Yesterday the Government of Zimbabwe issued a statutory instrument banning Ecocash cash-in and cash-out transactions as it accused agents of carrying out speculative activities that were leading to the downfall of the Zim Dollar. Econet says it opened ewallet and ecocash systems as a way to help ease the cash shortages in the country. At present more than 93% of Zimbabweans and a big chunk of businesses rely on ecocash for transactions and as a banking system.
Econet Wireless, the operators of ecocash platform has approached the High Court seeking a relief order arguing that the directive may result in its mobile money platform shutting down completely in order to process the removal of the cash-in and cash-out functionality. This will result not only in loss of business but also massive disruption of the day to day lives of the transacting public as well as businesses that are relying on it.