The findings included in the presentation were derived from a demand, supply and regulatory analysis based on the methodology developed by Cenfri, FinMark Trust and UNCDF as part of the global MAP initiative. The demand-side analysis draws from quantitative data provided by the Zimbabwe FinScope Consumer Survey 2011, the Zimbabwe FinScope Consumer Survey 2014, the Zimbabwe MSME Survey 2012 and primary qualitative research. The supply-side and regulatory analysis pulls data from interviews, mystery shopping and a range of industry documents.
The presentation highlighted 7 key drivers impacting upon financial inclusion in Zimbabwe. These included:
- Declining income and employment depressing the use of formal financial services.
- Dutch disease, brought on by a strengthening US Dollar, is driving weak exports and strong imports undermining the productive potential of credit but driving cross-border payments.
- Banks’ contribution to the retail financial market is declining requiring them to re-think their business models to regain ground.
- Payments and mobile money platforms now dominate the retail financial market landscape.
- Cross-border retail money flows are major growth area for Zimbabwe and fundamental for the economy and households to survive.
- Informal financial services are soaring as communities act collectively to survive.
- Private human capital development, specifically financial services to support education, remains a key priority for most Zimbabweans
The feedback and comments from the workshop will be incorporated into the final MAP diagnostic report which will be available later in 2016.