Connect with us

Slider

Cryptocurrency scammers target desperate Zimbabweans

Published

on

BY VIMBAI CHINEMBIRI

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

Advertisement

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.

Advertisement

“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.

Advertisement

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.

Advertisement

“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.

Advertisement

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.

Advertisement

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.

Advertisement

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.

Advertisement

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.”

Advertisement

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.

Advertisement

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.”

Advertisement

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.

Advertisement

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.”

Advertisement

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.”

Advertisement

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.

Advertisement

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 

Advertisement

Slider

Tens of Thousands in Zimbabwe Go Hungry as the Rains — and US Aid — Hold Back

Published

on

Tanayeishe Musau eats baobab porridge after school at his home in Mudzi, Zimbabwe, where the dish has become a daily staple amid worsening drought and hunger. Once a simple supplement, baobab porridge is now a primary meal for families like his, following widespread food shortages and the suspension of international aid.

BY LINDA MUJURU

This story was originally published by Global Press Journal.

Advertisement

Agnes Tauzeni stands on her parched field. She is a mother to two children, and is expecting another. But now, in a time that might otherwise have been joyful, her hopes wither like the struggling crops before her.

 

Three times she’s gambled on the rains; three times the sky has betrayed her. Her first two plantings failed. The soil was too dry to sustain life. Though her third attempt yielded a few weak shoots, they offered little promise of a meaningful harvest. El Niño-driven droughts have disrupted once-reliable rains, leaving Tauzeni’s family and many like hers struggling to feed themselves.

Advertisement

 

“I am always hungry,” Tauzeni says.

 

Advertisement

She worries about the health of her unborn child, based on how little nutrition she consumes herself.

 

Adding to this, food aid, previously funded by the US Agency for International Development, halted suddenly in January. That transformed what was already a struggle into a desperate battle for survival.

Advertisement

 

The food aid ended when US President Donald Trump, on his first day in office, issued an executive order that paused nearly all US foreign aid, most of which was administered by USAID. That agency is now all but defunct.

 

Advertisement

Food aid in Zimbabwe was an ongoing area of funding for USAID. In November 2024, the agency announced $130 million for two seven-year programs, implemented by CARE and Cultivating New Frontiers in Agriculture, that would provide food aid and other related support to areas of Zimbabwe most in need. The programs, which stopped, were just part of an ongoing slate of activities designed to help Zimbabwe’s neediest people.

 

About 7.6 million people in Zimbabwe — nearly half the country’s population — need humanitarian assistance, according to a 2025 UNICEF report. Of those, nearly 6 million, like Tauzeni, rely on subsistence farming.

Advertisement

 

Through the support of organizations with funding from USAID, people previously received cereals, edible seeds, oil and food vouchers.

 

Advertisement

“A sudden withdrawal can put the entire community in a dire situation,” says Hilton Mbozi, a seed systems and climate change expert.

 

Tauzeni recalls that her community used to receive food supplies such as beans, cooking oil and peanut butter to help combat malnutrition.

Advertisement

 

When Tauzeni got married in 2017, her fields promised abundance. Her harvests were plentiful, and her family never lacked food. Now, those memories feel like whispers from another world. The past two agricultural seasons, those harvests have been devastatingly poor.

 

Advertisement

With an empty granary and dwindling options, Tauzeni’s family survives on the same food every day: baobab porridge in the morning and sadza with wild okra in the evening. But Tauzeniworries whether even this will be on the table in the coming months.

 

“The little maize I have, I got after weeding someone else’s crops, but that won’t take us far,” she says.

Advertisement

 

Tauzeni says a 20-kilogram (44-pound) bag of maize costs US$13 in her village, an amount out of reach for her. Her only source of income is farming. When that fails, she has no money at all.

 

Advertisement

Hunger like Tauzeni experiences is widespread. Some families now eat just once a day.

