Banking Publications

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An Assessment of Financial Inclusion Challenges Among Women Vendors at the Bulawayo Vegetable Market
(RSIS, 2024-05-10) Tshuma, N.; Kufa, A.T.; Sibanda, E.; Setoboli, T
In the vibrant markets of Bulawayo, Zimbabwe, where women entrepreneurs thrive, a critical challenge persists: financial inclusion remains low. However, Mobile Financial Services (MFS) digital platforms have the potential to revolutionize access to affordable financial solutions for women entrepreneurs. Our study delved into the experiences of women vendors at the bustling Bulawayo Vegetable Market during the period from 2016 to 2023. Through a descriptive survey design, we aimed to uncover the hurdles faced by these enterprising women as they navigated the realm of MFS. Findings revealed that many women were unaware of the existence and benefits of MFS. The lack of knowledge hindered their participation. Proper documentation essential for accessing financial services remained elusive for some. Without it, women faced barriers in utilizing MFS. Limited education posed a significant obstacle. Basic financial literacy and digital skills were prerequisites for effective MFS adoption. The absence of digital skills impeded women from confidently using mobile platforms for financial transactions. Scarce availability of mobile money agents in the market area restricted women’s access to MFS. To bridge this gender gap and empower women entrepreneurs, we recommend Financial Institutions to Collaborate with MFS providers to offer targeted training programs. These sessions should focus on MFS awareness, digital literacy, and documentation procedures. NGOs Community Initiatives should launch awareness campaigns specifically tailored for women vendors. These campaigns can demystify MFS, emphasize its benefits, and address common concerns. By dismantling these barriers, we can unlock the full potential of MFS, enabling women entrepreneurs to thrive and contribute significantly to sustainable development in Zimbabwe.
An Evaluation of the Usage and Operational Framework of the Real Time Gross Settlement System in the Zimbabwean Banking Sector
(2014) Bhiri, T.; Vhimisai, V.; Innocent Bayai, I.
Payment systems have evolved over the years in tandem with the quantum leap in the volume and value of payment system transactions. Consequentially, the banking sector together with the financial regulatory institutions have developed safe, reliable and robust payment streams such as the Real Time Gross Settlement (RTGS) system. This research seeks to evaluate the usage and operational framework of the Real Time Gross Settlement system in the Zimbabwean banking sector. The cross-sectional survey research design was adopted for this research. The major findings from the research were that the RTGS system is widely available and optimally utilized. There are manual interventions between the RTGS system and core banking systems. It was concluded that there is capacity to synchronize the RTGS system with other payment streams, the RTGS system rules and procedures are not fully implemented by financial institutions and the framework governing the RTGS system is largely comparable to international best practice. Recommendations were that the RTGS system should be synchronized with other electronic payment streams, the adoption and implementation of the Straight Through Processing should be expedited and that there should be an introduction of system availability barometers.
An analysis challenges faced by Zimbabwean micro finance institutions in providing financial services to the poor and informal sector in the dollarised regime
(Global Institute of Research and Education, 2013) Mutambanadzo, Tendekayivanhu; Bhiri, Thomas; Makunike, Smiller
Micro-Finance Institutions (MFIs) play a pivotal role in the provision of services to the financially excluded population , particularly the poor and the informal sector. The study investigated the reasons behind the collapse and under- performance of MFIs in a dollarized regime. A survey research design was adopted targeting all 17 MFIs in Bulawayo inclusive of those that collapsed. The major finding was that MFIs are facing funding challenges. Most of them use limited personal funds to finance their businesses. In addition, the study also revealed that MFIs have poor corporate governance structures. Management Information Systems (MIS) have not been fully exploited. The major conclusion drawn from the study was that lack of funding is the major factor hindering the growth and development of MFIs in Zimbabwe. The main recommendation was that MFIs must be adequately regulated and be encouraged to have suitable governance structures in order to attract funding.
A Comparative Analysis of the Corporate Governance Practices in Multinational and Domestic Banks in Zimbabwe
(Scholarlink Research Institute Journals, 2013) Ndlovu, Milton Webb; Bhiri, Thomas; Mutambanadzo, Tendekayivanhu; Hlahla, Blessing P.
