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Zimbabwe dollar’s second death predicted

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BY RAY NDLOVU

When Zimbabwean businessman Nigel Chanakira asked 100 chief executive officers at a seminar in Harare on January 27 if they were willing to use the local currency, only one raised his hand.

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That reluctance is a stark demonstration of the government’s failure to win confidence in the Zimbabwe dollar, the reintroduction of which Finance minister Mthuli Ncube has staked the stagnating economy’s recovery on.

For the second time in two decades, Zimbabweans are abandoning their local currency.

At restaurants, a simple request for “the rate” sees one’s bill halved if it’s met in hard currency, and supermarkets openly offer discounts for goods purchased in United States dollars.

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The government paid public workers their Christmas bonuses in dollars, and the revenue service collects a third of its income in greenbacks.

“We can’t deny the reality,” Chanakira, the founder and former CEO of now-closed bank Kingdom Financial Holdings Ltd., said in an interview.

“When you get the Zimbabwe dollar you spend it quickly. No one wants to save in that currency.”

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Between 2009 and 2019, Zimbabwe’s economy was dollarised after hyperinflation led the government to print trillion-Zimbabwe dollar notes before abandoning its currency, leaving the country’s name synonymous with economic malfunction.

While the subsequent dollarisation tamed price growth, it hurt businesses as neighbouring countries using their own depreciating currencies undercut Zimbabwean manufacturers.

“Zimbabwe had become uncompetitive by 2013 and was burdened by an expensive workforce,” John Legat, CEO of the country’s oldest brokerage, Imara Asset Management Ltd., said in a note to clients.

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In February 2019, the government dropped a peg that kept a precursor of the Zimbabwe dollar at parity with the US dollar.

In June, it was rechristened the Zimbabwe dollar and use of foreign currency was briefly outlawed.

Today the currency trades at 115 to the greenback, and more than twice that on the black market.

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While inflation slowed from a 12-year high of 837 percent in July 2020, it was at 61 percent in January, still rapidly eroding the value of the local unit.

Officials including Ncube, a former Oxford University lecturer, and Reserve Bank of Zimbabwe Governor John Mangudya, said government policy is to stick with use of the Zimbabwean dollar.

“The country is not re-dollarising,” Mangudya said in a interview on January 17. “We need to find a home for our currency.”

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Ncube and his ministry didn’t respond to requests for comment.

Alois Burutsa, the lone defender of the Zimbabwe dollar at Chanakira’s meeting, said in an interview that “without our own currency, our exports become uncompetitive.”

He’s general manager of Buy Zimbabwe, an organisation that promotes local goods.

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Capitulation

Yet central bank figures show that 44 percent of transactions in the country are conducted in greenbacks.

The American currency is used to pay for everything from fuel to food, passports, medicines and school fees.

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Econet Wireless Zimbabwe Ltd., the country’s largest mobile phone operator, offers additional airtime and data if purchases are made in US dollars.

With the Zimbabwe dollar untradeable outside the country, companies need foreign currency to pay for imported equipment, consumer goods, and to placate an increasingly dissatisfied workforce.

And it’s not only businesses that are seeking alternatives to the local currency.

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The government itself is increasingly finding it has to pay in US dollars if it wants to get things done.

Already it’s told public workers that they’ll be paid partly in hard currency this year.

According to Imara, the brokerage, 45 percent of infrastructure contracts are being met in dollars.

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“Dollarisation is the ultimate outcome of a failed economic policy,” said Gift Mugano, executive director at Africa Economic Development Strategies, a Harare-based consultancy.

The Zimbabwe dollar “will be in the graveyard” by June, he predicted. Imara says it’ll be largely obsolete by the end of the year.

Chanakira was more optimistic: he said the currency could survive for another two years. – Bloomberg

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National

Flooding risk rises in Zimbabwe, Southern Africa as heavy rains forecast

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Flooding is expected to intensify across parts of Southern Africa, including Zimbabwe, as heavy rainfall continues to affect the region, according to the latest weather hazards update from the Famine Early Warning Systems Network (FEWS NET).

In its Global Weather Hazards Summary for March 12–18, FEWS NET said moderate to locally heavy rainfall has been observed across several countries in the region, raising concerns about flooding in vulnerable areas.

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The agency said the rainfall has affected western, central and eastern parts of Southern Africa, including Angola, Zambia, Malawi, central Mozambique, northern Madagascar, Botswana, Namibia, South Africa and Zimbabwe.

