'Executives externalizing cash'

First Mutual Holdings Limited CEO Douglas Hoto has accused executives and companies of siphoning money out of the country, further exacerbating the cash crisis.

In an interview on Friday, Hoto said there was a growing trend where companies were making profits but shipping it out of the country clandestinely.

Hoto said business leaders, senior bankers and government should take the first step by depositing their money in banks before they could convince ordinary people to do likewise.

Analysts say depositors have lost confidence in the banking sector evidenced by them shunning the system. The banking sector has made the situation worse by introducing a number of charges that eats into deposits.

This has been further compounded by the low interest rates on deposits which analysts say will not lure the unbanked into the formal system.