Zimbabweans living in South Africa, both banked and unbanked, can now access free mobile transacting and basic insurance services through the launch of the AMA.ZING Diaspora solution.
Developed by the Zing Group, the solution allows clients living in South Africa to buy products and pay bills in Zimbabwe using AMA.ZING digital coins paid for in South African Rands.
“We view this product as a game-changer that will not only help realise financial inclusion for emerging markets, but also disrupt the current status quo in the financial services and money remittance sector,” Herbert Banhire, AMA.ZING Head of Zimbabwean Diaspora South Africa said.
He divulged that in the formal sector alone, $785 million was remitted from South Africa to Zimbabwe between January and November 2017.
“The average monetary value of these transfers was around R1 200. And while there are many money transfer businesses available, the cost of using these services in South Africa is very expensive, with official average fees reported at 16.71 percent,” Banhire said.
“The reality on the ground, however, is closer to between 20 percent and 40 percent of the total transfer of money being remitted across the border.”
He said looking at the sheer volume of money Zimbabweans spend on sending money across the border and the extent to which they are being exploited, pushed them to find a solution.
That solution is the AMA.ZING mobile app which can be downloaded for free.
Users then purchase US$-linked AMA.ZING coins, either by cash or by bank account, and redeem these coins against purchases or bills, which need to be paid in Zimbabwe.
All users qualify to receive free life cover rewards as well as cash-back rewards.
The app is set to be the first for people living in South Africa to buy insurance in Zimbabwe from across the border – a unique value proposition, made all the stronger by Swiss Re’s support.
Zing Coins can be purchased in app using a bank card, Snapscan app or Zapper app, or in cash from one of more than 100,000 till points around South Africa, found across a wide range of stores.
The solution is also very convenient as users only need to give their name and mobile number in order to register on the app and do not need a bank account.
“This is critical for the 3.5 million Zimbabweans living in South Africa – of which just 25 percent are banked formally,” said Banhire.