Telecel targets Diasporans with 10pct bonus on remittances

HARARE, November 7 (The Source) —Telecel Zimbabwe says it will pay a 10 percent bonus to all recipients of inward remittances on its mobile money platform.

The mobile operator was last year granted permission by the central bank to receive international remittances directly into subscribers’ accounts through money transfer agents.

In April, the Zimbabwe government said it had acquired 60 percent stake in the telco from the Amsterdam-headquartered Vimpelcom through ZARNet, its wholly-owned Internet Service Provider (GISP).

Telecel’s mobile financial services head, Violet Masunda, said the decision to offer a 10 percent incentive was in line with government’s own efforts to encourage the use of formal channels to receive money from the diaspora.

“Telecash has decided to offer a 10 percent incentive to all registered users who receive international remittances from the diaspora community to encourage the use of formal channels as well as to grow the base of registered Telecash customers,” she said in a statement on Monday.

“Unregistered recipients will continue to receive the 3 percent incentive which is already being offered by the Reserve Bank of Zimbabwe.”

As of June 30 this year, Telecel had 1,204,571 subscribers on its mobile platform, Telecash.

With limited investment flowing into the country, remittances, have been a key source of liquidity for Zimbabwe.
Last year FDI to the country fell 23 percent to $421 million while diaspora remittances amounted to $2 billion.

The central bank estimates that half of that was also sent into the country through informal channels.

Government has been on a drive to motivate the estimated five million Zimbabwean citizens resident outside the country to contribute more to offset gaps in Foreign Direct Investment (FDI). – Source

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