The Zimbabwean banking sector has been characterised by a number of corporate governance disorders. This study aimed at analysing the corporate governance practices by multinational banks in comparison to domestic banks in Zimbabwe. It was hoped that the research would reveal the corporate governance discrepancies between multinational and domestic banks and hence assist the Reserve Bank of Zimbabwe in pursuing its supervisory role as well as bring awareness to stakeholders in the banking industry. The research adopted a cross-sectional survey research design. The target population consisted of all commercial and merchant banks in Zimbabwe. Primary data was gathered through questionnaires and interviews. Secondary data was also analysed in the research. The selection of the banks to be included in the sample employed stratified random sampling to ensure representation from each key group of banks in the sample. The study revealed that the awareness on the importance of sound corporate governance practices was of substandard levels for both bank categories. Domestic banks, in particular, had more shortfalls compared to multinational banks. Results further revealed that domestic banks did not represent shareholders’ interests in their corporate governance practices and their levels of compliance to Reserve Bank of Zimbabwe’s corporate governance requirements was still lacking. Although corporate governance strategies by multinational banks were superior to domestic banks it was established that multinational banks needed to accept local central bank requirements on corporate governance as an engine to enhance their corporate governance strategies.
Informal sector taxation and enforcement in African countries: How plausible and achievable are the motives behind? A critical literature review.
(Open Economics, 2021-06-18) Mpofu, F.Y.S.
Taxation is a fundamental tool for revenue generation, economy building and sustainability, reducing market externalities, regulating trade, stimulating representation and achieving tax justice as well as building state accountability and responsiveness. The informal sector in developing countries has been considered a hindrance to effective domestic revenue mobilisation, hence the rejuvenated focus to bring the sector into the tax baskets. Through a critical literature review, this study sought to identify the varying motivations tabled by the various stakeholders (policymakers, scholars and tax administrators) in literature on the need to administer tax on this sector and to strengthen enforcement and to evaluate the plausibility of these motives critically. Literature search was done through Google scholar and this was also aided by snowballing. The motives were aggregated into five major groups: the magnitude of the sector and revenue implications, growth motive, the governance gains, equity considerations and the boosting of tax morale and compliance in the formal sector. This study, therefore, conducted a profound evaluative analysis of literature on these motivations, pinpointing any voids that future research could address and accordingly sought to contribute to the guidance offered to policymakers on how to improve IS taxation. In order to balance the mobilisation of revenue needs and the sector’s contribution to other government objectives such as those outlined in the United Nations Sustainable Goals 1, 8 and 10 on poverty, decent work and economic growth, and reduced inequalities, governments and policymakers need to make an informed analysis.
Regional financial integration and its impact on banking development: Evidence from Southern African Development Community countries Jonathan.
(2020) Tembo, J.; Makina, D.
The study investigated the impact of regional financial integration on banking sector development with specific focus on the impact of the Southern African Development Community protocols on trade and finance and investment. A total of 14 countries made up the study sample, and the panel cointegration fully modified ordinary least squares model (FMOLS) alongside the generalized method of moments (GMM) were used to estimate the nature of the impact. Study findings showed that regional integration through the protocol on trade had a positive and significant impact on size and efficiency of the banking sector using the FMOLS estimator. GMM estimations for the same variables were largely insignificant. Study findings also pointed to an improvement in global financial integration indicators as a result of the trade protocol, which in turn also contributed to an increase in the level of monetization of regional financial markets. The finance and investment protocol had a positive and significant impact on private sector credit for both estimators and largely insignificant relationship with broad money. The study also observed the complimentary relationship between institutional quality and social capital in the financial development process indicating the importance of policies that strengthen sound legal systems, protect property rights, and enhance the rule of law.
SME Lending: Do Lending Technologies Matter? Sample Evidence from Zimbabwe
(World Review of Business Research., 2013-10) Nyangara, Davis
This paper examines and tests the claim that bank lending technologies are responsible for the low volume of lending to SMEs in Zimbabwe. Based on a survey of directors of SMEs and bank lending officers, tests are conducted to determine if there is any evidence of discrimination against SMEs based on age, management, size, and information attributes. The study reveals that application of uniform lending criteria to SMEs and large corporates does not result in discrimination against SMEs based on age, size, management, or information attributes. Based on this evidence, the study submits that differences in SME lending between foreign and indigenous banks are due to factors other than their lending technologies. The study further provides rationale for collateral-based lending in the SMEs sector in Zimbabwe. The study however questions the static nature of lending technologies used by banks in Zimbabwe, in the wake of high nonperforming loans.
The Impact of External Debt On Foreign Direct Investment in Zimbabwe
(Journal of Business (JoB), 2023-12-31) Muwando, S.; Nzou, A.
