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Zimbabwe’s currency crackdown accelerates dollarisation

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 BY RAY NDLOVU

A crackdown by authorities in Zimbabwe to support the local currency and fight inflation has increased the use of United States dollars in local transactions, according to the country’s oldest brokerage.

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“Ironically, the authorities’ clampdown on Zimbabwe dollar payments created such a squeeze that it has had the unintended consequence of driving dollarisation at a faster pace,” Imara Asset Management CEO John Legat said in the Harare-based company’s latest quarterly investment notes to clients. 

Banks are now offering US dollar loans and listed companies carry out more transactions in the greenback as they reel from a shortage of Zimbabwe dollars. “Even government is increasingly using US dollars for its own payments,” he said.

Since May, authorities have adopted a series of measures, including raising the benchmark interest rate to 200 percent, introducing gold coins, imposing taxes on capital markets and halting payments to government contractors and suppliers to try to reduce money supply.

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Those actions dried up excess liquidity and succeeded in bringing the official local currency rate in line with the parallel rate.

The government has struggled to successfully reintroduce its currency into the economy after abandoning its unit for more than a decade because of hyperinflation in the late 2010s. 

Zimbabwe dollar transactions have nearly halved in volume and value terms since the end of last year on banking and mobile-banking platforms, according to data from the central bank. 

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The value processed by the National Payments System was $1.9bn from 36-million transactions in September. That compares with a monthly average of $4.2bn last year from about 120-million monthly transactions. 

An increase in the use of US dollars does, however, mean companies have sufficient foreign exchange to import capital equipment without using the central bank auction, alleviating an obstacle to trade that other countries have faced because of a strong US currency.-Bloomberg

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In the community

Domestic violence takes a deadly turn: Hwange woman’s violent outburst lands her in jail

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BY STAFF REPORTER

A 19-year-old woman from Makwika Village has been sentenced by the Hwange Magistrate’s Court for domestic violence and assault after a violent incident occurred on June 2, 2025.

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The court heard that the woman assaulted her husband after he confronted her over messages on her phone. She slapped him, grabbed his private parts, dragged him into the kitchen, and poured boiling water on his lower body, causing serious injuries.

A concerned neighbor who attempted to intervene was also burnt with boiling water on her chest and hospitalized.

The woman was sentenced to 12 months imprisonment for domestic violence and 24 months imprisonment for assault. However, 12 months of the assault sentence were suspended for 5 years on condition of good behavior, and the remaining 24 months were suspended on condition of performing 630 hours of community service.

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The National Prosecuting Authority of Zimbabwe (NPAZ) has condemned the violent act, emphasizing that violence, whether in the home or community, is unacceptable.

“The law applies equally to all, and offenders will be held accountable,” said the NPAZ. “We encourage citizens to resolve disputes peacefully and report abuse immediately.”

 

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In the community

Teenager sentenced to 18 months for knife attack on minor

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BY WANDILE TSHUMA

The Bulawayo Regional Court recently sentenced a 19-year-old male from Nkayi’s Maphosa Village to 18 months imprisonment for attempted murder after a violent knife attack on a 15-year-old boy at Gwamayaya Business Centre.

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Allegations are that on April 18, at approximately 23:00 hours, the offender entered a shop at the business centre, causing a commotion. When customers attempted to calm him down, he became aggressive and charged at the victim, stabbing him in the left side of the stomach with a knife.

The victim was rushed to the hospital for medical attention, while the offender was arrested and charged with attempted murder.

In court, the offender was convicted and sentenced to 18 months imprisonment. However, six months of the sentence were suspended on condition of good behaviour, while the remaining 12 months were suspended on condition that he performs 410 hours of community service.

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The National Prosecuting Authority of Zimbabwe (NPAZ) has condemned the violent act, urging young people to resolve conflicts peacefully and encouraging communities to play a role in early intervention.

“Violence is never the answer. Every life matters – walk away, don’t escalate,” said the NPAZ in a statement.

 

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Fastjet launches Bulawayo to Victoria Falls flights

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BY NOKUTHABA DLAMINI

Fastjet Zimbabwe is set to expand its domestic route network with the introduction of flights from Bulawayo to Victoria Falls, starting August 8.

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The new route will operate four times a week, on Mondays, Wednesdays, Fridays, and Sundays.

According to Nunurai Ndawana, spokesperson for Fastjet Zimbabwe, “The new Bulawayo to Victoria Falls flight strengthens our presence in Bulawayo and underscores our commitment to the development of tourism region.” Ndawana added, “Our four times a week flights will offer more travel opportunities and support both leisure and corporate travel between the two cities, reaffirming our position as a key airline partner in connecting the Matabeleland region.”

Vivian Ruwuya, Fastjet Zimbabwe’s Chief Commercial Officer, noted that “This has been a long time coming. We have been monitoring the development and traffic trends between the manufacturing city of Bulawayo and our tourism hub of Victoria Falls. The introduction of a scheduled service is a result of widespread consultative engagements and collaboration with key players in the industry.”

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Fastjet Zimbabwe will deploy its Embraer fleet on the new route, offering customers a comfortable flight experience. The flight schedule is as follows:

– BUQ-VFA Flight FN8111: Monday, Wednesday, Friday, Sunday, departing Bulawayo at 13:25 and arriving in Victoria Falls at 14:20.
– VFA-BUQ Flight FN8112: Monday, Wednesday, Friday, Sunday, departing Victoria Falls at 14:50 and arriving in Bulawayo at 15:45.

 

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