“During the past week, moderate to locally heavy rainfall was observed over northern, central and eastern Southern Africa,” FEWS NET said in the report.

The agency noted that flooding has already been recorded in some parts of the region, including Cunene Province in southern Angola and Rundu in northern Namibia, as rainfall continued across several countries.

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Over the past 30 days, cumulative rainfall has been above average across southeastern Angola, northeastern Botswana, central South Africa, Lesotho, central and southern Zimbabwe and parts of Malawi and Mozambique, increasing the likelihood of flooding in low-lying and flood-prone areas.

FEWS NET warned that the situation could worsen in the coming days.

“(This week) , heavy rainfall is predicted over northern and eastern Zambia, including central and northern Angola, central and eastern Zambia, Malawi, northern and eastern Zimbabwe, Mozambique, northeastern South Africa, Eswatini and northern Madagascar,” the report said.

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According to the outlook, the forecast rainfall raises the risk of flooding in many local areas across the region, particularly where soils are already saturated following weeks of above-average rainfall.

The weather monitoring agency also noted that hot conditions are likely in western Angola and southwestern Madagascar, even as other areas brace for continued heavy rains.

FEWS NET provides climate and food security early warning information to support humanitarian planning and disaster preparedness across vulnerable regions.

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Parliament debates disputed chiefdoms across the country

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BY STAFF REPORTER 

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Parliament has raised concern over increasing disputes over traditional leadership, with lawmakers warning that contested chiefdoms are undermining governance and development in rural communities.

Moving a motion in the National Assembly, Hwange West MP, Vusumuzi Moyo said the growing number of chieftainship disputes posed a threat to peace and cultural heritage.

“I rise today to debate on a matter which I believe is a matter of national importance, the growing prevalence of disputed chiefdoms across Zimbabwe and the serious threat that these poses to peace, governance, development, and the preservation of our cultural heritage,” Moyo told Parliament. 

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He said many disputes date back to distortions created during the colonial period.

“Some of these disputes… emanate from colonial times… when the colonial masters moved in. When they moved in, we already had governing structures,” he said. 

Moyo also referenced communities in Hwange District, saying colonial relocations disrupted traditional governance systems.

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“I remember in the constituency that I come from, most of these people… had been resettled from far-off lands, fertile lands, and dumped in Hwange District,” he said. 

He warned that unresolved leadership disputes weaken governance at grassroots level.

“Madam Speaker, when a chiefdom becomes disputed, those constitutional functions grind to a halt. Customary courts lose legitimacy. Land allocations become contested. Development programmes stall,” he said. 

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Moyo urged Government to establish clearer succession procedures for traditional leaders.

“It is my sincere hope that… we could start the conversation of trying to restore our culture by providing the necessary legislation to make sure that we cure all this,” he said.  

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Rising Zambezi flows lift Kariba water levels amid improved rains

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BY WANDILE TSHUMA

Water levels at the Kariba Dam are gradually rising following improved rainfall across the Zambezi River Basin, bringing cautious optimism for water availability and power generation.

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In a hydrological update released Tuesday, the Zambezi River Authority said the Lake Kariba reservoir level had reached 477.74 metres above sea level as of 10 March 2026.

Usable live storage now stands at 15.57 percent, equivalent to about 10.08 billion cubic metres of usable water.

The Authority said the increase is being driven by improved rainfall across much of the Kariba catchment during the 2025/2026 rainy season, which has boosted river flows and inflows into the reservoir.

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“This reflects an improvement compared to the same date in 2025, when the reservoir stood at 476.93 metres above sea level with usable live storage of 9.87 percent,” the Authority said.

Zambezi flows rising at key monitoring points

River flows are also increasing at key monitoring stations along the Zambezi River.

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At the Chavuma Gauging Station, flows reached 3,058 cubic metres per second on 10 March 2026, significantly higher than 2,088 cubic metres per second recorded during the same period last year.

Flows have also risen sharply near Victoria Falls, a key tourism and hydrological monitoring point.

At the Victoria Falls (Nana’s Farm) Gauging Station, river flows increased to 1,645 cubic metres per second, compared to 871 cubic metres per second on the same date in 2025.

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The Authority said the upward trend reflects stronger rainfall upstream and around the Victoria Falls area, which is feeding the Zambezi system.

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The Zambezi River Authority said it will continue monitoring rainfall patterns and inflows across the basin to guide water utilisation at hydropower stations linked to the Kariba Dam.

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The reservoir is a critical source of electricity for both Zimbabwe and Zambia, which jointly own and manage the dam through the Authority.

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