For many people around the world, getting hold of cash is as easy as finding your nearest ATM. But what if you live in Zimbabwe, a country suffering from a severe cash shortage?
Millions of Zimbabweans living abroad make a significant contribution to the Zimbabwean economy by sending money back home to support their families.
But sending USD to Zimbabwe can be challenging. Very few financial institutions can guarantee cash and senders are often concerned that their transactions will lose value if they are paid out in bond notes.
In this article, we will share tips for sending money safely to Zimbabwe for cash collection in US dollars.
Hyperinflation in Zimbabwe
Hyperinflation is the highest form of inflation. It occurs when there is a rapid increase in cash being produced, and this is not met by demand.
Zimbabwe reached hyperinflation in the late 1990s. In November 2008, inflation rates climbed to a record level of 231,150,888.87%. It was the second-highest rate ever recorded.
Prices doubled every 24 hours, and people struggled to afford essential goods. Eventually, the Zimbabwean currency lost all value. Banks and investment providers were forced to shut down.
Many people lost their savings unless they had them in cash and managed to exchange them into a foreign currency.
The cash crisis remains a challenge today.
What is the cash situation in Zimbabwe in 2019?
Since 2008, Zimbabwe has managed to stabilise the threat from hyperinflation. But there's still a long way to go.
Trading Economics data confirms that the annual inflation rate has been growing since October 2018. In March 2019, inflation reached 66.8% and prices are increasing.
The US dollar remains the most viable currency in Zimbabwe but the country’s banks are running out of cash, causing severe shortages.
How is WorldRemit helping remittance receivers affected by the Zimbabwe cash shortage?
The Zimbabwean diaspora community were fast to adopt WorldRemit's digital service and we are committed to helping them get USD safely into the hands of their loved ones.
Did you also know that one of WorldRemit's three founders, Richard Igoe, is a Zimbabwean? Richard played a vital role during the initial stages of building our money transfer platform and scaling the technology side of our business. So, to us, helping the Zimbabwean diaspora sending money back home is personal.
As a digital money transfer business, we help to facilitate quick, safe and low-cost money transfers to Zimbabwe. Senders can choose from a wide variety of pay-out options including instant cash pick up, bank transfer or airtime top up.
1. Unrivalled cash pickup network
We understand the growing demand for USD cash in Zimbabwe and want to make sure that Zimbabweans can cash out their remittances quickly and easily.
Today, we offer our instant cash pickup service at over 250 locations across the country - more than any other remittance provider.
We are committed to growing our cash collection network by strengthening our partnerships with key banks and cash collection providers.
To make it easier for people living in urban and rural areas to receive vital funds from loved ones abroad, WorldRemit has more than doubled its network of cash pickup partners in Zimbabwe in the past six months.
2. Guaranteed cash in Zimbabwe
Receive US dollars - with no exceptions.
Guaranteed cash is available through partners including Steward Bank, CBZ, Kaah Express, Quest Financial Services, and ZB Bank.
3. Increasing number of sender countries
We are also making it easier to send money abroad within Africa. We recently launched our money transfer service from South Africa, which is home to over 2 million Zimbabweans. By opening up this service, we have introduced some of the cheapest fees available on the market to send money to Zimbabwe - often under half of the average cost.
Follow us on Twitter for the latest news on new WorldRemit partnerships and sender countries.
4. Reliable support
WorldRemit offers complete transparency. To ensure that senders know where their money is at each step and that there are no wasted journeys for recipients, we send notifications to both the sender and recipient when the money is sent and ready for collection. We also notify our customers when their recipient has collected their cash for complete peace of mind.
If you have any questions about your cash pickup transfers, head over to our FAQs page.
Alternatively, if you would like to talk to someone from our team, we are only a phone call away and ready to help 24/7. You can find our contact details here.