By Lenox Lizwi Mhlanga

Zimbabwe, a country with a rich history and diverse culture, has been grappling with financial inclusion challenges for decades. The lack of access to financial services, particularly for the most vulnerable populations, has been a significant barrier to economic growth and development. As part of commemorating Global Money Week, the Zimbabwe Association of Business Communicators (ZABC) hosted a Financial Communicators Luncheon recently to highlight these issues.

The aim of the event was to bring together public relations practitioners and financial communicators to examine how they can make a positive contribution to the financial inclusion initiative. What came out was that the role of public relations professionals and financial communicators was instrumental in bridging the gap.

Financial inclusion is the process of ensuring that all members of society have access to a full set of financial services at affordable prices and in a convenient manner. It encompasses a range of financial services, including bank accounts, loans, savings accounts, payment services, remittances, and insurance. The importance of financial inclusion lies in its ability to improve people’s lives by providing them with the tools to manage their finances, invest in their future, and build financial resilience.

Barriers to financial inclusion can be attributed to individual and environmental factors. These barriers are complex and interrelated, and they can vary greatly depending on the specific context of a country or region. Some of the key barriers to financial inclusion include issues of trust and confidence in the financial institutions because of historical reasons. This has had the effect of deterring ordinary people from using the formal banking system.  

A significant portion of economic activities occurs in the informal sector, where transactions are conducted in cash and remain outside the formal financial system. Another barrier is that of income and affordability where Low-income levels can prevent individuals from accessing financial services due to the high costs associated with traditional banking services.

Age and education are another barrier. Older adults and those with lower levels of education may be less likely to have access to financial services as with the case of gender where women and other marginalised groups often face additional barriers to financial inclusion due to cultural norms, limited mobility, and restricted access to resources.

The absence of formal identification documents is another challenge that can prevent individuals from opening bank accounts and accessing financial services. Most of the citizens in Zimbabwe also have challenges related to distance and accessibility to financial service centres. Individuals living in remote areas or without easy access to financial institutions struggle to access financial services. Such remote areas have limited or poor infrastructure, including limited internet connectivity and lack of electricity This hampers the adoption of digital financial services.

Financial inclusion is crucial for several reasons. First, it eases transaction costs for households and businesses, aiding financial planning and investing in areas like housing, health, and education. Second, it increases resilience against negative economic shocks, particularly for poor and vulnerable populations. Third, it can support the growth of micro, small, and medium-sized enterprises (MSMEs) and create additional jobs.

Financial inclusion is also essential for sustainable economic growth and development. It is a key component of the United Nations Sustainable Development Goals (SDGs), with targets focused on promoting financial inclusion and reducing financial exclusion. Moreover, financial inclusion has been shown to be an enabler and accelerator of broad-based economic growth and resilience.

In summary, financial inclusion is important because it empowers individuals and communities to meet basic needs, such as nutritious food, clean water, housing, education, and healthcare. It also fosters economic growth, reduces inequality, and enhances financial resilience. By ensuring that everyone has access to affordable and convenient financial services, we can create a more inclusive and prosperous society.

To overcome these barriers and promote financial inclusion, a multi-faceted approach is required. Some strategies that have been proposed include the expansion of digital financial services such as Mobile banking and digital wallets can provide convenient, affordable, and accessible ways for individuals to conduct financial transactions.

Financial education and literacy programs that invest in financial education initiatives can empower individuals with the knowledge and skills required to make informed decisions about their money and access suitable financial products.

Simplified account opening processes will reduce documentation requirements and allow digital identity verification can increase access to formal financial services. Mobile money agents and banking correspondents can be employed bringing financial services closer to remote communities, reducing the need for individuals to travel long distances to access banks.

Public-private partnerships and collaborations between financial institutions, governments, NGOs, and technology companies can pool resources to develop tailored solutions for financial inclusion.

Implementing gender-specific strategies that address the unique challenges faced by women in accessing financial services can help to promote financial inclusion for all while targeted regulatory reforms should encourage the Government to enact regulatory reforms that encourage innovation, lower transaction costs, and create an enabling environment for digital financial services to thrive.

Public relations professionals play a crucial role in shaping public perception and understanding of financial inclusion. By crafting compelling narratives and messages, they help to raise awareness about the importance of financial inclusion and the benefits it brings to individuals and communities. This is particularly important in Zimbabwe, where trust in the financial services ecosystem and regulatory environment is a major barrier to financial inclusion.

Financial communicators, on the other hand, work directly with financial institutions and regulators to develop and implement strategies that promote financial inclusion. They help to identify and address the specific challenges that prevent people from accessing financial services, such as high costs, lack of financial knowledge, and distance from financial institutions.

One of the most significant aspects of the role of public relations professionals and financial communicators in Zimbabwe is their impact on monetary policy. Financial inclusion has been shown to have a positive effect on monetary policy effectiveness, as it allows for more effective implementation of interest rate policies and stabilization of price levels. This is crucial for a country like Zimbabwe, which has faced significant inflationary pressures in the past.

In conclusion, the role of public relations professionals and financial communicators in bridging the financial inclusion gap in Zimbabwe is multifaceted. They play a critical role in shaping public perception, developing and implementing strategies, and influencing monetary policy. As Zimbabwe continues to work towards a more financially inclusive future, the contributions of these professionals will be invaluable.

Lenox Mhlanga is a communication consultant with over 24 years’ experience and has worked for the World bank and IMF as well as blue chip companies, and organisations in different sectors. He can be contacted at [email protected] or mobile: +263 772 400 656