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Cryptocurrency scammers target desperate Zimbabweans

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BY VIMBAI CHINEMBIRI

When her sister fell ill with cancer two years ago, Bertha decided to take a chance.

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She invested money earmarked for her child’s school tuition in bitcoin through a company operating from central Harare.

Her hope was to clear enough profit to pay for the hospital bills and eventually the tuition.

After an initial investment turned a profit of $9,700(about US$120), Bertha invested $162,000  (US$2,000) in October 2020.

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“That was the beginning of a nightmare,” she says. The company vanished without paying investors.

Bertha, who asked to be referred to by her middle name due to fears of stigma, seems to have been swindled through one of myriad fraudulent cryptocurrency schemes.

With the rise in popularity of these currencies and the underlying blockchain technology, scammers around the world are cashing in on the buzz with promises of easy and lofty profits.

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Data from United States-based research firm Chainalysis shows that scammers earned US$7.7 billion worth of cryptocurrencies from investors worldwide in 2021 — an 81 percent increase compared with 2020.

In Zimbabwe, inflation has depleted savings and pensions over the past decade, and a confusing stream of new currencies eroded faith in the banking sector.

As a result, cryptocurrencies are particularly attractive in the country, despite much of the population understanding little of the associated risks.

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“For Zimbabweans, cryptocurrency is a way of safeguarding their money from government interference,” says Prosper Mwedzi, a Zimbabwean financial lawyer based in the United Kingdom.

“It’s an opportunity, knowing how the system has operated before where people wake up to find bank balances converted into local currency.”

His comment refers to the 2018 Reserve Bank of Zimbabwe directive that converted the country’s U.S.-dollar bank balances into Zimbabwe dollar balances.

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Before that, Zimbabwe used a pegged exchange rate of 1-1 between the US dollar and the local Zimbabwean dollar.

Cryptocurrencies are digital coins that people can use to pay for goods and services.

These coins are stored and exchanged on a blockchain, a secure network that operates without a central authority, such as a bank.

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That means users can send coins to one another without the need for an intermediary.

And without a central authority storing data about its customers, blockchain users can remain anonymous.

In 2018, Zimbabwe banned financial institutions from trading in cryptocurrency, joining a handful of nations that have enacted similar restrictions.

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Kumbulani Shirichena, head of communications at the Reserve Bank of Zimbabwe, says in an email that “there are concerns that crypto currencies’ growing popularity could undermine oversight of monetary policy, capital flows and illicit activity if left unchecked.”

As cryptocurrencies go mainstream, more countries are moving to regulate the market in order to wield some control over these assets without completely hindering innovation.

But regulating a highly volatile and decentralized system remains a challenge for most governments.

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In Zimbabwe, experts say, prohibition has made it easier for scammers to proliferate.

“There is no way of having oversight over these assets given the ban on banks from getting involved,” says Mwedzi.

“If the banking sector were allowed to get involved, they would have to meet certain requirements, but we need tech expertise.”

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With banks forbidden to offer cryptocurrency services, it’s difficult for Zimbabweans to deposit or withdraw money, says Yananai Chiwuta, head of growth at CoinMadi, an African cryptocurrency exchange.

In such an environment, scammers may not only promise inflated return rates but also facilitate payments and withdrawals.

As of November 2021, Zimbabwe Republic Police had received 892 complaints related to cryptocurrency scams, says spokesperson Paul Nyathi.

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While Zimbabwe’s laws on fraud could apply to such cases, tracing the scammers in these informal investment schemes is difficult, as they operate anonymously.

“Desperation by Zimbabweans has led them to being this gullible,” says Confidence Nyirenda, a 27-year-old Zimbabwean who since 2017 has run a cryptocurrency exchange company in Harare.

“Cryptocurrency is not a get-rich-quick scheme. If it’s too good to be true, then it’s a scam.”

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Nyirenda facilitates cryptocurrency transactions by receiving cash and then funding the investor’s wallet with bitcoin.

He says he processes about 150 such transactions a day.

