MIDWEEK REPORTER
HARARE-While it is given that a customer is king and should be treated equally, unfortunately this is not the case with Ecosure as those who pay their premiums in USD are more equal than those who pay in ZW$.
In local currency for a basic policy/package for Ecosure one was paying ZW$1 990 (sum assured upon death is ZW$1m) as of February 2023 and for the same basic package if you pay in USD you part with just a dollar (sum assured US$1000).
In February this year the parallel market was trading at US$1 to ZW$950 while the official rate was US1 to ZW$730 implying that Ecosure was charging almost three times the official rate.
This reporter spoke to Blessing Muchemwa (0781705112) who said she works for Ecosure and confirmed the premiums, but said she is not sure how the company comes up with such charges.
What it effectively means is that Ecosure or Econet have devalued the local currency more than any other institution in Zimbabwe, by far surpassing the parallel market.
When asked to comment on the differences Econet Wireless and Ecocash Holdings group media and corporate communications executive, Fungai Mandiveyi asked for questions in writing in early February and promised to revert back, but had not communicated back by the time of publishing this story.
The Consumer Council of Zimbabwe executive director, Rosemary Mpofu called upon businesses to be ethical in their dealings with exchange rates so that they do not prejudice consumers who are reeling under economic hardships caused by the economic melt-down which are causing currency fluctuations.
“We call upon service providers, retailers to practice ethical pricing as the Zimbabwe dollar remains legal tender in transacting, contracts, so we expect consumers to get a fair deal in the market by not punishing those consumers who use local currency.
“We are in a multi-currency regime as stipulated by the monetary authorities who have since put in a law that says both the US dollar and the Zimbabwe dollar will be used concurrently during the subsistence of the National Development Strategy 1 (NDS1) economic blue print. Thus, consumers should not be short changed and over-priced as we have noted of late that some businesses are taking advantage by overpricing goods and services for consumers who are paying in local currency
We have noted that instead of using official market rates or the RBZ auction rate and interbank rates, they instead index their prices using parallel market rates that are inflationary. We urge consumers to resist such malpractices,” said Mpofu in response to The Midweek enquiry.
In 2020 an almost similar scenario led to the suspension of giant insurer, Old Mutual from trading on the Zimbabwe Stock Exchange as its exchange rate was now being imported from other bourses outside the country where it is listed. It was known as the Old Mutual Rate in the market and it was even higher than the parallel market rate.
The suspension was due to the authorities fearing that the external share prices were being used to gauge the correct value of the depreciating Zimbabwe dollar as opposed to the interbank rate.
The suspension was also extended to PPC and Seed Co and it affected the trading of their shares then.
An economist who commented on condition of anonymity as he does business with Econet said it was rather strange that the financial giant is being allowed to behave in such way as it further erodes confidence in the local currency.
“What Ecosure is simply saying is; dump the Zimbabwe dollar, pay in foreign currency and the value of your policy will be maintained, forgetting that the bulk of workers in Zimbabwe earn in local currency which means after getting their pay checks they have to run around looking for the USD to pay for goods and services,” he said.
The Midweek Watch has also gathered that some clinics and doctors are no longer treating patients who pay their monthly medical aid premiums in local currency preferring those paying in USD.
Josephine Bingepinge from Chinyausunzu in Mutare City whose husband works for parastatal was told to pay cash and claim directly from her medical aid society for blood tests at a local clinic in the city after she presented her medical aid card which showed that she pays her premiums in local currency.
“I wanted some blood tests which the service provider said would cost US$12, ZW$22 000 cash or swipe. When I contacted my medical aid society they promised to pay in full when the claim form is submitted at the prevailing exchange rate on the day of submission but the clinic declined.
“They even said even if I was paying as little as US$1 premiums for my medical aid per month they would conduct the tests without any problems, but as long as it is ZW$ they could not assist as they risked a shortfall,” said Bingepinge.
She ended up forking out cash to get the tests done rendering her medical aid useless.
This may be an isolated case but it mirrors the predicament of having or using local currency for transactions in the country for many.
