Published: 17 June 2014

Zimbabwe's mobile financial transactions grew by more than 55 percent in May reflecting confidence by the banking public in using the plastic money system.

According to the Reserve Bank of Zimbabwe weekly economic highlights, mobile transactions grew by 55,6 percent to $87 million in May from $56  million the previous month, while automated teller machines  transactions surged 46 percent from $50 million to $73 million in April this year.

However, the central bank says financial transaction proceeds through the real time gross settlement (RTGS) system declined by 17 percent in May to $812 million from $853 million.

Zimbabwe National Chamber of Commerce economist Kipson Gundani says the drop in financial transactions in April is also a reflection of the subdued revenue inflows within the economy.

"We are really confident of a rebound in the RTGS as we seek to consolidate more funds," Gundani said.

The central bank says lending rates for corporate clients also increased to more than 9,29 percent during the month under review due to a cautious approach to lending by banks on the back of a rise in non-performing loans.
- zbc

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