Consumers associate the same types of risk with cryptocurrency investments as with other services, according to a 2021 report by the World Economic Forum.

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But cryptocurrencies have specific challenges — such as price volatility, irreversibility of transactions and the difficulty of enforcing accountability when no third-party regulator is involved.

Despite its risks, cryptocurrency has the potential to be a lifeline for people globally, either for receiving remittances from abroad or for securing savings amid acute local currency devaluation.

More data by Chainalysis, the research firm, shows that “Central and Southern Asia, Latin America and Africa send more web traffic to peer-to-peer [crypto exchange] platforms than regions whose countries tend to have larger economies, such as Western Europe and Eastern Asia.”

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During a trip to Dubai in September, Mthuli Ncube, Zimbabwe’s minister of Finance and Economic Development, used Twitter to laud the potential of blockchain technology in lowering the cost of remittances, which in 2020 represented  seven percent of Zimbabwe’s gross domestic product, according to World Bank data.

But in February 2021, when the Reserve Bank of Zimbabwe introduced a policy to support innovations in the financial sector, crypto and digital currencies were listed as ineligible for innovation.

In his email, Shirichena explains that they were excluded because “crypto assets and digital currencies are novel innovations in the world of finance whose risks to the financial system are not yet fully known.”

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For now, Shirichena says, the bank has adopted a “cautious approach” to “study and understand crypto assets and digital currency.”

He adds that scams and fraud “should be dealt with separately by the necessary legislation.

” The Ministry of Finance and Economic Development declined to comment, instead referring all inquiries to the Reserve Bank.

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Despite the bank ban, many Zimbabweans continue to purchase cryptocurrency.

“You’ll be shocked if you see our clientele,” says Nyirenda. “We have even very old people who purchase crypto.” – Global Press Journal 

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Southern Africa’s Sustainable Use Coalition slams CITES CoP20 decisions as “punishing success” and “killing with kindness”

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BY NOKUTHABA DLAMINI 

The Sustainable Use Coalition Southern Africa (SUCo-SA) has issued two strongly worded statements criticising decisions made at the CITES CoP20 conference in Uzbekistan, accusing Parties of undermining conservation success in southern Africa and ignoring evidence from range states.

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In the first statement, SUCo-SA Vice Chair and the Confederation of Hunters Association of South Africa CEO Stephen Palos condemned the vote rejecting a proposal to remove the abundant southern giraffe from Appendix II. The proposal received 49 votes in favour, 48 against and 38 abstentions — including the 27-member EU bloc — falling short of the two-thirds majority required.

Palos called the outcome “yet another travesty of justice at the CITES CoP,” arguing that the decision reflects “a world dominated by an emotion before science philosophy in conservation.”

He singled out opposition from several African countries, saying:

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“The most vocal objections made came from African countries with shocking records in conservation… where poaching, conflict, poverty, and desperation have decimated their wildlife, and now sell their souls to global anti-use/animal-rightist NGOs.”

Palos said the Chair “overlooked Eswatini and allowed none of the observer organisations an opportunity to speak,” forcing South Africa to call for a vote despite having “superbly presented” the proposal.

According to SUCo-SA, evidence showed that southern giraffe populations in Angola, Botswana, Eswatini, Malawi, Mozambique, South Africa, Zambia and Zimbabwe are “overwhelmingly increasing, with only one population reported as stable, and not a single population showing decline.”

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The statement said this success is the result of “decades of effective national legislation, management frameworks, investment by private and community custodians, and sustainable-use incentives.”

But SUCo-SA argues that countries with no giraffe populations or poor conservation performance are influencing decisions that harm nations managing wildlife successfully.

“Once again, CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora) has managed to punish success and reward failure in conservation. And real people in southern Africa pay the price in hunger and deprivation.”

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SUCo-SA: CITES Parties “killing with kindness” on rhino horn and ivory

In a second statement titled “CITES Parties Killing with Kindness at CoP20 – Rhino Horn & Ivory,” the SUCo-SA Executive criticised what it described as a predictable pattern where CITES Parties praise southern African conservation results while refusing to support related proposals.

