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Nqobile Bhebhe

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THE Bulawayo City Council (BCC), which is owed millions in revenue by various stakeholders, has partnered with mobile money operator, Ecocash Holdings, on a debt recovery deal.

Under the arrangement council will share its accounts database of debt balances and contact details with Ecocash who will, through its Short Message Service (SMS) platform notify the council’s debtors of their amounts due.

According to the latest council minutes, EcoCash Holdings’ account executive, Mr Pride Gonde, wrote to the council on March 30 proposing the partnership.

EcoCash

“As per our conversations with your offices as EcoCash merchants department, we would like to propose that we assist you on a drive to collect revenue from your respective clients including debtors,” he wrote.

“As EcoCash we would like to offer you a free SMS platform to your clients reminding them of their dues and these SMS will be targeted. As EcoCash, we will offer the platform and also issue you with daily statements for reconciliation for your billers.”

Mr Gonde said Ecocash Holdings has successfully implemented the initiative with Harare City Council, which has resulted in some of their customers paying using EcoCash, cash as well as swipe.

Mr Gonde said the intervention has produced good results.

“We have worked together for a long time and with that partnership we believe it will go a long way on payments, revenue collection as well as debt collections. We would propose that you send us your list of debtors or clients in order for us to come up with targeted SMSs,” he wrote.

“Lastly, EcoCash had now activated USD payments on our direct platform, as well as other POS machines. Therefore, we also encourage you to make use of the currency, and if you need our personnel to come and assist you or your clients will do so and also give you suitable branding.”

According to the report, the council has warmed up to the proposed partnership as it was at no cost to the local authority as the council only had to share its database of accounts with debt details to Ecocash.

“The arrangement would strengthen business synergies with corporates in the city. It would increase the use of digital payment methods and improve cash and debt collection. It was cost-effective as it came to council at no cost and it would increase the number of SMS notices sent to ratepayers,” reads part of the minutes.

Councillors  recommended that the council sign the partnership with EcoCash. However, the council said the risk associated with the proposal hinged around the issue of confidentiality related to council customers’ details and balances.

“Nevertheless, the benefits that would accrue to the council and the related upsurge in the use of digital platforms and the increase in cash collection far outweighed the risk,” it said.

The local authority then resolved “that authority be granted for council to share its accounts database of debt balances and contact details to Ecocash Holdings for notifying council’s debtors of their amounts due.”