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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

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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Parliament flags dozens of council by-laws as unconstitutional

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BY NOKUTHABA DLAMINI

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Subheading:

Legal committee says several statutory instruments exceed legal powers, impose excessive fines and create room for arbitrary charges.

Story:

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The Parliament of Zimbabwe has raised alarm over dozens of local authority by-laws, warning that many of them violate the Constitution and the laws under which they were created.

In an adverse report, the Parliamentary Legal Committee said several statutory instruments gazetted in October 2025 are ultra vires, meaning they exceed the legal powers granted under the Urban Councils Act and the Rural District Councils Act. 

The by-laws affect a number of local authorities including Masvingo, Plumtree, Shurugwi, Chimanimani, Chivi and Insiza.

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According to the committee, some of the regulations were improperly enacted because the minister responsible for local government made the by-laws directly instead of councils, which are legally mandated to draft them before submitting them for ministerial approval. 

“The by-law making authority is the council, not the minister,” the report states, adding that the process set out in the law was not followed. 

The committee also flagged excessive penalties in some statutory instruments. Under existing legislation, fines imposed through council by-laws should not exceed Level Five on the standard scale of fines — about US$200. However, some by-laws impose penalties ranging between US$500 and US$5,000, which lawmakers said violates the enabling legislation. 

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Another major concern is that several by-laws require residents to pay permit or licence fees without specifying the amounts, creating legal uncertainty.

Lawmakers warned that leaving such fees undefined could allow authorities to impose arbitrary charges, potentially opening the door to corruption and abuse of power. 

The committee also highlighted constitutional concerns in some provisions, including those that allow councils to seize property or evict residents without court oversight, which may violate constitutional protections against arbitrary deprivation of property and unlawful eviction. 

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In its conclusion, the committee said the statutory instruments are inconsistent with both the Constitution and the Acts of Parliament that empower local authorities, recommending that the laws be reviewed and amended to comply with constitutional and legal requirements. 

 

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Government launches nationwide dog vaccination drive amid surge in rabies cases

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BY WANDILE TSHUMA 

The Government has launched an urgent nationwide dog vaccination campaign following a surge in rabies cases across Zimbabwe.

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In a statement posted over the weekend, the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development said the country is experiencing a significant rise in rabies infections, largely linked to domestic dogs and wild jackals.

Permanent Secretary Prof. Obert Jiri confirmed that 650,000 doses of rabies vaccine have been secured from Botswana — exceeding the country’s usual annual requirement — to contain the escalating threat.

The Ministry said the campaign will be rolled out in the coming weeks across all provinces, targeting hotspots near national parks and conservancies, as well as urban areas that have recorded increasing cases.

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Prof. Jiri stressed the urgency of seeking immediate medical attention following dog bites, warning that rabies is fatal in humans once symptoms appear.

He appealed to dog owners to ensure their pets are vaccinated, saying collective action remains the primary defence against the deadly disease and is critical in preventing further fatalities.

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