The coalition said:

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“They start by congratulating southern African range states for their ‘outstanding successes’… And then, without pause, they immediately announce that they will not support the proposal.”

The statement argued that many countries rejecting downlisting proposals come from regions where rhino or elephant populations have “collapsed or are entirely absent,” and that 47 years of trade bans and demand-reduction campaigns have failed.

“If 47 years of demand-reduction campaigns and trade bans have not saved rhino or elephants, at what point do we acknowledge that this approach is not working?” the coalition asked.

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The statement questioned the positions of the EU, UK and USA, asking why they continue to “punish African conservation successes while rewarding failures” and why they “elevate the views of non-range states and discount the data, management systems, and lived realities of the countries that actually protect these species on the ground.”

According to SUCo-SA, southern African countries deserve practical support, not diplomatic praise that leads to policy obstruction.

“In the most diplomatic but patronising manner, southern African countries are told, in effect, to ‘go to hell, but enjoy the trip.’ This is what we mean when we say they are killing with kindness.”

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The coalition said African states are “not asking for applause; they are asking for recognition of proven results” and the policy space to continue what works.

The statement concludes with a challenge to the global convention:

“CITES must decide whether it wants to remain a forum guided by evidence and sovereignty, or one led by political theatre and external pressure. The future of rhino and elephant conservation depends on that choice.”

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Hwange man sentenced to 40 years for raping two minors

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BY STAFF REPORTER

A 32-year-old man from Victoria Falls has been convicted by the Hwange Magistrates’ Court and sentenced to 40 years imprisonment  for raping two minors.

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The man, whose name has been hidden to protect the image of the victims was being tried by the prosecutors on two counts of rape leading to the conviction.

The court heard that the accused committed the offences against two young female juveniles, aged nine 10 years old who are sisters on the 25th of September this year.

“The offender who was at his place of residence called the victims who were going to school to come to his place of residence to collect baobab fruits,” the National Prosecuting Authority said in a statement.

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“They both got into the offender’s place of residence and the offender instructed the victims to get into his bedroom hut.

The victims complied and the offender followed them into his bedroom and closed the door from inside and raped them.”

The matter came to light on the same day when a relative informed the victim’s grandmother and father that she saw the victims leaving the offenders bedroom and they revealed what had transpired, leading yo his arrest.

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World AIDS Day: UN Chief says ending AIDS by 2030 “is within grasp”

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BY SONIA HLOPHE

United Nations Secretary-General António Guterres has marked World AIDS Day with a message urging world leaders to scale up investment, confront stigma and ensure that lifesaving HIV services reach everyone who needs them.

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In his statement, Guterres said this year’s commemoration serves as a reminder that the world “has the power to transform lives and futures, and end the AIDS epidemic once and for all.”

He highlighted the major gains achieved over the past decade.

“The progress we have made is undeniable,” he said, noting that “since 2010, new infections have fallen by 40 per cent” while “AIDS-related deaths have declined by more than half.” Access to treatment, he added, “is better than ever before.”

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But despite this global progress, the Secretary-General warned that the crisis is far from over.

“For many people around the world, the crisis continues,” he said. “Millions still lack access to HIV prevention and treatment services because of who they are, where they live or the stigma they endure.”

Guterres also raised concern over shrinking resources:

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“Reduced resources and services are putting lives at risk and threatening hard-won gains.”

He said ending AIDS requires fully supporting communities, scaling up prevention and ensuring treatment for everyone.

“Ending AIDS means empowering communities, investing in prevention and expanding access to treatment for all people.”

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He also called for innovation to be matched by real-world delivery:

“It means uniting innovation with action, and ensuring new tools like injectables reach more people in need.”

Above all, he stressed the need for a human-rights centred response so no one is excluded.

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“At every step, it means grounding our work in human rights to ensure no one is left behind.”

With the 2030 global deadline approaching, the UN chief said success is still possible if momentum is sustained.

“Ending AIDS as a public health threat by 2030 is within grasp. Let’s get the job done.”

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