Cassava Smartech, the parent company of EcoCash, has made an urgent chamber application seeking a temporary interdict seeking to reverse government’s decision to bar cash-ins and cash-outs under mobile money platforms.
Government on Monday ordered the shutdown of the cash-in and cash-out facilities citing Section 10 of the National Payment Systems Act as it moves to stem illegal foreign currency trades which has seen the US$:ZWL$ rate hitting 25 two weeks ago.
EcoCash became operational in 2011 and has helped to drive financial inclusion by reaching to the remotest parts of the country where banks found it untenable to open branches.
According to court papers filed by the company’s lawyers Mtetwa and Nyambirai, cash-ins worth US$10 billion plus ZW$7.5 billion have been transacted under this platform. On the other hand cash-out transactions worth US$8.6 billion and ZW$4.1 billion have been transacted under this facility.
“This application is intended to temporarily stop the continued implementation of the Respondent’s directive pending the determination of the legality or otherwise of the directive on the return day on the grounds that the applicant meets all the requirements for the grant of temporary interdict,” the lawyers averred.