 

Headman David Musau, leader of Musau village where Tauzenilives, says some people in his village did not plant any seeds this season, fearing losses due to the low rainfall. The government provides food aid inconsistently, usually 7 kilograms (15 pounds) of wheat per person for three months.

Advertisement

 

“It’s not enough, but it helps,” he says.

 

Advertisement

But without any other food aid, survival is at stake, he says. “People will die in the near future.”

 

Advertisement
Continue Reading

Slider

Zimbabwe’s new mothers face extortion for ‘free’ child health cards

Published

on

Photo credit: Gamuchirai Masiyiwa, GPJ Zimbabwe

BY GAMUCHIRAI MASIYIWA

Summary: The quiet return of maternity fees and the black-market sale of essential documents put extra burdens on mothers as they struggle to navigate a broken system.

Advertisement

First-time mother Connie Jowastands with her 3-month-old baby nestled against her back, chatting with other mothers in line. Like many women at this crowded clinic in Harare’s Mabvuku suburb, Jowa is trying to get a Child Health Card, which was unavailable when she gave birth at a public hospital, and was still out of reach at her local clinic. Health cards are mysteriously out of stock.

 

But they can be bought under the table, if you know who to ask and are willing to pay.

Advertisement

 

Zimbabwe’s Child Health Cards, meant to be free to new mothers, are crucial documents that track babies’ growth, vaccinations and medical histories. Without them, each clinic visit becomes a reset button. Inquiry into the child’s medical history starts from scratch. Since July 2024, the cards have disappeared from health facilities across Harare’s central hospitals and 42 council clinics — even though the card’s producers say they’re making enough to meet demand. This artificial shortage has birthed a shadow market where clinic staff quietly sell this essential document to desperate mothers. This sort of nickel-and-dime bribery exposes deep cracks in a health care system that’s already failing the most vulnerable people.

 

Advertisement

What started as a clandestine operation has become an open secret.

 

“When cards arrive at a clinic, they’re kept by the sister in charge. But it’s usually nurse aides or junior staff who sell them, working in cahoots with other staff members,” says Simbarashe James Tafirenyika, who leads the Zimbabwe Municipality’s Nurses and Allied Workers Union.

Advertisement

 

Someone who sells 100 cards can pocket around US$500, she says, and none of that money goes to the government of the council.

 

Advertisement

The going rate for the Child Health Card is US$5, say several mothers who spoke to Global Press Journal.

 

Medical Histories on Scraps of Paper

Advertisement

 

When the system works as designed, every mother receives a Child Health Card when her baby is born. Now, most mothers must track their infants’ medical histories on scraps of paper.

 

Advertisement

Harare’s council clinics alone deliver more than 3,000 babies every month, with each mother left scrambling for documentation.

 

“I feel hurt,” Jowa says. “I want to know what vaccines my child has received and their purposes, but I just can’t get that information.”

Advertisement

 

A nurse aide assistant at one of the council clinics has witnessed this shadow market.

 

Advertisement

“If a nurse is selling, they ask the mother to be ‘skillful’ if they need the card,” says the assistant, who requested anonymity for fear of retribution. In Zimbabwe, “skillful” is a common euphemism for paying small bribes.

 

While the Ministry of Health and Child Care is supposed to supply the cards for free, Prosper Chonzi, the City of Harare’s director of health, admits supplies have been erratic for six months and that people have complained about being forced to purchase these cards. Clinic workers may be exploiting the known shortage and coordinating among themselves to sell the cards rather than providing them for free, he says.

Advertisement

 

“We can’t rule that out,” he says.

 

Advertisement

The card shortage coincides with the quiet return of maternity fees in public hospitals. Though not officially announced, hospitals have begun billing mothers after delivery — a policy change the government would neither confirm nor deny.

 

High Inflation, More Corruption

Advertisement

 

Between 2011 and 2024, more than 1 million pregnant women in the country delivered babies for free at health care clinics, under a scheme called results-based financing. Maternal mortality rates dropped during that time.

