Business / Companies
Econet engages RBZ to restructure EcoCash levy
19 May 2014 at 16:34hrs | Views
Econet says it is in the process of engaging the Reserve Bank of Zimbabwe so that it can levy the Ecocash mobile money transfer tariff on the sender only.
This will mean that the person receiving the money will not pay anything but get the full amount sent to them.
Giving oral evidence to the parliamentary portfolio committee on information and communication technology (ICT), Econet Services chief executive Darlington Mandivenga said the tariff is regulated by the central bank.
"The tariff is regulated by the central bank and there is an option where we can actually levy the whole charge on the sender. We are discussing this with the RBZ. This is because the money is usually coming from urban areas to the rural areas where the consumers need to receive the full amount sent to them," he said.
Consumers on the Ecocash platform have been complaining that it is too expensive since the tariff is levied on both the sender and the receiver making the service more expensive in Zimbabwe than in other countries. Mandivenga said consumers would be able to choose the option they want to use on sending their money.
He added that the fee was not benefiting Ecocash but were meant to ensure that dealers remain viable.
Asked why Econet had refused to open the Ecocash platform to other network operators, Mandivenga said this was meant to keep the service in line with the Anti-Money laundering regulations.
"When customers register for Ecocash, we do what we call ‘know your client' and we require a copy of their national identity document and their physical address so that we can keep track of customers. However, we do not know if the other operators ask the same of their clients," he said.
He said the company had also engaged the other network operators on how they can work with the information they provide so that the Ecocash service can be used across all networks.
This will mean that the person receiving the money will not pay anything but get the full amount sent to them.
Giving oral evidence to the parliamentary portfolio committee on information and communication technology (ICT), Econet Services chief executive Darlington Mandivenga said the tariff is regulated by the central bank.
"The tariff is regulated by the central bank and there is an option where we can actually levy the whole charge on the sender. We are discussing this with the RBZ. This is because the money is usually coming from urban areas to the rural areas where the consumers need to receive the full amount sent to them," he said.
He added that the fee was not benefiting Ecocash but were meant to ensure that dealers remain viable.
Asked why Econet had refused to open the Ecocash platform to other network operators, Mandivenga said this was meant to keep the service in line with the Anti-Money laundering regulations.
"When customers register for Ecocash, we do what we call ‘know your client' and we require a copy of their national identity document and their physical address so that we can keep track of customers. However, we do not know if the other operators ask the same of their clients," he said.
He said the company had also engaged the other network operators on how they can work with the information they provide so that the Ecocash service can be used across all networks.
Source - BH24
