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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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Victoria Falls based lawfirm donates football kits to Division Two teams

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BY NOKUTHABA DLAMINI 

A Victoria Falls based law firm has donated football kits to twelve Division Two soccer players in Hwange West district in an effort to fight drugs and substance abuse among youths in the communities. 

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According to the law firm’s director Thulani Nkala, of Dube Nkala & Company Legal Practitioners, the donation aims to promote a healthy society where teenagers can engage in sports even after school. 

Division Two falls under the Zimbabwe Football Association and it comes after Division One which is also below the premier league.

“As you are all aware that drugs are causing problems in our town, we felt that we can make a difference to counter this by donating some football kits and other equipment for our youths to use as they play,” Nkala said. 

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“We hope that this will be an ongoing partnership, but for now we will only be sponsoring for this upcoming season which is about to start and we shall renew as the next seasons approach on condition that we have mutual understanding which is based on respect because we will not want a situation where teams fight each one another.”

He said apart from the kits and trophy, the teams will play for a prize money at the end of the season.

Zimbabwe Football Association (ZIFA) Matabeleland North provincial acting chairman Clevious Ncube said the gesture will go a long way in nurturing young talents in the Division Two league, whom most of them are school going children and teenagers.

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Prosper Neshavi, provincial ZIFA board member, lamented lack of interest in football sponsorship even at national level.

He said this has been part of the reasons why the country has been kicked out of the Federation Internationale  Football Association (FIFA). 

FIFA President Giovanni Infantino last year said the association had to suspend Zimbabwe and Kenya for government interference in the activities of the football associations. 

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“They know what needs to be done for them to be readmitted or for the suspension to be lifted. “Infantino said last year. 

Meanwhile, as part of efforts to introduce sports tourism in Victoria Falls, tourism operators and other sports officials have joined hands to form a committee that will spearhead the allocation of land by the Victoria Falls City Council for sporting activities such as the football, tennis, boxing and rugby among other sporting disciples. 

This was revealed by the committee chairperson Mthabisi Ncube who lamented lack of sporting facilities in the city. 

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He revealed that through their negotiations with the council, a certain portion of land has been set aside for the project. 

 

Their end goal is to see the town hosting local and international teams, which will inturn boost the country’s tourism GDP. 

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“As we say that we are the tourism capital of Zimbabwe and possibly the better capital of Africa and we fail to have a 10 000 seater stadium,” he said. 

“We can not fail to host training matches such as the rugby, football where teams such as the Kaizer Chiefs Football Club can decide to come to Victoria Falls as they prepare ahead of the season, so their coming will help us a lot because all the businesses from accomodation to the salons and vegetable vendors will benefit from their presence, but it cannot happen when we do not have the facilities. 

“Our vision is to have a complex where we can host international games, international meetings for cricket, rugby, tennis. We want to be like what Capetown (South Africa) does where they have no free weekend in arts and sporting activities.”

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Gaseous coal substances exposes Hwange residents to TB

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BY NOKUTHABA DLAMINI 

In the scorching sun, Litha Ncube and her nine-year-old daughter are armed with hoes and shovels as they make way to a dumpsite to scavenge for a precious by-product of coal, coke.

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The poverty-stricken widow from Hwange’s Madumabisa Village says she has no option but to scrounge for the product in a life-threatening environment that has claimed the lives of many. This is her only means of survival. 

As she digs the dumpsite without any Personal Protective Clothing (PPE) such as the surgical mask, her daughter’s task is to pick and separate the coke from the chaff and fill a 50-kilogramme sack. This quantity of coke fetches US$5, which she says helps to sustain her family.

Her husband died at the height of Covid-19 pandemic in 2021 after he was diagnosed with Tubercolosis (TB) which he  contracted due to inhaling of coal dust at the same dumpsite. 

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Ncube was also diagnosed and it took her over 12 months to fully recover. 

“If I stop, who will support my children?” Ncube quizzes as she continues to dig. 

 

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Ncube is among the many women in Hwange who have resorted to trespassing into the Hwange Colliery Company Limited (HCCL) dumpsite in search of coke, which they resell to make ends meet.

TB is one of the leading causes of death in Zimbabwe. 

According to Community Working Group on Health, about 6 300 Zimbabweans die of TB each year despite it being preventable and curable.

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The African region has the second-highest tuberculosis burden worldwide, after Southeast Asia. under the World Health Organisation End Tuberculosis Strategy, countries should aim to reduce TB cases by 80% and cut deaths by 90% by 2030 compared with 2015.

According to National Mine Workers Union of Zimbabwe president Kurebwa Javangwe Nomboka, gaseous substances from coal dusts have left many Hwange villagers and residents exposed to TB, although many are not documented. 

