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Zimbabwe imposes capital controls to stem currency’s slide

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BY RAY NDLOVU AND GODFREY MARAWANYIKA

 Zimbabwe’s President Emmerson Mnangagwa has imposed capital controls in an attempt to control the currency’s rapid depreciation.

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The Zimbabwean dollar has lost half of its value this year making it Africa’s worst performing currency.

Banks in the country have been ordered to stop lending with immediate effect “to minimise the creation of broad money that is prone to abuse for purposes of manipulating the exchange rate,” Mnangagwa said in a televised speech.

The move is meant to support the currency, amid a growing threat of the economy dollariszing for the second time since 2009 when the country last officially turned to the US dollars as hyperinflation soared.

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Old Mutual, the largest insurer in the country, in its quarterly economic brief warned that dollarisation is inevitable to stabilise prices.

Annual inflation in April soared to 96.4% from 72.7%.

“Banks shall with immediate effect not process third-party country foreign payments,” the president said, referring to payments made to an entity overseas via another country.

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“Third-party foreign payments are susceptible to illicit financial flows which prejudice the country of its hard-earned foreign currency resources.”

The new measures also reverse the administration’s propensity toward the US dollar which had the effect of undermining the local currency reintroduced in February 2019.

The state pays in part its employees salaries and Covid-19 allowances in the American currency.

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It had also paid annual bonuses in US dollars last year.

In the southern African nation most payments from fuel to food, medicine and school fees are pegged in US dollars.

Multiple exchange rates of at least 350 to 420 per US dollar are readily available on the parallel market.

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The local unit officially trades at 165.99 to the US dollar. – Bloomberg

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ZPC employees appear in court over US$3.8 million theft charges

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BY STAFF REPORTER

Two senior employees of the Zimbabwe Power Company (ZPC) in Hwange, have been charged with the theft of company property valued at US$3 896 000.

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Tawanda Mhaka and Ruth Chiyani were arraigned in court following an extensive investigation into the alleged theft, which reportedly involved an accomplice, Hardlife Zimwenje, who remains at large.

The allegations stem from an incident that occurred on the 22 and 23 of August last month, during which a truck was captured on CCTV at the ZPC’s Turbine Hall loading stolen goods. The footage revealed that the loaded items included 15 electric motors, 48 tonnes of brass pipes, and a metal container. Notably, the loading occurred without proper documentation, raising immediate red flags for investigators.

Ruth Chiyani, who serves as a Loss Control Assistant, is accused of overseeing the illegal loading but failed to provide any invoices to justify the movement of the company’s assets.

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Tawanda Mhaka, acting as the Stores Officer, allegedly instructed a boilermaker to cut an electric motor and a storage container into smaller pieces to facilitate their loading onto the haulage trucks.

The stolen goods were reportedly transported using trucks hired by Zimwenje, further complicating the network of theft. Both Mhaka and Chiyani were arrested last week , following a comprehensive investigation that revealed substantial evidence against them, including CCTV footage and removal authority documents signed by the defendants.

“According to investigators, the evidence against them is substantial, including CCTV footage and removal authority documents signed by the pair. The pair was remanded to the 26th of September.”the National Prosecuting Authority said in a statement.

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New 600 schools vs. reality: Mat North rural students trek over 10 kilometers for class

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BY WANDILE TSHUMA

In a recent parliamentary session, the Minister of Primary and Secondary Education, Torerayi Moyo, proudly announced that the government has constructed over 600 schools across Zimbabwe between 2022 and 2025. “I can happily inform this House that we have constructed more than 600 schools,” he stated, adding that “this year, we are targeting to build not less than 200 schools in 2025.”

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Despite this achievement, reports from Matabeleland North province reveal a stark contrast, where students in rural areas often walk over ten kilometers to reach their nearest secondary schools. For example, in Nkayi, learners from areas such as Menda and Mantshololozane must travel long distances to access secondary education at Tohwe and Nkayi High Secondary Schools, which are situated more than ten kilometers apart. This trend has persisted, making it difficult for many students to pursue beyond primary education.

While the Minister emphasized the government’s commitment to educational development, the experiences of many rural students paint a different picture. One legislator noted, “We were informed in this House that we have a deficit of 3 000 schools in Zimbabwe… what could have probably caused the mushrooming of these schools is the fact that there is a gap, and children do not have to walk long distances.”

In response to the issue of unregistered schools, Moyo addressed concerns, stating, “It is mandatory for any school to be registered before they can operate.” He explained that there is a dedicated department responsible for school registration and encouraged those operating illegally to regularize their status.

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Four men on the run after allegedly killing man over relative’s death

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BY STAFF REPORTER 

Four people from Silobela are being sought by the Zimbabwe Republic Police for their alleged involvement in a gruesome murder that took place on Sunday.

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The police are investigating the murder of 21-year-old Thandelwenkosi Moyo, who was allegedly killed by the four suspects after being accused of killing their relative.

According to the police report, the incident occurred at Munklenuck Village, Inyathi.

The accused have been identified as Nyoka, Zizimuzi, Mboya, and Aweli.

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The police report states that the four suspects took turns to attack the victim with booted feet and a sharp object, resulting in his death at the scene.

The Zimbabwe Republic Police is appealing to anyone with information about the whereabouts of the suspects to come forward and report to the nearest police station.

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