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RBZ says banks’ lending ban temporary

Published

3 years ago

May 10, 2022

BY NELSON BANYA

Zimbabwe’s freeze on bank lending is a temporary measure which is meant to contain inflation and stabilise its economy, central bank governor John Mangudya told state television on Tuesday.

President Emmerson Mnangagwa on Saturday ordered the suspension with immediate effect, saying the move was meant to stop speculation against the Zimbabwean dollar, which has been rapidly devalued on a thriving black market.

“We know this is a painful, but necessary, measure. It was necessary because of the increase in inflation.

“Some entities were now using funds from banks to purchase foreign currency,” Mangudya told the ZBC.

“It’s a temporary, necessary measure to ensure that there is sanity in terms of taming inflation.”

Zimbabwe’s inflation has started to rise again, with year-on-year inflation at 96 percent in April, up from 61 percent at the beginning of the year, mainly due to a rapidly weakening local currency.

Analysts said in a research note that the lending freeze threatens the survival of the country’s banks.

“The government is using a blunt approach to try and address a long-standing currency conundrum,” the analysts said, adding: “Banning lending activities will threaten survival of banks as this will wipe out 20-50 percent of their incomes.”

The BancABC note said that the freeze could lead to shortages of goods, further price increases and job losses. – Reuters

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National

Zimbabwe roads claim 24 lives over Heroes holiday

Published

3 hours ago

August 14, 2025

VicFallsLive

BY NOKUTHABA DLAMINI

A total of 24 people lost their lives on Zimbabwe’s roads during the 2025 Heroes and Defence Forces holidays, according to statistics released by the Zimbabwe Republic Police.

The police reported 196 road traffic accidents, 13 of which were fatal, between August 11 and 13. This represents a significant increase from the previous year’s figures, which saw 149 accidents and eight fatalities.

Reckless driving, mechanical faults, speeding, and overtaking errors were cited as major causes of the accidents.

Two major accidents occurred during the period, including a fatal crash on the Mutare-Masvingo Road that claimed the lives of six Zion Christian Church congregants. Another accident on the Bindura-Shamva Road resulted in four fatalities and 17 injuries.

The police have urged motorists to prioritize vehicle maintenance, avoid speeding and reckless overtaking, and adhere to road rules and regulations to prevent further loss of life.

In the community

Dete teen convicted for theft

Published

3 hours ago

August 14, 2025

VicFallsLive

BY WANDILE TSHUMA

A Dete teenager has been convicted of breaking into a local shop and stealing goods and cash worth US$131.

Artwell Ncube, 18, of Lupote in Dete, was found guilty of aggravated unlawful entry by the Hwange Magistrates Court.

According to court records, Ncube used an unknown object to open the locked shop door between May 20 and 25, 2025. Once inside, he stole groceries, airtime, and US$50 in cash.

The shop owner unexpectedly returned to the premises on May 25 at midnight and found Ncube inside. The teenager fled, leaving some stolen items behind.

A subsequent police investigation led to Ncube’s arrest. Property worth US$31 was recovered.

Ncube was sentenced to 12 months’ imprisonment, which was fully suspended on condition that he repays ZWG3 516.04 to the complainant within six months and performs 110 hours of community service at Lupote Clinic which he started on Wednesday.

In the community

Nightclub nightmare: Nkayi woman stabs man in brutal attack

Published

3 hours ago

August 14, 2025

VicFallsLive

BY STAFF REPORTER

A 29-year-old Nkayi woman has escaped jail time after being convicted of assault for stabbing a man with a broken beer bottle during a violent altercation at a nightclub.

The incident occurred end of last month, at around 11 pm, when the victim, a 26-year-old man from Cowdray Park, was playing snooker with a friend.

The offender’s aunt caught the attention of the victim’s friend, provoking the offender, who struck the victim on the arm with an empty beer bottle.

The victim attempted to flee, but the offender pursued him, stabbing him once in the back with a broken beer bottle. The victim was left unconscious and rushed to Nkayi District Hospital, where he remains under medical care.

The Nkayi Magistrates’ Court sentenced the offender to 15 months’ imprisonment, suspending three months for five years on condition of good behavior.

The remaining 12 months were wholly suspended on the condition she performs 420 hours of community service.

The National Prosecuting Authority of Zimbabwe has urged people to resolve disputes peacefully, emphasizing that violence has no place in communities.