Zimbabwe’s Digital Finance Sector Sees Explosive Growth Driven by Government Reforms

Zimbabwe is experiencing a digital finance boom, with the Reserve Bank of Zimbabwe (RBZ) reporting that digital retail transactions climbed to $5.93 billion in the second quarter of 2025. This represents a 34% increase from the $4.4 billion recorded in the first quarter, highlighting the country’s rapid adoption of digital financial services.

The surge has not been limited to retail payments. Wholesale digital transactions also rose by 15% during the same period, reflecting a wider embrace of digital platforms across sectors. Analysts point to a combination of government-backed reforms, technological innovation, and structural economic challenges as the main drivers of this growth.

Government initiatives have played a central role. In the second quarter alone, authorities deployed 152,000 point-of-sale (POS) machines across the country. Alongside this, the rollout of real-time gross settlement (RTGS), electronic funds transfers (EFTs), and other payment technologies has expanded access to faster, more reliable financial services. The national payment switch, ZimSwitch, has also improved interoperability, allowing financial institutions to integrate seamlessly within the digital ecosystem.

The introduction of the gold-backed ZiG currency has further boosted transaction volumes, despite criticism from international bodies like the International Monetary Fund (IMF). At the same time, mobile money services continue to thrive. With Zimbabwe’s high mobile penetration and ongoing cash shortages, millions of citizens and businesses are turning to digital wallets and mobile platforms for their daily transactions.

Authorities, however, are pushing for greater formalization in the financial sector. The government has stepped up enforcement against unregulated forex dealers, warning businesses and service providers that penalties will apply for operating outside official channels. Already, banks report an increase in foreign exchange volumes passing through regulated systems.

This surge mirrors a wider trend across Africa. In Tanzania, for example, a government-backed instant payment system processed $11.7 billion in transactions in just the first half of 2025. Experts predict that Africa’s digital payments market could exceed $1.5 trillion by 2025, while cross-border digital transactions are projected to reach $1 trillion.

Despite the impressive growth, challenges remain. Industry experts caution that rising digital adoption is being accompanied by higher rates of financial fraud, underscoring the need for stronger cybersecurity measures. Even so, Zimbabwe’s momentum suggests that the shift toward cashless transactions is accelerating, setting the stage for deeper financial inclusion and a more modern payments landscape.