Publications
Partners
Harare - Cross-border remittance company Western Union has unveiled a partnership with the EcoCash mobile money service from telecoms provider Econet Zimbabwe.
The partnership comes amid a fast-changing industry dominated by mobile money and informal channels.
Earlier this year, Econet said it had over four million EcoCash users.
And in 2013, remittances worth about $1.8bn were transferred to Zimbabwe through formal channels, although experts say the figure for money sent through informal channels could be significantly higher.
The partnership between Western Union and Econet Wireless’ EcoCash platform will then enable expat Zimbabweans in South Africa, the United Kingdom (UK), Australia and Botswana among other countries to send money to mobile money wallets of recipients back home.
"We have been working in the background with Western Union… Zimbabweans in South Africa have been asking for solutions from us and as from today the people in South Africa can send money straight into the EcoCash wallet," said Dr Jimmy Shindi, the chief executive officer for Econet Services International.
Richard Malcom, the Western Union vice president for southern and eastern Africa, said on Thursday that the partnership with EcoCash would help facilitate “financial inclusion in the country - especially in the rural areas with limited formal financial institutions”.
He added that diaspora remittances were important in boosting the Zimbabwean economy that is starved of foreign direct investments (FDI).
Malcom said his company was embracing mobile platforms to keep up with the fast pace of developments in the remittance scene.
Meanwhile, on Wednesday, Western Union’s rival money remittance company, MoneyGram, said it had entered into a partnership with Safaricom’s MPESA mobile money product to grow its agent network in Kenya.
“We believe that the partnership with Moneygram will be positive for Safaricom and will strengthen its money transfer business whilst also providing it with a strong partner that can help it open a new front with its rival in money transfer, Equity Bank,” said Imara Africa Securities yesterday.
