GOVERNMENT has begun implementing a nationwide programme to integrate unregistered businesses into the formal economy by distributing point-of-sale (POS) machines, which are now a prerequisite to getting operating licences.
Authorities are, however, working on measures to simplify business processes in order to promote compliance.
In his address during the first Cabinet meeting this year, President Mnangagwa emphasised the need to ensure that businesses do not suffer from prohibitive regulations and punitive administrative licences and fees.
Under the programme, local authorities have been directed to ensure that only businesses with functional POS machines and registered bank accounts are granted or allowed to renew their operating licences.
The move is expected to increase use of the Zimbabwe Gold (ZiG) currency, enhance digital transactions and tax collections, and foster financial inclusion.
A recent survey by the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) confirmed that most business centres across the country have the necessary infrastructure to support POS machines, including power and internet connectivity.
In areas where connectivity or power supply is unreliable, businesses will be issued with offline-compatible POS machines, which do not require a constant network connection, ensuring that remote areas are not excluded.
In an interview with The Sunday Mail, Reserve Bank of Zimbabwe Governor Dr John Mushayavanhu said the initiative is vital for increasing tax collection and formalising businesses.
“The broader goal is to ensure that all businesses are connected to the formal banking system through the use of POS machines,” said Dr Mushayavanhu.
“As such, the number of machines to be released is dependent upon the need for full coverage of businesses operating in Zimbabwe.
“To this end, the Reserve Bank is collaborating with banking institutions through the Bankers Association of Zimbabwe and other service providers to ensure that POS gadgets are available to all businesses.
“The Reserve Bank assures the nation that all businesses will be provided with POS machines as needed. As such, systems are in place to meet the demand for POS machines from businesses.”
The authorities, he added, had set up a mechanism where small businesses can share the same POS machine.
“It is important to note that some small mobile POS machines can be shared among businesses. In this regard, small businesses will be provided with mobile POS machines, each linked to a unique bank account code, and this will be able to cover many businesses.
“As you are aware, all POS machines are operated through the banking system, so banks are a crucial partner in this initiative,” Dr Mushayavanhu said.
Banks have since started issuing POS machines to all business account holders, both new and existing, when they register or renew their businesses with local authorities and public enterprises.
“In line with the Reserve Bank’s Monetary Policy Statement of February 6, 2025, banks were directed to provide POS machines to all business account holders, whether new or existing,” he continued.
“Specifically, regarding informal traders, the Reserve Bank is collaborating with local authorities to ensure that all applicants for trading licences (individuals or corporates) have a bank account and a functional POS machine at the point of licensing and/or renewal.
“As such, the process has started and will be ongoing as banks continue to roll out the gadgetry to all new and existing businesses as they renew their operating licences with local authorities and public enterprises.”
Dr Mushayavanhu said adoption of POS machines by informal traders enables transactions to be processed through standard banking channels and simplifies revenue collection.
“Minimum basic infrastructure, including power and connectivity, is critical for the impactful rollout of POS machines across the country,” he said.
“We are pleased that local authorities and the Postal and Telecommunications Regulatory Authority of Zimbabwe have confirmed that most business centres have the minimum infrastructure to support POS machines.
“In addition, most small businesses are also running on solar units, which can easily support POS machines. Importantly, some POS machines do not require network connectivity and can work offline, and these can be prioritised to the most remote areas.
“Further, the Reserve Bank is working with mobile network operators and service providers to ensure that the POS services are accessible across the country.”
The exercise is expected to ensure that all Zimbabweans, particularly those in rural, marginalised and outlying areas, have access to financial services.
Dr Mushayavanhu said the Financial Intelligence Unit will strengthen its surveillance and monitoring to ensure compliance by businesses in the use of POS machines, in line with the expected volume of electronic sales in each area.
