Government has approved a set of measures aimed at strengthening the country’s digital payment ecosystem and facilitating the formalisation of the vast informal sector.
The decision follows a recent study visit to India by a delegation from key government ministries and the Reserve Bank of Zimbabwe, which provided critical insights into effective financial inclusion strategies.
The new policy measures are designed to reduce reliance on cash transactions and integrate Micro, Small, and Medium Enterprises into the formal economy.
A key component of the plan is the establishment of a national database.
“We are putting in place a digital system to register all Micro, Small, and Medium Enterprises in order to come up with a National Database,” the official statement noted.
Additionally, government will review and increase current payment system limits across all platforms to better accommodate the high-volume activities of small businesses.
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To encourage voluntary participation, the measures include incentives for the informal sector.
The plan is focused on “incentivising the informal sector to participate in the formal banking system, reducing reliance on cash transactions through the introduction of simplified Know Your Customer norms, zero-deposit basic savings accounts, and no-cost digital wallets tailored to micro-enterprises.”
Government will also streamline business registration, tax filing, and licensing processes to lower administrative burdens and entry barriers.
Other initiatives approved by Cabinet include creating incentives for existing informal businesses to formalise their operations and launching national campaigns to promote digital financial literacy.
Government also plans to strengthen collaboration with private-sector players.
The official report highlighted a goal of “strengthening collaboration with private-sector players in order to invest in low-cost payment infrastructure, especially in rural and underserved areas.”
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