THE Consumer Council of Zimbabwe (CCZ) says local banks should promptly review their pricing models and follow ethical business practices that are compliant with the Banking Act and the Consumer Protection Framework.
In its analysis of the Reserve Bank of Zimbabwe (RBZ)’s mid-term monetary policy statement released last month, the consumer watchdog said bank charges in Zimbabwe were still prohibitive, especially when compared to what regional financial institutions were charging.
Banks charge between 1% and 2% for interbank transfers, internal transfers and bill payments among others.
They also charge 2,5% and 3% for business and business withdrawals, respectively.
CCZ executive director Rosemary Mpofu said she appreciated the action taken by the central bank and the Bankers Association of Zimbabwe in monitoring bank charges.
However, she said the charges should be aligned with that of the regional peers.
“You will note that foreign currency deposits accounted for 88% of total deposits as at 30 June 2023, indicating the dominance of foreign deposits in the market,” Mpofu said in the report.
“As such, CCZ sees the need for the banking sector to review its pricing model in line with these developments since the currency mixture has dramatically changed, taking cognisance of the relative exchange rate movements in the economy.
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“There is a need for banks to immediately review the current pricing model and adhere to fair business practices in line with the Banking Act, and the Consumer Protection Framework.
“There is also a need to consider whether to benchmark our charges with that of the region or with those countries whose transactions are dominated in the USD (United States dollar) or currencies of almost equivalent value to the USD,” she said.
Mpofu commended the tight monetary stance pursued by the central bank during the first half of the year and its continuation to sustainably anchor inflation and exchange rate expectations.
However, Mpofu said prices in the market have not been adjusting proportionately to the appreciation of the local currency.
“It is recommended that a taskforce be set up composed of key stakeholders including the President's Office, central bank, Ministry of Industry and Commerce, the CCZ and sectoral regulators among other members,” she said.
The organisation also commended the Finance and Economic Development Ministry for fiscal consolidations, which are augmenting RBZ efforts in maintaining the inflation and exchange rate stability.
“It has been observed that liquidity challenges in the market continue to worry consumers as they are unable to access the RTGS (real-time gross settlement) required for transacting,” Mpofu said.
"In addition, retailers are running short of customer change and this has seen customers being forced to buy other products, which were not budgeted for."
Mpofu said liquidity challenges were limiting consumers' choices as they are forced only to buy from supermarkets with change.
