RBZ, Ecocash tension intensifies

The Cassava Smartech Zimbabwe Limited, a subsidiary of Strive Masiyiwa’s Econet Wireless has over the past years gained a systemic influence on the nation’s payments system in which electronic transactional activities amounted to RTGS$ 87 billion between January and May 2019.

Following the ban on all cash in, cash-out transactions by the Reserve Bank of Zimbabwe which came after Masiyiwa told the RBZ to take the blame for the cash shortages, Econet threatened to shut down the entire Ecocash system.

However, the Reserve Bank of Zimbabwe is aware of the imminent cash crises that will be triggered if Econet carries out its threat.

RBZ is also aware that the Ecocash system is Cassava’s main source of revenue, shutting it down will bring it to its knees.

As the RBZ-Econet wars intensify, the pressure is increasing on the ailing economy creating arbitrage opportunities for people and regulators.