Categories: AFRICABusiness

Zimbabwe Banks Shut 17% of Branches

Zimbabwean banks have closed about 17% of their branches as an escalation in the number of coronavirus infections spurs lenders to shut their doors for the time being and accelerate a digitisation drive.

Of the 300 branches in the country, 10% were permanently closed last year due to the digitisation push. An additional 23 branches are now temporarily under lock and key in response to a strict 30-day lockdown that started on January 5, the Zimbabwe Bankers’ Allied Workers Union said.

“There is a high possibility that some may never be re-opened in the foreseeable future,” Shepherd Ngandu, the assistant secretary-general of the union, said by text message.

While banking is deemed an essential service and is exempt from a total shutdown, lenders have opted to downscale to minimise infection risks. The companies rotate half their branch staff every two weeks.

The nation’s economy has been in decline for the past two decades amid shortages of everything from foreign exchange to pay for imports to food. Public hospitals are under strain due to a shortage of beds and equipment, according to the Zimbabwe Association of Doctors for Human Rights.

Owing to the thrust to offer more digital services, the labour union estimates that about 100 workers were made redundant last year. In the prior year, nearly 300 out of the 4 000 employees in the industry were dismissed, five times more than in 2018.

“For now, there are no direct job losses related to Covid-19, but we are beginning to see banks perfecting their digitalisation platforms during these times, leading to possible job losses this year and beyond,” said Ngandu.

Ralph Watungwa, the president of the Bankers’ Association of Zimbabwe, didn’t respond to a text message seeking comment.

Bloomberg

Follow us on:

AriseNews

Recent Posts

Matt Gaetz To Exit Congress Following Withdrawal As DOJ Nominee Amid Controversy

Matt Gaetz has said he will not return to Congress after withdrawing as Trump’s DOJ…

2 hours ago

Tinubu Seeks Senate Approval For Oluyede As Chief Of Army Staff

President Tinubu has sought Senate confirmation of Olufemi Oluyede as Chief of Army Staff, citing…

2 hours ago

Netanyahu Risks Arrest in UK as ICC Issues Warrant Against Him For War Crimes

Israeli PM Netanyahu faces potential arrest in the UK as Downing Street pledges to fulfill…

5 hours ago

Second Australian Teen Dies from Suspected Methanol Poisoning in Laos

A second Australian teenager has died of suspected methanol poisoning in Laos, bringing to six…

5 hours ago

Simon Ekpa Arrested, Denies Being IPOB Leader + Atiku Says Tinubu’s Loans Are Bone-Crushing – Trending With Ojy Okpe

https://www.youtube.com/watch?v=mFlFl1mPGC8 The arrest of self-proclaimed Prime minister of the Biafra Republic, Simon Ekpa who was…

6 hours ago

Gatwick Airport South Terminal Evacuated, Bomb Disposal Team Deployed Suspicious Item Found In Luggage

Gatwick Airport's South Terminal was evacuated after a suspected prohibited item was found, prompting bomb…

6 hours ago