Zimbabwe slashes banking fees

Government has approved sweeping reductions in licences, permits and fees across the financial services sector in a move aimed at dismantling what it describes as "hidden costs" and restoring confidence in formal banking systems.

For years, high bank charges have discouraged low-value transactions and pushed millions of Zimbabweans to operate outside the formal financial sector, relying instead on cash and informal channels.

Speaking at a post-Cabinet media briefing earlier this week, Information, Publicity and Broadcasting Services Minister Zhemu Soda said the reforms are designed to streamline regulations and eliminate excessive charges that have burdened consumers.

"Cabinet approved the streamlining of duplicated and overlapping regulatory licences and permits, removed unnecessary levies and fees and lowered unjustifiably high levies and fees," he said.

The new measures include the scrapping or reduction of monthly account maintenance fees for balances below US$100, a move expected to benefit low-income earners and small-scale traders. Charges on transactions under US$5 will also be reduced, while cash deposit fees for both US dollar and ZiG accounts are set to be removed entirely.

In addition, cash withdrawal fees will now be capped at 2%, providing relief to customers who previously faced steep charges when accessing their funds. Authorities have also indicated that account opening fees will be reviewed downward to make it easier for more people to enter the formal banking system.

The reforms are part of broader efforts to promote financial inclusion and rebuild trust in Zimbabwe's banking sector, which has struggled with low uptake amid persistent economic challenges and public scepticism.

Analysts say lowering the cost of banking could encourage greater participation in formal financial systems, improve savings culture and enhance transparency in transactions.