On the 28th of February 2025, the Minister of Finance, Economic Development and Investment Promotion through Statutory Instrument 17 of 2025, promulgated The Banking (Money Transmission, Mobile Banking, and Money Interoperability) (Amendment) Regulations, 2025 (No.1). These regulations were made in terms of Section 81 of the Banking Act [Chapter 24:20]. Further, section 81 (2) (g4) states that regulations in terms of Subsection (1) may provide for the regulation, control and licensing of persons who provide money transmission services and mobile banking services.
For Banks, companies in mobile banking, money transmission services and fintech’s currently operating or seeking to enter the Zimbabwean market, understanding the regulatory landscape is crucial. The regulations by the Minister significantly alters the application process and fee structures for payment service providers. These changes have a direct impact on international companies, foreign investors, and local financial institutions interested in offering money transmission and mobile banking services. This article explores the key provisions of S.I. 17 of 2025 and provides insights on how financial companies, fintech’s, and money transmission service providers can navigate the regulatory process in Zimbabwe, ensuring smooth market entry and compliance.
Key Amendments to the Banking Regulations
The promulgation of S.I. 17 of 2025 amends the previous S.I. 80 of 2020, which governed money transmission, mobile banking, and interoperability services in Zimbabwe. The major change lies in the amendment of the First Schedule, which directly affects the licensing fees and procedural requirements for new payment service providers entering the Zimbabwean market. For international companies and investors, understanding the new fee structures and licensing process is vital to ensure compliance and avoid potential delays in market entry.
Updated Fee Structure for Payment Service Providers
The revised regulations provide for fees in United States Dollars (USD). The following are the key fee provisions outlined in the amended regulations:
- Application Fee: The fee for applying for a new Payment Service Provider license is now set at USD$5,000.00. This fee applies to all companies seeking to establish themselves as payment service providers in Zimbabwe. For international fintech companies or financial institutions looking to expand into the market, this is the initial cost to begin the licensing process.
- Annual License Fee: The annual license fee for payment service providers is 2% of the company’s gross turnover. However, the fee is capped at USD$50,000. This means that regardless of the company’2s turnover, the maximum amount payable annually for the license will not exceed USD$50,000. This tiered approach to fees makes the licensing structure scalable and adaptable to companies of various sizes, including large fintech firms and emerging startups.
The Licensing Process: A Key Consideration for International Firms
The application process for obtaining a payment service provider license in Zimbabwe is handled by the Reserve Bank of Zimbabwe (RBZ). This process is governed by the Framework for the Recognition of Payment Systems, which was established by the RBZ in 2016. Under the framework, non-bank institutions seeking to offer payment services in Zimbabwe must partner with a local financial institution that is authorized to offer banking services.
This requirement means that international fintech’s and payment service providers must identify and collaborate with a local bank or financial institution to complete their licensing application. The application for recognition must be submitted to the RBZ with the support of the local partner, which is a critical step in the process.
The Banking regulations represents a critical step forward in the development of Zimbabwe’s financial and payments infrastructure. For international fintech’s, payment service providers, and money transmission companies, understanding the regulatory environment and the fees involved in securing a license to operate is essential.
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Read the original publication at Muvingi Mugadza
