Mukuru reigns supreme in Zimbabwe

Zim Now Writer

Mukuru Money Transfer has cemented its position as the kingpin of Zimbabwean remittances, according to the Reserve Bank of Zimbabwe. The company facilitated over half of the $823 million sent to the country in the first five months of 2023, a staggering 16% increase compared to the same period last year.

This dominance can be attributed to several factors. Zimbabweans, wary of the local currency's history of instability during a six-year experiment, have a strong preference for US dollars. Mukuru caters to this demand by offering cash-only delivery, a feature not available with all competitors. Furthermore, the growing diaspora population continues to send financial support back home, further inflating remittance figures.

"The demand for dollars is massive in Zimbabwe," says Ross Martin, Commercial Manager for Africa at Travelex Ltd. He acknowledges Mukuru's leadership role, highlighting that "much of the US$1.9 billion in remittances sent last year were channeled through Mukuru." While competitors like Mama Money and hellopaisa hold a share of the market, Mukuru remains the clear frontrunner.

Mukuru CEO, Andrew Jury, emphasizes the importance of cash availability in the African fintech landscape. "If you want to be relevant," he states, "you have to have these strong on-and off-ramps to cash." This philosophy aligns perfectly with Zimbabwe's current economic climate.

However, a dark cloud hangs over this success story. Targeted armed robberies have plagued the money transfer business, with Mukuru being disproportionately affected. Reports indicate hundreds of thousands of dollars were stolen between 2022 and 2023, raising concerns about the safety of these cash-based transactions.