Bank savings up 8 per cent in Zimbabwe

Dec 31, 2015

However, saving culture remains weak, experts say.

Bank savings grew eight per cent in Zimbabwe during the first ten month of 2015, according to new figures from the country's central bank.

They reached $2,57 billion (€2.35 billion) between January and October, up from $2,38 billion over the same period a year ago.

However, analysts quoted by The Herald say that despite these encouraging figures, Zimbabwe's saving culture remains weak due to a lack of confidence and ressources, poor returns on savings and high bank charges.

Economist Dr Gift Mugano said banks should increase financial depth by including other financial products such as insurance and by tapping into non-traditional markets.

"Our economy is largely informal. As long as this sector is informal, the money will remain in the informal sector. We must also remember that savings are a function of income (…) Income can only be increased through raising productivity and competitiveness. As we go into 2016, this should be our area of focus," he added.

According to figures from the Reserve Bank of Zimbabwe, 76 per cent of the Zimbabwean population does not have access to banking services.ADNFCR-2976-ID-801809080-ADNFCR