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Zimbabwe retailers warn of shutdowns due to exchange rate distortions

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BY WANDILE TSHUMA

Companies like TM Pick n Pay, OK, Halsteads, Electrosales, Edgars, and Metro Peach are warning that they may be forced to shut down due to exchange rate distortions and strict enforcement measures by the central bank.

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The retailers are being forced to use the official exchange rate, which is US$1 to ZiG14.8, but manufacturers are using parallel market rates of up to ZiG31 in some cases.

The Retailers Association of Zimbabwe said, “Suppliers of goods and services into the formal retail sector are now maintaining two tier price lists for local currency and another for foreign currency – whose implied rates are way higher than the obtaining official exchange rate… Our suppliers have expressed concern that they are faced with an acute foreign currency shortage and excessive volatility of ZiG exchange rates on the parallel/alternative market which has now become the basis of their pricing framework.”

This has caused retailers “massive losses,” and they’re trying to lessen the impact by making steep USD price increases. However, this leads to real USD inflation creep and other economic and social problems.

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The retailers are proposing to let the ZiG float freely to allow a “market determined exchange rate” and implement a pricing model that reflects real-time market exchange rate fluctuations.

They also want to offer discounts for customers buying in forex to attract payments in foreign currency.

The situation is clearly untenable, and the retailers are calling for policy measures to protect the formal retail sector.

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The gold-backed ZiG, which was introduced in April, has lost almost 80 percent of its value on the black market, and the central bank has injected US$64 million into the foreign exchange market to address dollar demand.

The retailers are hoping for a solution soon to avoid company closures.

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    September 24, 2024 at 10:32 am

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National

Zimbabwe export surge, diaspora inflows mask funding gaps in foreign affairs sector

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BY STAFF REPORTER 

Zimbabwe is seeing strong gains in export earnings and diaspora remittances, but lawmakers warn chronic underfunding is undermining the country’s diplomatic and economic ambitions.

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Parliament heard that remittances reached about $1.8 billion by the third quarter of 2025, while exports rose sharply, helping cut the trade deficit. Lawmakers said the diaspora remains “a vital source of foreign exchange, directly contributing to the enhancement of the nation’s foreign reserves and overall economic stability.”  

However, MPs said financial constraints are weakening the institutions meant to sustain that growth. The Zimbabwe Foreign Services Institute received only a fraction of its budget, limiting recruitment and training.

“The staffing shortfall has inevitably affected operational efficiency and the institute’s ability to discharge its core mandate,” the committee report noted.  

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Lawmakers warned that without consistent funding, gains in exports and diaspora engagement could stall, particularly as Zimbabwe pushes toward an export-led economy.

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Government pushes vaccines drive as MPs warn of rural access gaps, misinformation

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BY NOKUTHABA DLAMINI 

Zimbabwean lawmakers have called for urgent action to close immunisation gaps, warning that rural communities remain vulnerable due to weak access and persistent misinformation.

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Speaking during Africa Vaccination Week, MPs said vaccines remain “among the most effective, equitable and transformative public health interventions,” but coverage remains uneven.  

“Persistent gaps endure, particularly in rural and underserved areas where barriers of access, awareness and trust continue to impede full immunisation coverage,” one legislator told Parliament.  

Lawmakers urged stronger investment in cold-chain systems and public engagement campaigns, stressing that immunisation is not just a health issue but “a strategic development imperative” tied to productivity and national growth.  

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EcoCash bill splitting signals rise of social commerce in Zimbabwe

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BY STAFF REPORTER

EcoCash’s latest bill-splitting feature on its Super App is not just a product upgrade, it is part of a broader shift towards “social commerce,” where financial transactions are embedded directly into everyday conversations.

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Traditionally, sending money has been a deliberate, separate action: open the app, enter details, confirm payment. But with EcoCash’s integrated chat environment, that process is being redefined. Payments now happen in the same space where decisions are made — within conversations among friends, families and colleagues.

This development, which is being driven by Sasai Fintech, a subsidiary of Cassava Technologies, result is a more natural flow between communication and commerce.

This model, often referred to as chat-first payments, is gaining traction globally. Platforms such as Venmo in the United States and Revolut in Europe have popularised the idea of embedding payments into social interactions, allowing users to split bills, request funds and settle expenses within a messaging context.

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EcoCash’s move signals that Zimbabwe is aligning with — and in some ways accelerating — this global trend.

Unlike many mature markets where card-based payments dominated before social features were layered on, Zimbabwe’s mobile-first ecosystem provides a different foundation. Mobile money is already deeply embedded in daily life, making it easier to integrate financial services into conversational platforms without requiring a behavioural overhaul.

By placing bill-splitting within its chat interface, EcoCash is effectively turning conversations into transaction points. A group discussing dinner plans can now split the bill instantly. Colleagues organising transport can settle contributions in real time. Families coordinating school fees or groceries can move from agreement to payment without leaving the chat thread.

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This convergence of messaging and money is at the heart of social commerce.

From a strategic standpoint, the implications are significant. Each conversation has the potential to generate multiple transactions, increasing activity on the platform while strengthening user engagement. Payments become less of a task and more of a seamless extension of communication.

Industry analysts note that this model tends to drive higher transaction frequency and user retention, as financial interactions become habitual rather than occasional. For EcoCash, the bill-splitting feature is a practical entry point into this space, simple enough to encourage adoption, yet powerful enough to shift behaviour.

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