Digital Money Forging Ahead

Econet Wireless is now allowing group savings on its mobile money platform, EcoCash, a development the company says will reduce risks associated with cash handling. 

The EcoCash Savings Club will earn interest on "all pooled funds" each month. 

Saving groups can appoint a chairperson who will undertake the opening of the account while approving members will also be selected from the group. 

Savings groups are common in most African communities whereby members in a group put money together for a common interest such as buying properties or for funding functions such as funerals or weddings. Most of these groups appoint a member or take turns to keep the money inside their houses. 

"They (saving groups) typically consist of a group of members who each contribute regularly into a cash pool that members borrow from on a rotating basis. While the practice is widespread, savings clubs face security risks in handling cash and difficulties in tracking contributions and withdrawals from members," said an official at Econet Wireless. – ITWeb Africa, May 8, 2015 

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