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Zimbabwe goes for the gold — the Mosi-ao- Tunya coin, that is — to fight high inflation

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BY LESLEY WROUGHTON

 With inflation soaring in Zimbabwe and the country’s currency in free-fall as people abandon it for the United States dollar, the government of President Emmerson Mnangagwa is fighting back with a novel strategy: gold coins.

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Starting Monday, Zimbabwe is selling one-ounce, 22-carat gold coins bearing an image of Victoria Falls, its world-famous natural wonder.

Each has a serial number, comes with a certificate and will be sold at a price “based on the prevailing international price of gold and the cost of production,” the central bank said in its announcement on July 4.

The coins will be tradable both in Zimbabwe and overseas, the bank said, and can be exchanged for cash.

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The goal is to reduce the quantity of Zimbabwe dollars in circulation to eventually restore its value.

What’s unknown is whether the approach has any real chance of success.

While gold is traditionally the ideal hedge against inflation and general economic uncertainty, no country has previously tried to tackle a weakening currency by selling gold coins.

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“In that sense, it is unusual,” said Carlos Caceres, the International Monetary Fund’s representative to Zimbabwe.

And with gold trading at US$1,710 per troy ounce late last week, institutional investors may be the coins’ principal buyers.

“No ordinary person will be able to afford it,” said Prosper Chitambara, a senior researcher at the Labour and Economic Development Research Institute of Zimbabwe.

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 “Right now, Zimbabweans are living hand-to-mouth.

 

Economic crises are nothing new to people in the southern African nation, who for more than two decades have faced hyperinflation, food and fuel shortages, staggering unemployment and other hardships.

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For many, the current crisis recalls the late 2000s under then-president Robert Mugabe. Annual inflation hit a record 489 billion percent in September 2008, and shoppers carried garbage bags full of bank notes to buy groceries.

Mugabe’s government was forced to print a trillion-dollar note, the largest in world history, before the country abandoned its currency in 2015 for the US dollar.

Mugabe was forced to resign in 2017, and the Zimabwe  dollar, as it is known, was reintroduced two years later. But as confidence in it again falls, Finance minister Mthuli Ncube has warned that businesses refusing to accept the currency from customers could lose their trading licenses.

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This year the Zimbabwe  dollar has already lost roughly 72 percent of its value against the US dollar.

Annual inflation reached triple digits in May, climbing again in June to 192 percent even as interest rates more than doubled — to 200 percent from 80 percent.

Chitambara said the government wants sales of the gold coins to moderate high demand for US  dollars, a key factor in the local currency’s depreciation.

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If that happens, in turn reducing some of the excess money supply and easing inflationary pressures, “then it would’ve been a positive experiment,” according to Caceres.

Still, Caceres said, the IMF prefers tried-and-tested tools as it advises member countries on best economic policies.

When confronting both inflation and a weakening currency, such tools include raising or cutting interest rates to control inflation and tweaking the amount of money that banks must set aside as reserves.

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Most of Zimbabwe’s inflationary pressures emanate from its currency troubles.

But rising prices are also being fueled by Russia’s invasion of Ukraine, which has sparked a global wave of inflation amid supply shortages of grains and fuel.

On the streets of the capital city of Harare, there isn’t much chatter about the new coin — the Mosi-ao-tunya, the traditional name for the Zambezi River waterfall. It translates to “the smoke that thunders.”

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Vendor Trust Muyererwa is focused on his increasingly difficult day-to-day life.

“In January, I would pay $10 U.S. to buy a pack of mealie meal, cooking oil, sugar, and salt and this would push me through the month,” said Muyererwa, 28.

 “Now, a bottle of cooking oil costs $5 U.S., and I cannot buy much more” with the remainder.

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Many people survive via a parallel, illegal market, with currency traders waiting on street corners and outside shopping centers waving bundles of US  dollars as well as Zimbabwe dollars.

Teachers and nurses went on strike in June and demanded that half their salaries be paid in US dollars to offset the tumbling local currency.

Retailers often are raising prices every other day, and more of them are starting to quote prices in US dollars.

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The Zimbabwe central bank last month offered bakers access to foreign currency to keep down the price of bread.

Hilda Musungu (33) has started charging US dollars for the traditional meals she sells from her sidewalk stand because “no wants the Zimbabwean dollar anymore.”

“Last December, $200 US was enough for me to buy food packs to sell the whole day,” she explained.

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“The cost has climbed to $270 U.S., and she has increased her own prices in turn.

“Sadly, fewer people are now coming to our place.” – The Washington Post

*Bernard Mpofu in Harare contributed to this report.

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National

Parliament weighs 40% community share in carbon credit deals

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BY NOTHANDO DUBE

Lawmakers in Zimbabwe are debating a comprehensive Climate Change Management Bill that supporters say will finally ensure rural communities are no longer “mere spectators” in the multi-billion dollar carbon credit industry.

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The Bill, which moved into its second reading, seeks to regulate carbon trading and protect the country’s natural resources from foreign exploitation.

