Zimbabwe’s financial services sector is undergoing a sweeping cost overhaul after government scrapped several bank charges, reduced industry levies and moved to streamline regulatory licences, in reforms aimed at lowering transaction costs and widening access to formal financial services.
The measures target long-standing concerns over high banking fees that have burdened consumers and discouraged small businesses and low-income earners from fully participating in the formal financial system.
Acting Finance, Economic Development and Investment Promotion Minister Felix Mhona said the reforms are designed to eliminate inefficiencies while improving affordability and financial inclusion.
“Removal of the following fees: monthly fees for accounts with less than US$100 balances; fees for transactions less than US$5; cash deposit charges for both US$ and ZiG amounts; cash withdrawal fees capped at 2% for both US$ and ZiG; account opening charges,” he said.
The removal of these charges is expected to significantly reduce banking costs for ordinary Zimbabweans, many of whom rely on small-value transactions for daily economic activity.
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Beyond traditional banking, Government has also reduced fees across the wider financial ecosystem, including microfinance institutions, insurance and pension funds, mobile money operators and fintech players.
“Reduction of the fees in the following sub-sectors: micro-finance institutions; insurance and pensions; mobile money; and fintech capital markets,” Mhona said.
Authorities have further moved to address regulatory duplication by consolidating licences and permits, a step expected to lower compliance costs for financial institutions and improve operational efficiency across the sector.
“Streamlining of duplicated and overlapping regulatory licences and permits, removed unnecessary levies and fees and lowered unjustifiably high levies and fees for the financial services sector,” he said.
The reforms form part of broader efforts to improve the ease of doing business and strengthen confidence in Zimbabwe’s financial system by making services more accessible and cost-effective.
Mhona added that the framework remains subject to refinement, with a comprehensive schedule of revised licences, permits and fees expected to be gazetted following further consultations.
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