Published: 20 March 2014

A study has revealed that almost half of Zimbabwean remittance recipients are unbanked.

The study released by the International Journal of Management and Humanity Sciences was based on a survey of 203 Zimbabwean remittance recipients residing in Harare and Bulawayo, and 164 Zimbabwean migrant workers in South Africa and Botswana.

The study found that in Bulawayo and Harare almost 61 percent of remittances where received through formal channels. Banks are the least used formal channel of receiving remittances.

Some of the unbanked recipients interviewed in the survey cited lack of trust in banks, high transaction and monthly charges, failure to meet bank requirements, little or nil interest on deposits as reasons why they do not have bank accounts.

The survey found that when choosing a remittance channel, recipients consider convenience, speed of transfer, and charges levied. The survey also found that a considerable proportion of remitters had no access to banks in host countries, lack of documentation and ignorance of bank services and products were cited as key reasons for failure to access banks.

One of the recommendations that came from the study was that the Zimbabwean government formulate concrete measures of improving financial inclusion, create remittance linked products, pursue mobile cross boarder money transfers, adopt a comprehensive diaspora outreach policy, strive to earn trust and confidence of the diaspora, to establish interbank synergies, remittance databases/websites, and conduct financial literacy campaigns.
- BH24

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