EcoNet Wireless Zimbabwe (Econet), a key telecom business controlled by Zimbabwe’s richest man, Strive Masiyiwa, has halted trading in the Zimbabwean dollar (ZWL) across its platforms. This decision comes as the country prepares to introduce the ZiG, a new currency backed by a basket of foreign currencies and gold.
The news comes following the Reserve Bank of Zimbabwe Governor John Mangudya’s monetary policy statement on Friday, April 5, 2024. During a press conference in Harare, Mangudya announced the ZiG (Zimbabwe Gold), which has an initial exchange rate of 13.56 per US dollar.
Furthermore, a new benchmark interest rate of 20% was set to tackle the country’s two-decade economic problems. This replaces the previous rate of 130 percent, which was the highest globally. Governor Mangudya confirmed that existing ZWL balances will be immediately changed to ZiG by banks.
“We would like to advise our valued customers that we are currently in the process of configuring our systems to allow the changeover from the ZWL currency to the new ZIG currency in compliance with Statutory Instrument (SI) 60 of 2024,” according to a press release issued by the company. This ensures compatibility with the new currency on Monday, April 8, 2024.
The telecom giant answered customer worries about pre-paid airtime and data bundles, indicating that bundles acquired prior to the ZWL suspension will stay valid until they expire. Throughout the transition, main account balances will be transferred to ZiG at the current exchange rate.
Econet Zimbabwe, a subsidiary of the Econet Group led by Strive Masiyiwa, is a diversified telecommunications company with over two decades of operational experience. The company has more than 14 million subscribers and operates in Africa, Europe, South America, and East Asia.
Earlier this month, the global telecommunications company announced ambitions to merge multiple organizations under its roof. This strategic restructure, which includes the company’s mobile money subsidiary EcoCash, aims to improve operating efficiency and provide clients with a broader product selection. The move demonstrates Econet’s intention to strengthen its position in the financial technology (fintech) industry.
Strive Masiyiwa, Zimbabwe’s wealthiest businessman and a notable name among the world’s Black billionaires with an estimated net worth of $1.8 billion, owns a large 52.85% interest in Econet Zimbabwe.