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Zimbabwe dollar’s second death predicted

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BY RAY NDLOVU

When Zimbabwean businessman Nigel Chanakira asked 100 chief executive officers at a seminar in Harare on January 27 if they were willing to use the local currency, only one raised his hand.

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That reluctance is a stark demonstration of the government’s failure to win confidence in the Zimbabwe dollar, the reintroduction of which Finance minister Mthuli Ncube has staked the stagnating economy’s recovery on.

For the second time in two decades, Zimbabweans are abandoning their local currency.

At restaurants, a simple request for “the rate” sees one’s bill halved if it’s met in hard currency, and supermarkets openly offer discounts for goods purchased in United States dollars.

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The government paid public workers their Christmas bonuses in dollars, and the revenue service collects a third of its income in greenbacks.

“We can’t deny the reality,” Chanakira, the founder and former CEO of now-closed bank Kingdom Financial Holdings Ltd., said in an interview.

“When you get the Zimbabwe dollar you spend it quickly. No one wants to save in that currency.”

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Between 2009 and 2019, Zimbabwe’s economy was dollarised after hyperinflation led the government to print trillion-Zimbabwe dollar notes before abandoning its currency, leaving the country’s name synonymous with economic malfunction.

While the subsequent dollarisation tamed price growth, it hurt businesses as neighbouring countries using their own depreciating currencies undercut Zimbabwean manufacturers.

“Zimbabwe had become uncompetitive by 2013 and was burdened by an expensive workforce,” John Legat, CEO of the country’s oldest brokerage, Imara Asset Management Ltd., said in a note to clients.

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In February 2019, the government dropped a peg that kept a precursor of the Zimbabwe dollar at parity with the US dollar.

In June, it was rechristened the Zimbabwe dollar and use of foreign currency was briefly outlawed.

Today the currency trades at 115 to the greenback, and more than twice that on the black market.

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While inflation slowed from a 12-year high of 837 percent in July 2020, it was at 61 percent in January, still rapidly eroding the value of the local unit.

Officials including Ncube, a former Oxford University lecturer, and Reserve Bank of Zimbabwe Governor John Mangudya, said government policy is to stick with use of the Zimbabwean dollar.

“The country is not re-dollarising,” Mangudya said in a interview on January 17. “We need to find a home for our currency.”

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Ncube and his ministry didn’t respond to requests for comment.

Alois Burutsa, the lone defender of the Zimbabwe dollar at Chanakira’s meeting, said in an interview that “without our own currency, our exports become uncompetitive.”

He’s general manager of Buy Zimbabwe, an organisation that promotes local goods.

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Capitulation

Yet central bank figures show that 44 percent of transactions in the country are conducted in greenbacks.

The American currency is used to pay for everything from fuel to food, passports, medicines and school fees.

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Econet Wireless Zimbabwe Ltd., the country’s largest mobile phone operator, offers additional airtime and data if purchases are made in US dollars.

With the Zimbabwe dollar untradeable outside the country, companies need foreign currency to pay for imported equipment, consumer goods, and to placate an increasingly dissatisfied workforce.

And it’s not only businesses that are seeking alternatives to the local currency.

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The government itself is increasingly finding it has to pay in US dollars if it wants to get things done.

Already it’s told public workers that they’ll be paid partly in hard currency this year.

According to Imara, the brokerage, 45 percent of infrastructure contracts are being met in dollars.

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“Dollarisation is the ultimate outcome of a failed economic policy,” said Gift Mugano, executive director at Africa Economic Development Strategies, a Harare-based consultancy.

The Zimbabwe dollar “will be in the graveyard” by June, he predicted. Imara says it’ll be largely obsolete by the end of the year.

Chanakira was more optimistic: he said the currency could survive for another two years. – Bloomberg

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National

Government launches nationwide dog vaccination drive amid surge in rabies cases

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BY WANDILE TSHUMA 

The Government has launched an urgent nationwide dog vaccination campaign following a surge in rabies cases across Zimbabwe.

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In a statement posted over the weekend, the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development said the country is experiencing a significant rise in rabies infections, largely linked to domestic dogs and wild jackals.

Permanent Secretary Prof. Obert Jiri confirmed that 650,000 doses of rabies vaccine have been secured from Botswana — exceeding the country’s usual annual requirement — to contain the escalating threat.

The Ministry said the campaign will be rolled out in the coming weeks across all provinces, targeting hotspots near national parks and conservancies, as well as urban areas that have recorded increasing cases.

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Prof. Jiri stressed the urgency of seeking immediate medical attention following dog bites, warning that rabies is fatal in humans once symptoms appear.

He appealed to dog owners to ensure their pets are vaccinated, saying collective action remains the primary defence against the deadly disease and is critical in preventing further fatalities.

