Zimbabwe banks set to shed more jobs in 2020 due to digitalisation
07 January 2020 - 16:20
byGodfrey Marawanyika
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
A woman shows Zimbabwe's new banknotes in Harare, Zimbabwe, November 12 2019. Picture: REUTERS/PHILIMON BULAWAYO
Harare — After shedding 8% of their workforce last year, Zimbabwean banks may cut more jobs in 2020 as the economy shrivels and the sector increasingly shifts away from cash and towards digital services.
“The banking industry, just like the rest of the economy, will suffer negative growth this year, which could result in even more job cuts,” said Sijabuliso Biyam, CEO of the Bankers Association of Zimbabwe. “The sector is now driven by technology. If the economy was doing well, those people who have been made redundant could have been redeployed elsewhere, but sadly that is not the case.”
At least 300 of the 4,000 employees in the industry lost their jobs last year, according to the Zimbabwe Banks and Allied Workers Union, more than five times higher than those dismissed in 2018.
An economy that probably shrank 6.5% in 2019, an inflation rate of more than 440%, and a cash crisis that has seen foreign currency evaporate from the country is forcing banks to provide digital services.
“The year 2019, was not a good year for workers in the banking sector,” said Shepherd Ngandu, assistant secretary-general at the union. “The workers lost their jobs due to digitalisation and changing work methods.”
Standard Chartered’s local unit, First Capital Bank, CBZ Holdings and BancABC Zimbabwe were among lenders that cut jobs, he said, adding that an unidentified money transfer agency fired 45 workers, while voluntary redundancies also took place at Old Mutual.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Zimbabwe banks set to shed more jobs in 2020 due to digitalisation
Harare — After shedding 8% of their workforce last year, Zimbabwean banks may cut more jobs in 2020 as the economy shrivels and the sector increasingly shifts away from cash and towards digital services.
“The banking industry, just like the rest of the economy, will suffer negative growth this year, which could result in even more job cuts,” said Sijabuliso Biyam, CEO of the Bankers Association of Zimbabwe. “The sector is now driven by technology. If the economy was doing well, those people who have been made redundant could have been redeployed elsewhere, but sadly that is not the case.”
At least 300 of the 4,000 employees in the industry lost their jobs last year, according to the Zimbabwe Banks and Allied Workers Union, more than five times higher than those dismissed in 2018.
An economy that probably shrank 6.5% in 2019, an inflation rate of more than 440%, and a cash crisis that has seen foreign currency evaporate from the country is forcing banks to provide digital services.
“The year 2019, was not a good year for workers in the banking sector,” said Shepherd Ngandu, assistant secretary-general at the union. “The workers lost their jobs due to digitalisation and changing work methods.”
Standard Chartered’s local unit, First Capital Bank, CBZ Holdings and BancABC Zimbabwe were among lenders that cut jobs, he said, adding that an unidentified money transfer agency fired 45 workers, while voluntary redundancies also took place at Old Mutual.
Bloomberg
WANDILE SIHLOBO: Is it too little too late for Zimbabwe’s maize imports?
Zimbabweans told to defend and protect the local currency
Bulawayo residents hit by water cuts as Zim drought dries dams
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
Zimbabwe set for another dismal year of drought, says UN
Zimbabwe edges closer to famine
I know you are suffering, Emmerson Mnangagwa tells Zimbabweans
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.