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MultiChoice to count cost of Zim payment restrictions

By , Journalist
Zimbabwe , 28 Feb 2017

MultiChoice to count cost of Zim payment restrictions

MultiChoice is yet to evaluate losses arising from foreign currency payment restrictions imposed by Zimbabwe which has now affected subscriptions for its pay TV platform, DStv, the company said on Tuesday.

The company said it would implement alternative payment methods to ensure subscribers do not encounter issues when paying subscriptions.

Liz Dziva, spokeswoman for Multichoice Zimbabwe said, "Multichoice continuously looks at alternative payment options to make available to our valued customers. Payments to MultiChoice Africa are no different to any other companies' foreign payments. At this stage, the impact to the business has not been evaluated yet."

Zimbabweans spent US$45 million on DStv payments in the second half of 2016 as the country continues to grapple with a worsening cash crunch.

The government is now promoting usage of plastic money and mobile money to offset the crippling shortages of bank notes.

Some Zimbabwean banks, including the Central African Building Society (CABS) which is controlled by Old Mutual, as well as mobile money companies, are limiting payment options for DStv.

Telecel Zimbabwe says it will stop processing DStv payments on its Telecash mobile money platform with effect from today, while CABS will no longer accept card payments from non-account holders.

Econet Wireless has already switched off its EcoCash US Dollar payment platform for DStv, although it has switched on a Rand account.

The Reserve Bank of Zimbabwe recently criticised excessive spending on DStv payments in Zimbabwe, highlighting that the funds could be used to import raw materials.

"Spending more foreign exchange on DStv subscriptions than on raw materials to produce cooking oil, for example, is not only counterproductive but also illogical," said Zimbabwe's central bank chief, John Mangudya earlier this month.

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