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Prosper Ndlovu Business Editor
THE Reserve Bank of Zimbabwe (RBZ) has awarded licences to 27 money transfer operators as the government moves to harness Diaspora resources for economic recovery.

The 27 operators have been given the green light to operate starting this month in line with the exchange control guidelines for Authorised Dealers with Limited Authority (ADLA).

Estimates indicate Diaspora remittances into the country stand at around $1.7 billion – gravitating towards $2 billion, which translates to above 50 percent of exports per year.

The move buttresses the 2015 monetary policy review statement presented by Central Bank Governor John Mangudya in February, in which exchange control policy measures on the liberalisation of international remittances market in Zimbabwe were enunciated.

“Pursuant to the Governor’s policy enunciation, Exchange Control would like to inform the public on the licensing of the following 27 companies as Authorised Dealers with Limited Authority (ADLA) with effect from 1st June, 2015,” said RBZ in a notice.

The apex bank has since categorised the licensed operators into three tiers – one, two and three.

The first tier comprises locally incorporated money transfer operators (MTOs) partnering with approved international money transfer organisations or use own systems and permitted to carry out both inward and outward international remittances.

This tier has 11 licensed companies who also buy and sell foreign exchange on a spot basis.

These include: the People’s Own Savings Bank (POSB), Stanbic Bank Zimbabwe Ltd, Econet Wireless, Express Financial Services, Ecobank Zimbabwe, CABS, Easy Money Transfer Ltd, Send Money Home Ltd, Steward Bank, Coporeti Support Service Pvt Ltd and Zimbabwe Post Pvt Ltd.

The second tier is made up of 13 locally incorporated money transfer operators operating as money transfer agencies (MTAs) by either partnering with approved international money transfer operators or use own systems to carry inward international remittances only.

These are: True Value Bureau de Change Pvt Ltd t/a Pacific, Africa Coin Mobile Money Pvt Ltd, Bonga Travel & Financial Services, MetBank Ltd, MBCA Bank, Solten Financial Services, CBZ Bank, Simukai Financial Services, Campion Forex Services t/a Hand2Hand, NMB Bank, OK Zimbabwe Ltd t/a OK Money Wave and Kaah Express Financial Services Pvt Ltd.

The category can as well buy and sell foreign exchange on a spot basis.

Meanwhile, the third category comprises three Bureau de Change, locally incorporated financial services providers, which only buy and sell foreign currency on a spot basis.

These are Barnfords Global & Financial Services, Artmount Trading Pvt Ltd t/a Zimexpress and SuperDeal Enterprises Pvt Ltd t/a Kwikforex.

“The Authorised Dealers with Limited Authority (ADLA) were licensed in terms of Exchange Control Guidelines for Authorised Dealers with Limited Authority (ECOGADLA1/2015),” said RBZ.

It, however, warned money transfer and Bureau de Change companies not listed in third tier (paragraph three) were “not officially recognised by Exchange Control and are deemed to be operating illegally”.

The RBZ said the Exchange Control remains available to accommodate more aspiring applications for licence to operate as Authorised Dealers with Limited Authority.

According to the Central Bank Zimbabwe received $840 million remittances in 2014 and $790 million in 2013 coming through local formal banking channels.

“This sector is too important to ignore,” said Mangudya while presenting the monetary review.

“To this end, the government and the Reserve Bank are putting in place measures to promote investment from the Diasporans, over and above remittances.”

He said spearheading investment needs of the Diasporans through integration with economic activities in the country was paramount.

The Diasporans are expected to syndicate, form consortiums and pool resources for investment in different key sectors of the economy such as mining, manufacturing, energy, agriculture, information communication technology to mention a few.