‘The prevalence of TB is very high, but undocumented in the areas we have done programs which are around the mining community of Hwange,” Nomboka told VicFallsLive

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“Coal is the commonly mined mineral in the area  and is well known for its combustible nature and the emission of dangerous poisonous gases.”

Nomboka says apart from residents such as Ncube, the scourge is higher in the mining companies, largely Chinese owned. 

He says the mostly affected are underground miners and even those involved in the processing of coal to coking coke.

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” Examples of areas with a high risk of TB which my team have visited are HC, Hwange Coal Gasification and South Mining,” he revealed. 

“The environment in these mines is heavily embroidered or engulfed with coal dust and gaseous substances which causes a high risk of TB and other related diseases like Pneumoconiosis.” 

These heavy dusts and gaseous substances, Nomboka says are also evident in the residential areas and thus posing a risk to the families of miners.

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” At Hwange  Coal  Gasification at times the whole complex is engulfed with gaseous substances to an extent that you won’t even be in a position to see buildings or people around you,” 

“Besides the dust and gaseous substances there is immense heat that comes out from the furnaces and the personnel working such under environments are spotted with improper and inadequate PPEs and the issue  in these mines has become of lesser priority as it is only acquired when we raise a red flag as a union.”

Nomboka said the PPEs being acquired does not meet the standard required under the Mining industry safety regulations leaving workers vulnerable to contracting TB and other related diseases.  

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” As a trade union we have reigned in on these defaulting companies to comply with the mining safety regulations and those found not to be in compliance with the regulations have had to be litigated against in order for them to comply,” Nomboka revealed. 

“The country needs to adopt stern measures on those who fail to comply with mining safety regulations by enacting laws which provide for hefty fines for companies who fail to provide safety nets for their employees and proper and adequate protective clothing.”

 

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Engage communities in TB planning, Government urged

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BY NOKUTHABA DLAMINI 

The Community Working Group on Health (CWGH) has called on the government to engage communities in planning and implementing  of strong, integrated Tubercolosis (TB) mitigation as part of response measure, amid revelations that over 6 000 Zimbabweans succumb to the pulmonary disease every year. 

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The call was made by CWGH, a health watch organisation executive director Itai Rusike ahead of the World TB Day commemorations.

Rusike said although there has been some efforts made towards ending TB, a killer disease and highlighting further action that is needed to defeat the life-threatening disease, communities should be part of the action. 

“TB remains a major obstacle to attaining the SDG vision of health, development, and prosperity for all in Zimbabwe,”Rusike told VicFallsLive.

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“Our country has an estimated 21 000 new cases of TB each year, and 3.1% of these are drug resistant. 

” 6300 Zimbabweans die of TB each year despite it being preventable and curable.”

According to health activists, most of these are recorded in mining towns and communities where there is no adequate Personal Protective Equipment. 

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Rusike also called for more scientific research and funding towards eradication of pulmonary disease including the Covid-19 pandemic. 

“Funding for research on TB in Zimbabwe is minimal, and new tools to prevent, diagnose, and treat TB are urgently required,” he said.

“There is an opportunity to leverage Covid-19 infrastructure and investments to improve the TB response, integrate TB and Covid-19 testing and tracing, and strengthen efforts to overcome the barriers that people continue to face when accessing TB services.”

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According to studies,  the advent of Covid-19, three years ago eliminated 12 years of progress in the Global Fight against TB as governments, due to its response to the pandemic pushed aside TB outreach and services, resulting in a 20% drop in diagnosis and treatment worldwide.

“This World TB Day 2023 (March 24) we emphasize that “Yes! We can end TB” – aims to inspire hope and encourage high-level leadership, increased investments, faster uptake of new World Health Organisation recommendations, adoption of innovation, accelerated action and multisectoral collaboration to combat the TB epidemic,”Rusike said.

“It is time for the government to fulfill its commitments towards defeating TB. 

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“The government should engage communities in planning and implementing strong, integrated TB and Covid-19 mitigation and response measures.” 

 In addition, he said, there is need to increase financing for TB prevention and care, innovations in care delivery, and research and development, including for new TB vaccines to prevent the development of Drug Resistant TB. 

” The theme brings attention to tuberculosis (TB) and our collective power to end TB by 2030 and therefore reach the SDG goals,” he added.

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“It brings hope and builds on the amazing work done in 2022 by Zimbabwe as one of the TB High Burden Countries to recover from the impact of Covid -19 while ensuring access to TB treatment and prevention.

” It is time to take urgent action to get back on track and accelerate collective efforts to fulfill the 2022 United Nations targets on TB to defeat the disease and save lives.

“The commitments made, and targets set by Heads of State and other leaders to accelerate action to end TB must be kept even in Covid-19 crisis and should be backed by adequate investments (and) this will help to protect the lives of thousands of peoplesuffering from TB and to prevent further loss of gains made in the fight against TB.

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” Not one more person should die from TB because it is a preventable and treatable disease.” 

 

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