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Matabeleland North flags aid discrimination as provinces record widespread violations

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BY NOKUTHABA DLAMINI 

Matabeleland North recorded cases of discrimination in government aid distribution and political interference in community leadership, as human rights violations were reported across all provinces in January, according to the Zimbabwe Peace Project (ZPP).

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In Matabeleland North, five violations were documented.

“On 9 January 2026, in Ward 29 (Emphafeni), farmers reported irregularities in agricultural input distribution, including selective allocation of groundnuts and maize seed to ruling party supporters, and sharing of 50kg fertiliser bags among three farmers, raising concerns over fairness and equal access to government assistance,” the report states.

In Binga South, a village secretary was removed from his position “for not aligning with ruling party positions, affecting his political rights and freedom of association.”

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In Matabeleland South, four violations were recorded, mainly involving political intimidation. In Gwanda, individuals allegedly invaded Vubachikwe Mine claiming political backing, while in Bulilima West, villagers were reportedly threatened with losing land under the land reform programme if they did not support the “2030” agenda.

Bulawayo recorded two violations, including a case where “a visually impaired woman was denied bus transport from Bulawayo to South Africa despite having valid travel documents and fare, raising concerns of discrimination based on disability.” Residents in Old Magwegwe also reported prolonged sewage blockages exposing families to health risks.

Midlands province recorded 13 violations, including environmental concerns in Redcliff and Kwekwe over potential water contamination linked to gold processing chemicals. In Zhombe, political interference prevented enforcement of a court sentence in an assault case. In Silobela, police disrupted a Gukurahundi memorial service organised by a human rights group.

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Masvingo recorded 19 violations, including the assault and arrest of a female vendor at SimRac Shopping Complex. The report says her goods were destroyed in what it describes as harassment of informal traders. Patients at Mashoko Hospital and Gawa Clinic also faced high user fees and limited medication.

Mashonaland West recorded 10 violations, including alleged irregularities in agricultural input distribution in Magunje and assault linked to ruling party supporters in Sanyati.

Mashonaland East documented six violations. In Murehwa North, “Provincial Chairperson and Minister Daniel Garwe threatened individuals in Ward 30, warning that those supporting the opposition CCC would be excluded from community programs and that anyone associating with CCC members could face violent reprisals.”

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Mashonaland Central recorded four violations, including exclusion of community members, including persons with disabilities, from presidential agricultural inputs in Mt Darwin South, and learners being denied access to Grade 7 results over unpaid fees.

Harare recorded 16 violations, including assaults linked to political intolerance, disruption of civic gatherings, politicisation of borehole water access in Glenview, and the detention of a political activist over a planned protest.

Manicaland recorded the highest number of violations at 31. ZPP said incidents involved “state security agents, ruling party members, war veterans, and local authorities,” including intimidation of a human rights defender in Chimanimani and disruption of a community meeting in Nyanga South.

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Overall, ZPP said the January data reflects “continued structural and institutional challenges in the protection, promotion, and fulfilment of human rights,” reinforcing the need for strengthened accountability and rights-based governance across the country.

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Police arrest six in major drug busts across the country

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BY BANDILE TSHUMA

The Zimbabwe Republic Police (ZRP) has arrested six suspects in separate incidents involving the unlawful possession and cultivation of dangerous drugs across the country.

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In a press statement written on Monday, police said the arrests were part of ongoing efforts to curb drug trafficking and substance abuse.

On Sunday , police in Plumtree intercepted a Toyota Quantum vehicle and arrested Msawenkosi Ndlovu (49) and Vengai Chawa (41). The two were found in possession of 5 124 bottles of Broncleer cough syrup (100ml) and 4 170 bottles of Astra Pain cough syrup (100ml). The illicit substances are valued at approximately US$80 000.

In a separate case on the same day, police in Wedza arrested Emanuel Busemani (28) at Plot 7 Investment Farm in Melfort, Goromonzi in connection with the unlawful cultivation of dagga.

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Meanwhile, in Bubi, Lacken Tshuma (55) and Owner Muleya (32) were arrested on Monday at Inunwa Ranch for unlawful cultivation of dagga.

In another incident on Friday, Tinashe Mero Shoko (22) and Eliot Badza (33) were arrested at a house in Garikai, Dulibadzimu, Beitbridge after police recovered 100 kilogrammes of dagga.

Police reiterated that the fight against drug and illicit substance peddling and trafficking will continue for the safety and security of Zimbabweans.

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The ZRP urged members of the public to provide information on drug lords, dealers and criminal syndicates. Reports can be made through the National Complaints Desk on (0242) 703 631, via WhatsApp on 0712 800 197, or at any nearest police station.

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