improved, rising from 24 percent in 2011 to 30 percent in 2014 and 46 percent in 2022.When mobile money usage is factored in, the country’s financial inclusion level rises to 84 percent as of the end of 2022.

However, as the National Financial Inclusion Strategy II (2022 – 2026) points out, mobile money is “mainly used to buy airtime, pay bills, payments and domestic remittances, but very rarely to access credit or savings.” Therefore, it has a limited role in facilitating the flow of funds from savers to borrowers, which allows businesses to invest, create jobs, and drive economic expansion.