The Director General of Clinical and Public Health Services, Dr. Muvunyi Zuberi, said a few days ago that the National Bank of Rwanda (BNR) has given instructions on the mode of payment in health services.
“The instructions asking not to receive cash were given by the BNR. All health services must respect them,” says Dr Muvunyi Zuberi.
The motorcycle taxi drivers had been forced to suspend their work as part of the fight against the coronavirus. They will resume their business on 1 June. They have been ordered not to touch the money any more.
In commercial banks, customers are encouraged to embrace technology in financial transactions. The opening of new accounts goes hand in hand with the introduction of the customer into the digital economy. Publicity of the use of electronic money transfer is in full swing on social media.
At a time when Rwanda, like the rest of the world, is facing the covid-19 pandemic, it makes perfect sense to give such instructions because money is also a vector for the transmission of the coronavirus.
What seems surprising is the institution that gives the instruction. Dr. Muvunyi was honest. Yes, the BNR has given instructions for a gradual withdrawal of cash from circulation.
BNR catalyzes the strategy of the payment system
Rwanda has been moving towards a cashless payment system since 2018. It wants to ban the circulation of money in the Rwandan economy by 2024. All financial transactions should be carried out digitally. The National Bank of Rwanda (BNR) has been mandated to catalyze the strategy for the new payment system.
The BNR has played a leading role in facilitating payment services between banks. Almost all payment systems in government departments are currently being digitized.
The current phase consists of transforming the payment system in the different businesses. The payment must be cashless. Both the applicant and the service provider have to get into the swing of things. This phase may take longer than in previous phases. There are more players and the services are very varied and immense. Trade, transport, commercial bank services, …
In every misfortune, there is always an opportunity. The covid-19, a universal evil of the year 2020, is also an opportunity to be seized with both hands to accelerate the implementation of the payment system strategy in Rwanda. And the BNR has understood this.
New employment opportunities
When we talk about the digital economy, the inevitable restructuring that goes with this new way of working is overlooked.
The capacity of the regulator is essential to ensure that the supervisory function is properly carried out in accordance with best practice. It is also essential that stakeholders understand and plan for existing and new products and/or services and technologies.
To do so, human resources will need to be equipped with the right skills for the new situation. And unemployment cannot be avoided according to several observers.
According to economist Teddy Kaberuka, studies have generally shown that the use of technology and digital technology does not increase unemployment but creates new opportunities.
“What exists is the changing nature of work,” says Kaberuka, “Generally the expansion of the use of technology is removing manual work, work that is done with physical strength at the expense of types of jobs that require more or less advanced qualifications,” Kaberuka points out. For example, there are new jobs being created such as programmers, electronic security services, use of electronic systems, so the nature of the work is changing,” Kaberuka reveals.
“Obviously for the staff who were on the front line, especially the person who worked at the counter, they may lose their jobs,” he reveals. “But on the other hand, the Bank, for example, will always need another more qualified employee, better equipped to manage the ATM system,” he points out the new job opportunities.
This way, highly qualified, unemployed young people, who were trained with state funding or their own funds, will be able to find an opportunity to serve the country.
In addition, it should be noted that among the actions to be carried out for the success of this strategy is the organization of training to strengthen the capacity of government and bank employees. This should also be seen as an opportunity for the retraining of human resources.
It should be kept in mind, to cite a recent example, that the digital payment of state services has encouraged the launch of a new business exercised by intermediaries, with the IREMBO service.
The most important thing is to have a positive spirit and to know how to seize the opportunities available to you.
Gérard Rugambwa
