Opinion / Columnist
South Africa Eyes Cashless Future Following Zimbabwe's Digital Economy Lead
03 Sep 2025 at 19:49hrs |
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South Africa is struggling with a surge in violent cash-in-transit (CIT) heists, prompting calls for a cashless economy, a path Zimbabwe has already embraced as a fully digital economy, according to the United Nations. The escalating crisis, marked by loss of innocent lives, has intensified debates about whether reducing physical cash could curb these brazen robberies. Zimbabwe's transformation is offer South Africa both inspiration and critical lessons.
South Africa has witnessed a rise in CIT robberies. A tragic heist on Barry Marais Road in Dawn Park, Ekurhuleni, saw two bystanders killed when assailants bombed a cash delivery vehicle. Similarly, KwaZulu-Natal reported violent attacks in Pietermaritzburg and on the M25 KwaMashu Highway, where robbers used explosives and firearms to loot cash vans. These incidents underscore the allure of cash-laden CIT vehicles. Gauteng Premier Panyaza Lesufi advocates for a cashless system, arguing it could reduce ATM bombings and business robberies, which drive South Africa's high crime rates.
Zimbabwe, recognised by the UN as a digital economy, has shifted dramatically toward cashless transactions, driven by hyperinflation and cash shortages. Mobile money platforms like EcoCash dominate, with over 80% of payments digital, per the Reserve Bank of Zimbabwe. This transition has reduced cash-related crimes and boosted financial inclusion in urban areas. South Africa, inspired by Zimbabwe's model, sees potential in decreasing cash circulation to deter CIT heists. Retailers like Woolworths have tested cashless payments in W-Cafe outlets, signaling a gradual shift despite public debate.
However, South Africa faces challenges in replicating Zimbabwe's digital economy. Research by Diana Bresendale from Stellenbosch Business School shows that 1.8 million informal traders, with 80% lacking bank accounts, rely heavily on cash. This echoes Zimbabwe's rural areas, where digital infrastructure gaps exclude many from cashless systems. South Africa's digital divide, particularly in rural regions, risks alienating cash-dependent communities. Cybersecurity threats, as seen in Zimbabwe's mobile money fraud cases and risks of overspending or technological reliance further complicate the transition.
Despite these hurdles, a cashless economy offers clear benefits. Beyond curbing CIT robberies, it promises transparency, reduced illicit cash flows and stronger tax compliance, as seen in countries like India. Lesufi's push for cashless government services, such as hospitals and licencing centers, aims to set a precedent. Yet, convincing sectors like transport and informal trade remains difficult.
Zimbabwe's UN-recognised digital economy push for the need for robust infrastructure, public education and trust in financial systems. South Africa must address these while navigating its diverse economic landscape. As violent heists claim more lives, the urgency to rethink cash's role intensifies. A cashless future, inspired by Zimbabwe's digital transformation, may not eliminate crime entirely but could significantly reduce the incentives fueling South Africa's CIT robbery epidemic.
Engineer Jacob Kudzayi Mutisi
+263772278161
South Africa has witnessed a rise in CIT robberies. A tragic heist on Barry Marais Road in Dawn Park, Ekurhuleni, saw two bystanders killed when assailants bombed a cash delivery vehicle. Similarly, KwaZulu-Natal reported violent attacks in Pietermaritzburg and on the M25 KwaMashu Highway, where robbers used explosives and firearms to loot cash vans. These incidents underscore the allure of cash-laden CIT vehicles. Gauteng Premier Panyaza Lesufi advocates for a cashless system, arguing it could reduce ATM bombings and business robberies, which drive South Africa's high crime rates.
Zimbabwe, recognised by the UN as a digital economy, has shifted dramatically toward cashless transactions, driven by hyperinflation and cash shortages. Mobile money platforms like EcoCash dominate, with over 80% of payments digital, per the Reserve Bank of Zimbabwe. This transition has reduced cash-related crimes and boosted financial inclusion in urban areas. South Africa, inspired by Zimbabwe's model, sees potential in decreasing cash circulation to deter CIT heists. Retailers like Woolworths have tested cashless payments in W-Cafe outlets, signaling a gradual shift despite public debate.
Despite these hurdles, a cashless economy offers clear benefits. Beyond curbing CIT robberies, it promises transparency, reduced illicit cash flows and stronger tax compliance, as seen in countries like India. Lesufi's push for cashless government services, such as hospitals and licencing centers, aims to set a precedent. Yet, convincing sectors like transport and informal trade remains difficult.
Zimbabwe's UN-recognised digital economy push for the need for robust infrastructure, public education and trust in financial systems. South Africa must address these while navigating its diverse economic landscape. As violent heists claim more lives, the urgency to rethink cash's role intensifies. A cashless future, inspired by Zimbabwe's digital transformation, may not eliminate crime entirely but could significantly reduce the incentives fueling South Africa's CIT robbery epidemic.
Engineer Jacob Kudzayi Mutisi
+263772278161
Source - Engineer Jacob Kudzayi Mutisi
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