“Tax on Poverty”: Banks in Zimbabwe exploiting the poor with inquiry charges

HARARE – Poor Zimbabweans, heavily reliant on mobile banking and traditional financial services for their daily transactions, are facing a “hidden burden” as “exploitative” charges for simple balance inquiries erode their already stretched incomes and undermine efforts to promote financial inclusion in the country.

The motion, moved by Norton MP Richard Tsvangirai in Parliament on Wednesday, argued that these fees are “unnecessarily excessive, exploitative, and place an undue burden on the already economically vulnerable citizens.”

Tsvangirai cited that millions of Zimbabweans rely heavily on these digital platforms for their daily transactions, including salaries, pensions, and remittances.

He stated that a basic service like checking one’s account balance, often free in other countries, has become a “luxury” in Zimbabwe.

He cited examples of mobile money platforms like Ecocash and OneMoney, which reportedly charge around ZiG290 (approximately US0.15 to US0.30) for a USD balance inquiry as of June 2025.

Traditional banks such as CBZ, POSB, and ZB Bank are also said to impose similar fees for mobile or ATM balance checks.

Drawing comparisons to regional practices, Tsvangirai noted that major South African banks like FNB and Capitec offer free balance inquiries via their applications, and Botswana’s mobile banking apps and ATMs do not charge for such services.

He argued that these countries understand the importance of reducing barriers to financial inclusion.

“This charge is not just a fee; it is a tax on poverty,” Tsvangirai stated.

He provided an illustration of a domestic worker earning US$50 per month who might check their balance multiple times to confirm payments, potentially losing nearly a dollar to these charges.

“That is nearly US$1 gone, lost to checking, not spending. That dollar could buy two loaves of bread or pay for a round trip of public transport in some areas. The majority of Zimbabweans using mobile money platforms are the unbanked or low-income earners.

“People who rely on Ecocash, One-Money transfer or ZIPIT Smart, every enquiry charge chips away at their already stretched income.

“This is a hidden burden on the poor. A silent penalty for being careful with money. It undermines financial trust and participation,” Tsvangirai stated.

The motion further noted that these ongoing charges undermine efforts to promote financial inclusion and erode public confidence in the banking system.

It suggested that people are becoming hesitant to check their balances, preferring instead to guess or resort to keeping cash at home, which increases security risks and hinders the move towards a cashless economy.

The motion has recommended that the Ministry of Finance, Economic Development and Investment Promotion “put in place measures which ensure that all banks and mobile money operators cease forthwith the practice of charges on balance inquiries.”

It further called for enforced transparency in service fee structures, benchmarking Zimbabwean banking policies against regional best practices, and urged the Reserve Bank of Zimbabwe to incorporate this issue into its financial inclusion policy review and consumer protection regulations.

“This is not just about fees. It is about dignity, it is about trust and building an economy where even the poorest citizen is treated with fairness,” Tsvangirai stated.

The debate on the motion was adjourned.

In an interview with Nehanda Radio, Tariro Hungwe, a vendor in Warren Park, Harare, echoed the same sentiments saying, “It’s just not fair”.

“It’s just not fair. You can see how hard we work for every dollar, and then the bank takes a piece of it just for me to see if my own money is even there. It feels like we are being punished for trying to manage our small incomes,” she said.

“How are we supposed to save or plan when every little check costs us?

“This is the reason why people choose to sell their products in cash.”