Using the framework of capital market and fitness theory, the study assessed the impact of external debt on foreign direct investment in Zimbabwe for the period 1980 to 2016. An Autoregressive Distributed Lag estimation technique was employed on annual data for the period 1980 to 2016 as it suits well small sample size. The results revealed that there is both a short-run and long run relationship between external debt and foreign direct investment. The findings of the study also revealed that current external debt has a positive impact on foreign direct investment inflows. The study concluded that the existence of debt overhang, as a consequence of the accumulation of past external debt stocks, negatively impact on foreign direct investment inflows. The study recommended that the government of Zimbabwe should intensively invest in economic growth-enhancing activities in the agricultural sector, infrastructure sector, education sector, healthcare sector, and technology, and foster a politically conducive environment.
The Informal Sector, the “implicit” Social Contract, the Willingness to Pay Taxes and Tax Compliance in Zimbabwe
(Accounting, Economics, and Law: A Convivium, 2021-01-07) Sebele-Mpofu, F.Y
The growth of the informal sector in African countries has largely been viewed as an escape from regulation and deliberate intention to avoid paying taxes and these views have been widely popularised, ignoring significant details to the disadvantage of realistic tax policy design. Zimbabwe adopted a presumptive tax system for various informal sector categories to enlarge the tax base and increase tax revenues mobilised. However, presumptive taxes have not generated significant revenue. Tax compliance in the informal sector has often been studied from the tax structure design, the deterrence model perspective and capacity limitations without paying adequate attention to tax morale. Tax morale can be denoted through the peer effect of the compliance behaviour of other taxpayers, the fulfilment of the psychological social contract, transparency and accountability in the use of tax revenues as well as stakeholder communication, built on mutual trust and respect. In light of these tax morale dimensions, it is evident that tax compliance can never be divorced from the intrinsic motivation to pay taxes. The inextricable link, between tax evasion, tax compliance and tax morale, motivates this study. While previous studies on tax morale have applied single method research approaches, this study adopted a sequential exploratory mixed method research design, combining both qualitative and quantitative (through the use of document reviews, semi-structured interviews and questionnaires) in order to bring a balanced view. The study found out that tax morale was a strong driver of tax evasion and non-tax compliance in the informal sector.
The Role of Ease of Doing Business in Attracting Foreign Direct Investment in the SADC Region
(RSIS, 2024-06-26) Nyathi, L.D.; Mlobane, M.
This study seeks to analyze the role of ease of doing business in attracting foreign direct investment in the SADC region. The main goal of the study is to present new findings to corroborate whether ease of doing business factors are a significant and positive stimulus for Foreign Direct Investment (FDI). The study also proves to the role of ease of doing business to boost foreign direct investment in the SADC Region to enhance economic growth amid indications that foreign direct investment (FDI) streams in the SADC Region are diminishing rather than other economic communities all through the world, regardless of SADC’s endeavours to encourage an empowering environment for FDI. The research also verifies some hindrances such as negative gamble discernments, a troublesome business environment, and pervasive corruption as key elements given for SADC’s inability to attract and keep up with FDI. The study used panel data and therefore applied a Pooled Ordinary Least Squares (OLS) regression or a fixed effects model. The results revealed that gross fixed capital formation, political stability, corruption and gross domestic product were statistically significant towards FDI inflows into the SADC region. The study recommended that the SADC region should develop responsible foreign capital regulation which offers incentives for localized investment and lower unemployment rate by producing jobs and real income that can be used to either fuel economic growth or be saved in financial institutions.
Transfer Pricing Audit Challenges and Dispute Resolution Effectiveness in Developing Countries with Specific Focus on Zimbabwe
(Accounting, Economics, and Law: A Convivium, 2021-10-08) Sebele-Mpofu, F. Y.; Mashiri, E.; Korera, P
Base erosion and profit shifting activities of multinational enterprises (MNEs) have been a hot issue globally. Topical among the strategies employed by MNEs has been the issue of transfer pricing (TP). Developing countries are argued to be significantly affected by TP manipulation resulting in substantial tax revenues being lost. As a response to curb the unfavourable impacts of transfer mispricing, most developing countries have adopted the OECD TP guidelines and enacted TP legislation to regulate TP activities. The arm’s length principle is the core of TP legislation, yet it has brought challenges for tax administrators and their auditors in enforcing and assessing compliance respectively leading to disputes. In view of the ever-changing business world and continuous efforts by MNEs to minimise their tax obligations through income shifting, it was imperative to assess the factors affecting the effectiveness of TP audits and dispute resolutions as measures to enhance compliance and enforcement in developing countries, with specific reference to Zimbabwe. Findings include the lack of clarity in TP legislation, resource constraints and complexity of transactions, lack of expertise as well as the shortage of comparable data. Developing countries are encouraged to formulate clear TP regulations and invest in the capacitation of revenue authorities.

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