Tinotenda Hove – HARARE – Zimbabwean banks are under fire for charging excessive fees on foreign currency withdrawals, with customers paying between US$23 and US$50 to access just US$1,000 from their accounts—depending on the financial institution.

This trend has sparked outrage, especially when compared to global banking standards. In countries like Poland, where some Zimbabweans reside, banks typically allow customers to withdraw or transfer the full amount of their deposits with minimal to no additional charges. A customer depositing US$1,000 in Poland can withdraw the same amount without losing a cent to bank fees.

The issue of punitive charges was highlighted by Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mushayavanhu in his 2025 Monetary Policy Statement. He expressed concern over local banks’ overreliance on non-core income sources such as fees, rather than traditional lending activities.

“Fee income accounted for 22% of banks’ total revenue, while lending—a bank’s primary function—only contributed 13.46%,” said Dr Mushayavanhu. “This model is not sustainable and needs urgent reform.”

Analysts say the situation reflects deep structural inefficiencies in Zimbabwe’s banking sector, where customers often bear the cost of weak loan markets, high inflation, and regulatory instability.

Dr Mushayavanhu’s comments come as the RBZ pushes for reforms aimed at making the banking sector more development-oriented and accessible to the public. Whether the central bank’s call will force institutions to revisit their fee structures remains to be seen.