REGULATION | South African Remittance Fintech, Mukuru, Granted Deposit License in Zimbabwe, Targets Rural Population

South African fintech, Mukuru, has announced that it has received deposit-taking microfinance institution (DTMFI) licence in Zimbabwe.

Founded in 2004 as a remittance service servicing African migrants in the United Kingdom, Mukuru has since expanded to offer a range of services in African countries like Zimbabwe.

According to the firm, the new license will allow it to expand its efforts to drive financial inclusion in the country, particularly among disadvantaged populations like small and medium-sized businesses, individuals with disabilities, women, youth, and rural communities.

“We are excited to leverage our extensive network and digital capabilities to further empower underserved communities – particularly SMEs, women, youth, people with disabilities and rural populations – and drive greater financial inclusion across the country,” said Andy Jury, CEO of Mukuru’s Group.

Jury added that Mukuru is ideally suited to close the divide between formal and informal financial services in Zimbabwe.

“Relevant financial inclusion depends on the uptake of products and services. To this end, Mukuru’s reputation as a reliable financial service provider is expected to support the building of customer trust and drive the adoption of digital offerings,” said Jury.

Mukuru, which recently launched a new mobile money wallet in neighboring Malawi, notes that rural Zimbabwe, home to 63% of the population, experiences the lowest levels of financial inclusion.

With 20 years of experience in Zimbabwe’s financial services sector, the organization has managed to acquire over three million loyal customers. Its reliable and extensive network, enhanced by digital capabilities, includes 250 owned access points, 40% of which are in rural areas.

Additionally, Mukuru collaborates with over 500 partner access sites spread across Zimbabwe.

Doug Tait-Knight, CEO of Mukuru Zimbabwe Financial Services, highlighted the benefits the new license accords their business.

“DTMFI service offerings cut out travel costs and enhance secure and inclusive practices as money does not need to be collected.

Currently, more than 90% of people who receive remittances cash them out and so we are well-positioned now to help them along their digital financial inclusion journeys.

Our DTMFI licence will enable us to deliver innovative digital solutions that address the specific needs of our customers, from those in wheelchairs who struggle to access cash from ATMS, to small business owners seeking to grow their enterprise.”