NEW, tighter regulations introduced recently to improve oversight of Zimbabwe’s fast-growing digital financial ecosystem were long overdue to protect consumers, financial analysts say.
Banking sector experts say the regulatory framework is critical to safeguard financial stability and tighten controls against money laundering and terrorism financing.
In the 2026 National Budget, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the rapid expansion of digital lending and mobile-based credit had brought both opportunity and risk, necessitating further regulatory intervention.
Over the past few years, digital lending platforms have expanded access to credit, especially for households and small businesses previously excluded from the formal banking system.
With mobile phone penetration rising and fintech innovation accelerating, digital credit has become a key driver of financial inclusion.
However, Minister Ncube cautioned that the sector’s growth had outpaced regulation buffers.
“Without an appropriate regulatory framework, risks such as unethical lending practices, high transaction costs, cyber-attacks and potential over-indebtedness may arise,” he said. “These risks can undermine consumer trust and threaten financial stability.”
To address this, the Government is developing a comprehensive framework to regulate digital credit providers, ensuring responsible lending while supporting innovation.
The framework will set standards for transparency, consumer protection and data security, while aligning digital lending practices with broader financial sector regulations.
Banker Mr Raymond Madziva said the move was long overdue, noting that the absence of regulation had created uneven practices across the market.
“Digital credit has filled an important gap, but without oversight, it can easily become predatory,” said Mr Madziva. “A clear regulatory framework will protect borrowers, bring discipline to the market and ultimately strengthen confidence in digital financial services.”
He added that banks and fintechs alike would benefit from clearer rules, especially as traditional lenders increasingly partner with digital platforms to extend credit.
Alongside digital lending reforms, the 2026 Budget places strong emphasis on measures to combat money laundering, terrorism financing and related financial crimes. Zimbabwe has intensified its efforts following the completion of its third National Risk Assessment (NRA) in 2025.
The assessment identified fraud, smuggling, tax evasion, illegal trading in precious minerals and drug trafficking as major sources of illicit financial flows. It also highlighted growing risks linked to virtual assets and other technology-driven financial products.
In response, the Government has adopted the Anti-Money Laundering and Counter Financing of Terrorism Strategy (2025–2029), which provides a coordinated framework for financial institutions, regulators, law enforcement agencies and designated non-financial businesses.
A key pillar of the strategy is the regulation of Virtual Asset Service Providers (VASPs). The Reserve Bank’s Financial Intelligence Unit has been directed to lead the development of a comprehensive regulatory regime aligned with regional and international best practice.
“This is a critical step,” said investment analyst Ms Sheila Kadonzvo. “Virtual assets are increasingly being used for legitimate investment, but they can also be exploited for illicit flows if left unchecked. Regulation will help Zimbabwe harness innovation while protecting the integrity of the financial system.”
Ms Kadonzvo added that stronger controls would also enhance Zimbabwe’s credibility with international partners and investors.
“As the country prepares for the next round of ESAAMLG (Eastern and Southern Africa Anti-Money Laundering Group) mutual evaluations in 2026, compliance with global standards will be closely scrutinised. The reforms send a positive signal,” she said.
The National Risk Assessment exercise has already influenced policy direction, with sectors such as car dealerships, real estate, precious metals and stones identified as carrying higher money laundering risks. Financial institutions, on the other hand, were assessed as having generally lower risk levels, reflecting improved compliance frameworks.
The Government has committed to a continuous review of legislation to align with the intergovernmental entity, the Financial Action Task Force (FATF)’s standards, while strengthening enforcement capacity across regulatory bodies.
The FATF leads global action to tackle money laundering, terrorism and proliferation financing.
The authorities are clear about their message; innovation will be supported, but not at the expense of stability or transparency.
“Zimbabwe is trying to strike a balance,” said Mr Madziva. “Encouraging digital growth while tightening controls is the right approach. If implemented effectively, it will strengthen confidence in the financial system and support long-term economic growth.”
As digital finance becomes more embedded in everyday transactions, the success of these reforms will be measured by how well they protect consumers, deter financial crime and sustain investor confidence, key ingredients for Zimbabwe’s broader economic transformation agenda.
The Reserve Bank’s Financial Intelligence Unit has been directed to lead the development of a comprehensive regulatory regime aligned with regional and international best practice.
