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Zimbabwean banks have shut down 17% of their branches as an escalation in the number of coronavirus infections spurs lenders to shut their doors for the time being and accelerate a digitisation drive.
Of the 300 branches in the nation, 10% were completely shut last year as a result of the digitisation push. An additional 23 branches are currently under lock and key in response to a compulsory 30-day lockdown that began on January 5, the Zimbabwe Bankers’ Allied Employees Union stated.
“There is a high possibility that some may never be re-opened in the foreseeable future,” Shepherd Ngandu, the assistant secretary-general of the union, said by text message.
While banking is an essential service and is exempt from a compulsory shutdown, loan providers have decided to downscale to reduce infection risks. Companies now run shift within their employees every two weeks.
The country’s economy has been in decline for the past two decades amid shortages of everything from foreign exchange to pay for imports to food. Public medical facilities are under pressure as a result of a scarcity of beds and equipment, according to the Zimbabwe Organization of Medical Professionals for Civils Rights.
Owing to the thrust to provide more digital services, the labour union estimates that about 100 workers were made redundant last year. In the previous year, virtually 300 out of the 4 000 staff members in the sector were retrenched, which is 5 times greater than in 2018.
“For now, there are no direct job losses related to Covid-19, but we are beginning to see banks perfecting their digitalisation platforms during these times, leading to possible job losses this year and beyond,” said Ngandu.
Ralph Watungwa, the president of the Bankers’ Association of Zimbabwe, didn’t respond to a text message seeking comment.
