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Zimbabwe cracks down on currency dealers as dollar collapses

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BY RAY NDLOVU

Zimbabwean authorities are arresting informal currency traders who they blame for fuelling the latest collapse of the local unit on the black market.

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The arrests come four days after Vice President Constantino Chiwenga warned the traders that their activities were undermining government efforts to revive the economy.

Seventy-seven offenders have been arrested since September 28 and barred from accessing any financial services for two years with immediate effect.

The arrests are the latest attempt by the government to try and keep control of its currency, the Zimbabwe dollar, through two decades of economic turmoil.

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The local unit was scrapped after a bout of hyperinflation in 2009 and trade in the greenback and other currencies was permitted.

It was reintroduced in 2019 at parity with the American currency but quickly plummeted.

Attempts to keep the official rate stable have often seen the gap with the black-market rate widen.

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“The runaway parallel market rate is a concern and it causes dislocations on how the final product is priced,” Kurai Matsheza, president of the Confederation of Zimbabwe Industries, the country’s biggest business group, said by phone.

The Zimbabwe dollar changes hands on the streets of Harare, the capital, for Z$170 per U.S. dollar, while the official rate is Z$88.55.

Its recent drop in value has fuelled inflation, with businesses raising prices to hedge against the currency volatility.

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The official inflation rate rose for the first time in eight months in September, reaching 52%.

The Financial Intelligence Unit accused the traders of abusing mobile telecommunications services and social media platforms to promote and facilitate illegal foreign-exchange transactions and money laundering activities, according to John Mangudya, the governor of the central bank.

“The FIU has also requested the Postal and Telecommunications Regulatory Authority of Zimbabwe to bar the said individuals from operating mobile-phone lines,” he said in an emailed statement.

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Lawmakers discussed the widening gap between the official and parallel market exchange rate at a pre-budget seminar on Wednesday.

The central bank had to urgently act against companies that accessed foreign currency at the official rate at weekly auctions, but priced their goods and services based on parallel market rates, Gift Mugano, the executive director at Africa Economic Development Strategies, which does policy research, told the seminar. – Bloomberg

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National

Cyclone Chido moves away from Zimbabwe

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BY NOKUTHABA DLAMINI 

According to the latest updates from the SADC Humanitarian and Emergency Operations Centre (SHOC), Tropical Cyclone Chido has made landfall in Mozambique, approximately 35-40km south of Pemba, in Cabo Delgado Province.

The intense tropical cyclone brought heavy rainfall and strong gusty winds of up to 220km/h, causing widespread destruction in Mozambique. The system is expected to continue tracking west-southwest towards Malawi, steadily dissipating.

Zimbabwe, which was initially predicted to be in the cyclone’s path, has been spared the worst of the storm.

However, neighboring countries, including Malawi, are expected to experience heavy rainfall and strong winds over the next 72 hours.

The SHOC has issued a multi-hazard impact-based classification, warning of expected impacts, including strong gusts, heavy rainfall, and rough seas, in Mozambique, Malawi, and other parts of the region.

Member states have been urged to closely monitor official weather updates, intensify public awareness campaigns, and preposition relief supplies to enable a swift response to the cyclone’s impact.

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Senate passes death penalty abolition bill

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BY STAFF REPORTER 

The Zimbabwe Senate has passed the Death Penalty Abolition Bill, paving the way for the country to join the growing list of nations that have abolished capital punishment.

The bill, which has already been approved by the National Assembly, will now be sent to the President for assent and subsequent publication in the Gazette as an Act.

The country has 62 convicted prisoners facing the death penalty.

Veritas has congratulated the Senators, Members of the National Assembly, the President, and the Minister of Justice, Legal and Parliamentary Affairs for their role in facilitating the bill’s passage through Parliament.

Justice, Legal and Parliamentary Affairs Minister Ziyambi Ziyambi, who is also the Leader of Government Business in Parliament, defended the bill in the Senate, citing studies that show the death penalty has failed to deter crime.

He emphasized that the actual number of murders remained the same despite the death penalty’s existence, questioning its effectiveness as a deterrent.

Ziyambi also highlighted the bill’s potential to address the root causes of crime, which he believes the death penalty does not tackle. He pointed out the bias of the death penalty against poverty-stricken people, stating that history shows the majority of those executed are from disadvantaged backgrounds.

Zimbabwe has been on a de facto moratorium on executions for about 17 years, with the last execution conducted in 2005.

 

 

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Cyclone Chido bears down on Zimbabwe, government issues warning

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BY NOKUTHABA DLAMINI 

A powerful tropical cyclone named Chido is moving menacingly towards Zimbabwe, prompting the government to issue a warning and advise residents to take necessary precautions.

According to the Meteorological Services Department (MSD), Cyclone Chido has intensified into an intense tropical cyclone and is likely to affect Zimbabwe on December 17.

The storm is expected to bring heavy rains, thunderstorms, and strong winds to several provinces, including Manicaland, Masvingo, Mashonaland East and West, Harare Metropolitan, and parts of Midlands and Mashonaland West.

The MSD has warned of heavy rainfall exceeding 70mm in 24 hours in some areas, which could lead to floods, rockfalls, and mudflows.

Residents have been advised to plan evacuation mechanisms, avoid open spaces, secure their homes from damaging winds, and stay informed through authentic updates from the MSD and the Department of Civil Protection (DCP).

The government has assured citizens that it is taking necessary precautions to mitigate the impact of the cyclone. The DCP is on high alert, and emergency services are ready to respond to any situations that may arise.

As Cyclone Chido bears down on Zimbabwe, residents are advised to remain calm but vigilant. The government’s warning and advisory come as a precautionary measure to ensure public safety and minimize damage.

Stay tuned for further updates on Cyclone Chido and its impact on Zimbabwe.

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