WorldRemit is withdrawing it’s bank transfer services to Zimbabwean banks with effect from 29 June 2022.
WorldRemit has issued a statement today (15 June 2022) informing it’s valued services users that they have decided to remove bank transfers from their services in Zimbabwe. They mentioned “From 29/06/2022, you will not be able to send money to bank accounts in Zimbabwe.”
In the statement issued, they mentioned that the reason for withdrawing it’s bank transfer services is they believe they cannot provide best quality services in the prevailing banking system in Zimbabwe.
“At WorldRemit, we pride ourselves on offering the best possible service to our customers. Sometimes that means removing services where we don’t believe we can provide the best-quality service or the widest range of options for you.”
The withdrawal of WorldRemit services from Zimbabwe will negatively impact on the economic growth and shows that the investor confidence in the country continues to dwindle.
The government will loose revenue in the taxes as people will resort to using the ‘fly by night’, informal money transfer services that are not regulated.
In a discussion with Emmanuel Sibanda a Zimbabwean who resides in South Africa, he mentioned that for the Zimbabweans in the diaspora it becomes costly to fund their business.
He also added, “it becomes costly and risky for citizens to remit cash back home as they may resort to cheap remittance services, that may tend to be expensive as the people may loose their money”.
However, WorldRemit did not withdraw other alternative money transfer services including cash pickup, mobile money and airtime.
Taking note that the world remit has left other options for sending money, the withdrawal of bank transfer services does not affect the common people as they will go to cash pickup points. Therefore black market foreign currency may spike since the banking confidence is at its lowest.
The withdrawal might be a result of the instability on the currency market in Zimbabwe or weariness of the forever changing financial policies.