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Reserve Bank of Zimbabwe (RBZ) Governor Dr John Panonetsa Mangudya has said it is the duty of central Banks worldwide to develop National Financial Inclusion Strategies (NFIS) as Key drivers of Economic Growth.Dr Mangudya said this at the launch of the National Financial Inclusion Strategy 2 ( NFIS 2 ) by Government to further entrench the use of financial products in the informal sector to attain the objectives of the National Development Strategy 1 (NDS 1) so as to assist those informally employed who make a big chunk of the Zimbabwean Economy almost 90%, become more successful.
“The global trends show a strong focus of central banks in the development of national financial inclusion as a key driver of sustained and balanced economic growth which helps reduce inequality and poverty. Today’s launch is a testimony of the financial inclusion journey that we started under the first national financial inclusion launched in 2016-2021.”
This journey to develop the strategy involved an extensive collaborative process and significant reflection and consultation with stakeholders who include vendors and Entrepreneurs who are informally employed amongst many others.
The Governor of the Reserve Bank said financial inclusion remained a key priority of RBZ in fostering sustainable and broad-based growth that promoted shared prosperity and opportunities for everyone who seeks gainful employment through the informal sector.
The Reserve Bank of Zimbabwe boss added,
“Thus, financial inclusion plays a critical role in the creation of an inclusive economy where all economically active Zimbabweans have an opportunity to create wealth, reduce poverty, build resilience towards unexpected shocks as well as participate in the economic development of our country.”
Initially in his address, the Reserve Bank of Zimbabwe Governor said the launch of the NFIS II came at a time when the monetary and fiscal policy measures put in place by the Government and apex bank had brought stability to the economy as evidenced by the fall of inflation in four straight consecutive months.
Dr Mangudya however warned those who want to benefit from arbitrage stating,
“We know that there are still some out layers out there who benefit from arbitrage as a business or industry, and we are still going for them. We know there are few whose job is just to make money from arbitrage.
Without mincing his words, the Reserve Bank of Zimbabwe Governor not only indicated that his financial Intelligent unit will go those bent on reversing the gains made by the central bank but invited everyone to join in,
“But in this national financial inclusion, we shall be going for them through either exchange control or the Financial Intelligence Unit and even ourselves at RBZ to ensure that at least they also come and join us when we partake in the national financial inclusion strategy.
Governor Mangudya mentioned the journey during the implementation of NFIS I had its own challenges amid unexpected shocks that included the Covid-19 pandemic and the Government and policymakers managed to stay the course in the achievement of financial inclusiveness in the economy.
“Covid-19 has made inclusivity more urgent. The lack of resilience affected everyone and everywhere but was more pronounced in women, micro, small and medium enterprises, smallholder farmers, and the poor. As you will be aware, upon the expiry of the first national financial inclusion strategy, two Finscope surveys were commissioned to evaluate progress following the implementation of the NFIS I and to facilitate the development of an evidence-based NFIS II.
“And it is pleasing to note that Zimbabwe registered remarkable progress on the access dimension which continues to play a key role in financial inclusion of the vulnerable and underserved groups including women, youth, micro, small and medium enterprises, people with disability, rural communities, smallholder farmers, pensioners and the elderly,” said Dr Mangudya.
Presenting the country’s journey towards financial inclusion from 2016 to date, Finance and Economic Development Minister Professor Mthuli Ncube agreed with Governor Mangudya that financial inclusion was at the heart of inclusive and sustainable Economic Growth since it facilitated not only the integration of the unbanked into the formal Economy but also the creation of entrepreneurs and small and micro businesses helping alleviate economic inequalities.
Minister Ncube said, this, made the poor less vulnerable to financial shocks.
“I note with a lot of pride and gratification that the NFIS II resonates very well with the Government’s NDS1 which runs from the period 2021 to 2025 whose overarching goal is to ensure high accelerated inclusive and sustainable economic growth, as well as sustaining economic transformation and development towards an upper-income society by 2030.
“As many of you would know, Zimbabwe is a signatory to the United Nations 2030 Sustainable Development Goals and the Declaration on Gender Inclusive Finance.”
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