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Zimbabwe govt rolls out POS machines to formalise informal businesses
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The Zimbabwean government has commenced a nationwide programme to integrate unregistered businesses into the formal economy by distributing point-of-sale (POS) machines, which are now a prerequisite for obtaining operating licences.
Authorities are also working on simplifying business processes to encourage compliance.
During the first Cabinet meeting of the year, President Emmerson Mnangagwa underscored the need to ensure that businesses are not burdened by prohibitive regulations and excessive administrative fees.
As part of the initiative, local authorities have been directed to grant or renew operating licences only for businesses with functional POS machines and registered bank accounts. This move is expected to enhance the use of the Zimbabwe Gold (ZiG) currency, boost digital transactions, increase tax collections, and promote financial inclusion.
A recent survey by the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) confirmed that most business centres nationwide have the necessary infrastructure to support POS machines, including power and internet connectivity. In areas where connectivity or power supply is unreliable, businesses will receive offline-compatible POS machines that do not require a constant network connection, ensuring remote areas are not excluded.
Formalising Businesses and Enhancing Tax Collection
Speaking to The Sunday Mail, Reserve Bank of Zimbabwe Governor Dr. John Mushayavanhu highlighted the importance of the initiative in formalising businesses and improving tax collection.
"The broader goal is to ensure that all businesses are connected to the formal banking system through the use of POS machines," said Dr. Mushayavanhu.
"The number of machines to be released depends on the need for full coverage of businesses operating in Zimbabwe. The Reserve Bank is working with banking institutions through the Bankers Association of Zimbabwe and other service providers to ensure POS gadgets are available to all businesses.
"The Reserve Bank assures the nation that all businesses will be provided with POS machines as needed, with systems in place to meet demand."
Dr. Mushayavanhu also noted that a mechanism has been established for small businesses to share POS machines.
"Some small mobile POS machines can be shared among businesses. In this regard, small businesses will be provided with mobile POS machines, each linked to a unique bank account code, allowing multiple businesses to use the same device," he explained.
Banks and Local Authorities Driving Implementation
Banks have already started issuing POS machines to all business account holders, both new and existing, as they register or renew their businesses with local authorities and public enterprises.
"In line with the Reserve Bank's Monetary Policy Statement of February 6, 2025, banks were directed to provide POS machines to all business account holders, whether new or existing," Dr. Mushayavanhu stated.
"For informal traders, the Reserve Bank is collaborating with local authorities to ensure that all applicants for trading licences—individuals or corporates—have a bank account and a functional POS machine at the point of licensing or renewal.
"This process has started and will continue as banks roll out POS machines to all new and existing businesses as they renew their operating licences with local authorities and public enterprises."
Dr. Mushayavanhu emphasized that integrating POS machines into informal trade would enable transactions to be processed through standard banking channels and simplify revenue collection.
Ensuring Infrastructure and Compliance
The success of this initiative depends on adequate infrastructure, including power and connectivity.
"We are pleased that local authorities and Potraz have confirmed that most business centres have the necessary infrastructure to support POS machines," said Dr. Mushayavanhu.
"Many small businesses also use solar power, which can support POS machines. Importantly, some POS machines do not require network connectivity and can work offline, making them suitable for remote areas."
Additionally, the Reserve Bank is collaborating with mobile network operators and service providers to ensure that POS services are widely accessible.
The initiative is expected to expand financial inclusion, particularly in rural, marginalised, and outlying areas.
To ensure compliance, the Financial Intelligence Unit will strengthen surveillance and monitoring efforts to track the use of POS machines and ensure businesses align with expected electronic sales volumes in their respective areas.
Authorities are also working on simplifying business processes to encourage compliance.
During the first Cabinet meeting of the year, President Emmerson Mnangagwa underscored the need to ensure that businesses are not burdened by prohibitive regulations and excessive administrative fees.
As part of the initiative, local authorities have been directed to grant or renew operating licences only for businesses with functional POS machines and registered bank accounts. This move is expected to enhance the use of the Zimbabwe Gold (ZiG) currency, boost digital transactions, increase tax collections, and promote financial inclusion.
A recent survey by the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) confirmed that most business centres nationwide have the necessary infrastructure to support POS machines, including power and internet connectivity. In areas where connectivity or power supply is unreliable, businesses will receive offline-compatible POS machines that do not require a constant network connection, ensuring remote areas are not excluded.
Formalising Businesses and Enhancing Tax Collection
Speaking to The Sunday Mail, Reserve Bank of Zimbabwe Governor Dr. John Mushayavanhu highlighted the importance of the initiative in formalising businesses and improving tax collection.
"The broader goal is to ensure that all businesses are connected to the formal banking system through the use of POS machines," said Dr. Mushayavanhu.
"The number of machines to be released depends on the need for full coverage of businesses operating in Zimbabwe. The Reserve Bank is working with banking institutions through the Bankers Association of Zimbabwe and other service providers to ensure POS gadgets are available to all businesses.
"The Reserve Bank assures the nation that all businesses will be provided with POS machines as needed, with systems in place to meet demand."
Dr. Mushayavanhu also noted that a mechanism has been established for small businesses to share POS machines.
"Some small mobile POS machines can be shared among businesses. In this regard, small businesses will be provided with mobile POS machines, each linked to a unique bank account code, allowing multiple businesses to use the same device," he explained.
Banks and Local Authorities Driving Implementation
Banks have already started issuing POS machines to all business account holders, both new and existing, as they register or renew their businesses with local authorities and public enterprises.
"In line with the Reserve Bank's Monetary Policy Statement of February 6, 2025, banks were directed to provide POS machines to all business account holders, whether new or existing," Dr. Mushayavanhu stated.
"For informal traders, the Reserve Bank is collaborating with local authorities to ensure that all applicants for trading licences—individuals or corporates—have a bank account and a functional POS machine at the point of licensing or renewal.
"This process has started and will continue as banks roll out POS machines to all new and existing businesses as they renew their operating licences with local authorities and public enterprises."
Dr. Mushayavanhu emphasized that integrating POS machines into informal trade would enable transactions to be processed through standard banking channels and simplify revenue collection.
Ensuring Infrastructure and Compliance
The success of this initiative depends on adequate infrastructure, including power and connectivity.
"We are pleased that local authorities and Potraz have confirmed that most business centres have the necessary infrastructure to support POS machines," said Dr. Mushayavanhu.
"Many small businesses also use solar power, which can support POS machines. Importantly, some POS machines do not require network connectivity and can work offline, making them suitable for remote areas."
Additionally, the Reserve Bank is collaborating with mobile network operators and service providers to ensure that POS services are widely accessible.
The initiative is expected to expand financial inclusion, particularly in rural, marginalised, and outlying areas.
To ensure compliance, the Financial Intelligence Unit will strengthen surveillance and monitoring efforts to track the use of POS machines and ensure businesses align with expected electronic sales volumes in their respective areas.
Source - The Sunday Mail
