FINANCIAL REFORM: Cabinet Slashes Bank Fees and "Hidden Costs" to Boost Formal Inclusion

Minister Zhemu Soda

HARARE – In a decisive move to restore public confidence in the formal banking sector, the Cabinet has approved a comprehensive overhaul of the financial services fee structure. The reforms aim to eliminate "hidden costs," dismantle overlapping regulatory hurdles, and encourage millions of Zimbabweans to transition from cash-based savings to formal accounts.

Addressing a post-Cabinet media briefing, the Minister of Information, Publicity, and Broadcasting Services, Hon. Zhemu Soda, emphasized that the current cost of doing business within the financial sector was unjustifiably high due to duplicated permits and excessive levies.

“Cabinet approved the streamlining of duplicated and overlapping regulatory licences and permits, removed unnecessary levies and fees and lowered unjustifiably high levies and fees,” Minister Soda confirmed.

The new measures target the "pain points" of small-scale depositors and micro-entrepreneurs:

Service Category	New Policy / Cap
Account Maintenance	Scrapped or reduced for balances below US$100
Small Transactions	Lowered charges for all transactions under US$5
Cash Deposits	Zero fees for both USD and ZiG accounts
Cash Withdrawals	Strictly capped at 2%
Account Opening	To be reviewed downward across all institutions

For years, high transaction costs often exceeding the value of the transaction itself have fueled the informal market. By removing cash deposit fees and capping withdrawals, the government is making it more "affordable" to keep money within the banking system.

This move is expected to:

1. Increase Bank Deposits: Encouraging the informal sector to deposit surplus cash without fear of immediate erosion via fees.

2. Boost ZiG Adoption: By lowering barriers to ZiG accounts, the government is incentivizing the use of the local currency for daily micro-transactions.

3. Enhance Liquidity: Reducing "hidden costs" ensures that more money stays in the pockets of consumers, stimulating domestic demand.

While commercial banks may see a short-term dip in "non-interest income," analysts at the Southerton Business Times suggest that the increased volume of depositors and transactions will eventually lead to a more sustainable and liquid financial ecosystem. The "volume-over-margin" approach is a necessary pivot for a 2026 economy striving for Vision 2030 status.

Zimbabwe bank fee cuts 2026