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Brian Mudumi Correspondent
When everything in the world has gone digital and electronically-connected, the adoption of E-solutions is no longer optional but mandatory for African countries. This is so much pertinent in Zimbabwe in the face of liquidity challenges where austerity measures are being introduced by the Reserve Bank of Zimbabwe to address cash shortages across the economy. Plastic money is inevitable in such a case to reduce hard cash in favour of electronic money.

Since Zimbabwe ditched its currency in 2009 following a hyper-inflationary epoch and started using the US dollar, the South African Rand, the Botswana Pula, British Pound and other currencies, the Reserve Bank of Zimbabwe has lost its prerogative to control monetary policy but there is still a fiscal mandate. With such new found power, it was able to control the circulation of money to a minimal extent, however unable to source it.

Liquidity challenges rocked the country right from the very day the central bank lost its fiscal mandate, making necessary measures to control the usage of the dominant US dollar. Zimbabwe first witnessed such austerity mechanisms by the Reserve Bank in the twilight of 2014 when the bond coins were introduced to address the cash crisis since they were going to be usable only in the local economy while invalid in international trade.

Since the country’s central bank was on a mission of damage control, the root problems were left souring. One of them is externalization of large amounts of cash by corporations and business magnates as recently revealed by the International Consortium of Investigative Journalists in the Panama Papers. The scarcity of hard cash in a multiple currency system necessitated the adoption of plastic money and electronic alternatives.

It might require long term solutions to deal with externalization of cash and money hoarding, however, desperate situations require desperate measures. Rather than waiting for the review of the legislative framework towards a spirit of national belonging to those involved in cash scandals, the immediate tempting measure is to move the economy in the direction of E-cash.

Social entrepreneurship organisations like EcoCash and mobile banking by various local banks have taken a commendable stance to replace paper money with E-solutions. Nonetheless, there is need to build confidence among consumers in soft solutions. Attitudes are not yet positive towards the move despite clients being able to buy airtime via mobile network. It is only a proliferation of this system that will assure positive attitudes in clients.

Since Zimbabwe has adopted the Look East policy anchored on China, a technologically affluent country, this should help Zimbabwe to produce local electronic solutions to stamp out cash shortages. A South African company, For us that has operated in the US in the transition phase from hard currency to E-money, has also helped in constructing the electronic visa system for China. Engaging such a company can be a great deal for Zimbabwe where cash shortages have become a major headache for the authorities. At the turn of the millennium, President Mugabe launched a computerisation programme that mainly focused on digitalizing schools and government departments. Under the thrust of enhancing ICT solutions, a Chinese conglomerate, Haer International, invited the writer to its Qingdao offices in China to exhibit some of its major achievements. This is the company that has developed the E-education plan for Venezuela, Pakistan and Kenya.

There are many other ICT-based companies here in China that have established a working relationship with local universities for functional collaborations. With a similar perspective, it is possible for us, as Zimbabwe to have these companies interacting with our higher learning institutions like Harare Institute of Technology for skills and technology transfer between Zimbabwe and China.

There are many angles within the scope of ICT in which Zimbabwe can help itself or even resuscitate the economy.

Brian Mudumi is the founding President of Zimbabwe China Youth Forum — with chapters in Zimbabwe and China focusing on youth engagements in business, culture and academic exchanges. He is currently on tour of the Asian giant.