 

Advertisement

But these gains, partly achieved through better access to safe delivery services, face new hurdles as budget constraints and economic pressures reshape the health care landscape.

 

Even in 2021, a study from Transparency International Zimbabwe surveyed over 1,000 people in Zimbabwe and found that 74% had been asked to pay a bribe while trying to access health care services. A feeling of being underpaid amidst a deteriorating economy and high inflation was a key driver among health workers who solicitated bribes, which has been a rising trend, according to the study.

Advertisement

 

“The motivation for earning an extra income is strong especially in countries with a high rate of inflation,” the study states.

 

Advertisement

Zimbabwe’s health care system faces chronic challenges, including an exodus of health workers to other countries, inadequate funding, drug shortages, obsolete infrastructure and more. In 1991, the government introduced user fees across public institutions as part of an economic structural adjustment program. The government abolished the fees in 2011, only to partially reinstate them around 2013.

 

Prudence Hanyani, a community activist in Harare, says the reintroduction of user fees in public hospitals will burden women who already shoulder extra costs, like paying for midwives, so they can get better treatment when giving birth.

Advertisement

 

“Maternal health services should be free,” she says, “because giving birth is a service for the nation that contributes to the country’s population.”

 

Advertisement

Mothers Pay the Price

 

Valerie Shangwa, who gave birth four and a half months ago at a private maternity hospital, still has no card for her daughter.

Advertisement

 

“You know how difficult it is to keep a paper,” she says. “When nurses ask about last month’s weight, you end up guessing, and that distorts the whole record.”

 

Advertisement

Charlton Prickise, technical director at Print Flow, says his company sells Child Health Cards only to government-authorized health facilities and faces no shortages.

 

“The shortages mean health facilities simply aren’t coming to get them,” he says.

Advertisement

 

Though Print Flow hasn’t detected leaks, Prickise recalls finding other versions of this card on the market two years ago, possibly from a nongovernmental organization. Print Flow isn’t the sole supplier of the cards, and they haven’t received any government orders recently.

 

Advertisement

In a written response to Global Press Journal, Donald Mujiri, spokesperson for the Ministry of Health and Child Care, said the shortage of Child Health Cards is due to supply chain inefficiencies and insufficient donor funding. The cards, he says, are procured with government funding and aid from supporting partners such as the United Nations Children’s Fund. Nevertheless, Mujiri says, the ministry needs to strengthen the supply chain management system at all levels and proactively mobilize resources for procuring the cards.

 

Meanwhile, mothers wait — or pay the price. Faith Musinami, 26, delivered her daughter in July 2024. An orderly told her the clinic only had cards for boys, but if she wanted, they could organize one for US$5. Musinami had not budgeted for the cost. She sacrificed the last penny she had.

Advertisement

This story was originally published by Global Press Journal.

Advertisement
Continue Reading

National

Ranger killed by elephant in Kariba

Published

on

BY NOKUTHABA DLAMINI 

A 62-year-old ranger, Josphat Mandishara, was tragically killed by an elephant in Kariba yesterday.

Advertisement

Mandishara, who worked for the Zimbabwe Parks and Wildlife Management Authority (ZimParks), was on patrol in the Gatche-gatche area with fellow rangers and police officers.

At around 10 pm, Mandishara returned to the harbor where their boat was docked, and that’s when he encountered the elephant. The elephant charged at him, causing fatal injuries. His colleagues were nearby, resupplying at the Gatche-gatche Irrigation Scheme.

Mandishara’s body was taken to Kariba District Hospital for a post-mortem, and the incident was reported to the police.

Advertisement

ZimParks has sent a team to manage the problem elephant and prevent similar incidents in the future.

The Director General of ZimParks, Prof. Edson Gandiwa, and his team have sent condolences to Mandishara’s family, friends, and colleagues. Mandishara will be remembered for his dedication to wildlife conservation in Zimbabwe.

Advertisement
Continue Reading

Trending

Copyright © 2022 VicFallsLive. All rights reserved, powered by Advantage