Mutsa Murombedzi delivered a passionate plea for the legislation, arguing that it is a matter of “justice, survival and the dignity of our people”. “Climate change is not a distant stone,” Murombedzi told the House. “It is the flood that we see in Chimanimani, which sweeps away our schools… the heatwave that scotches our communities in Hwange, one silent drought that empties our granaries”.

A major point of contention and hope is the proposed 40% community share in carbon projects. Lawmakers argued that previous projects often left locals with nothing but “tsotso stoves or bicycles” while profits were “repatriated back to their countries, particularly those from the global north”.

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Master Makope applauded the move to bring transparency to a sector where deals were often done “without the knowledge of the authorities”.

“By having this policy framework, I believe our people are going to benefit,” Makope said.

“The Minister has to make sure that the villagers, the communities, should also have easy access to registration of their own projects because they are the ones who own these forests”.

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The debate also focused on the establishment of a National Climate Fund.

Susan Matsunga insisted on rigorous oversight, suggesting a biennial reporting cycle to Parliament to ensure progress is measurable. “This is about building a culture of transparency that ensures our climate goals are not just promises on paper but measurable achievements,” Matsunga stated.

Murombedzi added that “Climate finance must not vanish into corridors in Harare; it must flow to the ward level where resilience is built”.

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Binga

Lawmaker urges localized climate strategies for Tsholotsho, Hwange

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BY NOKUTHABA DLAMINI

A Shamva South lawmaker has called for a radical shift in climate change mitigation strategies, demanding that the government abandon “one-size-fits-all” projects in favor of solutions that respect the unique geography and culture of districts like Tsholotsho, Hwange, and Binga.

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During the debate on the Climate Change Management Bill, Joseph Mapiki argued that national programs often fail because they ignore local realities.

“We should look at our projects in terms of the area,” Mapiki told the National Assembly. “For example, in Tsholotsho and Hwange, where there are game parks, we cannot force them to do horticulture because there is no water. We should encourage them to engage in tourism”.

Mapiki also challenged the government’s staffing policies for climate initiatives, insisting that local language and cultural knowledge are essential for the success of any environmental committee.

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“If someone from Mashonaland Central goes and is incorporated in a Committee in Binga, it means that the Committee will not function well because that person will not be conversant with the language,” he argued.

He further emphasized that “First preference should be given to the locals to avoid taking people from other areas… because those other people will not be aware of the language and culture of the people there”.

Beyond staffing and local projects, Mapiki raised concerns about the influence of international donors on Zimbabwe’s environmental policy.

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He urged the government to ensure that the majority of climate funding is domestic to avoid “stringent measures and conditions” imposed by foreign entities.

“Our plea Hon. Minister, is that 98% funding for that Bill should be from Zimbabwe,” Mapiki stated.

“Foreign funding is hampering our progress”. His remarks were supported by other MPs who noted that climate change mainstreaming must include the “vulnerable communities” and “local authorities” who are on the frontlines of weather shocks in the province.

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Hwange

Hwange MP challenges government over Nambya teacher deployment

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BY NOKUTHABA DLAMINI

Hwange East legislator Joseph Bonda has called on the government to address what he describes as the marginalisation of the Nambya language in schools, arguing that current teacher deployment policies are undermining early learning in Matabeleland North.

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According to the National Assembly’s official record of 7 April 2026, Bonda formally asked the Minister of Public Service, Labour and Social Welfare to explain why trained Nambya-speaking teachers are not being employed in Hwange District while non-speakers are posted to the area.

He said the practice was “depriving children of receiving instruction in their mother tongue at the early education stage”, which he described as critical to both educational outcomes and cultural development.

Under Zimbabwe’s language policy framework, learners are expected to be taught in their mother language in the early grades. Critics say failure to align teacher deployment with local languages weakens that principle in practice.

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Despite the concerns raised, the matter remains unresolved in Parliament. The inquiry was deferred on 18 March and, at the latest sitting, the ministry had yet to provide a formal response.

Parents in the district say the issue has direct consequences for children’s performance.

“Our children are disadvantaged from the start,” said Ester Ncube, a parent in Jambezi under Chief Shana. “If a child cannot understand the teacher in Grade One, it affects everything that follows.”

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Community leaders argue that the debate goes beyond classroom instruction and touches on identity.

“Language is part of who we are,” said local elder Eliziya Vashe Shoko. “If schools do not teach in Nambya, we are slowly losing our identity. Government must take this seriously.”

Young professionals in the province say the challenge is not a shortage of qualified personnel but gaps in recruitment and deployment.

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“There are trained teachers who speak Nambya, Lozvi, Chidombe and other local languages, but they are not being deployed here,” said Lindiwe Sibanda, a recent graduate.

“At the same time, teachers from outside are brought in. It does not make sense. These languages should be prioritised so that communities feel a sense of belonging and respect.”

The language dispute forms part of a wider push for regional equity in Matabeleland North. Bonda has also raised concerns over local employment quotas in the wildlife sector and what he describes as the exclusion of Hwange from national weather forecasts. He argues that these issues reflect a broader mismatch between national policy and local needs.

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SOURCE: CITE

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