Fintech seen widening financial access for Zimbabwe’s informal sector

Industry leaders say fintech can expand financial access in Zimbabwe by lowering transaction costs, improving credit for informal traders and boosting digital payments (image source)

Fintech innovations are emerging as a critical lever to broaden financial market access in Zimbabwe by lowering transaction costs, expanding digital payments and unlocking credit channels for consumers and micro-enterprises historically excluded from formal banking.

Old Mutual Zimbabwe chief executive Sam Matsekete says fintech should be viewed “not merely as technology but an enabling infrastructure” capable of connecting informal economic actors to financial services that improve resilience and stimulate inclusive growth.

Digital rails extending reach

Digital wallets, agency banking and mobile payment rails reduce reliance on brick-and-mortar branches and extend services to peri-urban and rural communities. Faster onboarding using digital identity allows informal traders, women and youth to build credible transaction histories that lenders can score, opening the door to small credit lines with appropriate risk pricing — particularly vital for seasonal farmers and micro-retailers.

Embedded finance is also gaining traction as payments and credit become integrated directly into merchant and e-commerce platforms. Products such as buy-now-pay-later, invoice financing and instant settlement smooth working-capital needs and reduce the need for large cash reserves, helping merchants increase turnover.

Remittance fintechs are additionally cutting fees and accelerating diaspora inflows — a trend analysts say boosts both household consumption and local investment.

Savings and insurance adoption rising

Fintech is also promoting safety nets through automated savings tools tied to mobile wallets and micro-insurance products tailored to consumer patterns. The digital delivery of social transfers and youth grants improves transparency and reduces leakages in welfare programmes.

Data-driven product design — including weather-indexed insurance and merchant-specific financing — is seen as driving adoption and improving product-market fit.

Regulation and literacy are key

Analysts caution that the expansion must be anchored in robust infrastructure and well-calibrated oversight. Policy priorities include:

• Strong consumer protection and cybersecurity

• Interoperability between bank and wallet channels

• Clear e-money licensing

• Proportionate AML monitoring

• Affordable and reliable internet

Digital literacy support, merchant onboarding and device subsidies are also recommended to reduce usage barriers for vulnerable segments.

Industry players argue that with coordinated public-private action, fintech can shift Zimbabwe from an exclusion-heavy system to one that materially strengthens micro-economic resilience and sustained growth.