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Zimbabwe’s forex black market crackdown shakes banks

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BY MEMORY MATARANYIKA

Zimbabwean bankers are fretting over compliance with government directives to root out “illegal foreign currency dealings, with the country’s biggest bank, CBZ, cautioning its employees against facilitating such deals as well as instructing them to report all suspicious accounts and transactions.

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This follows a meeting of the central bank and business leaders, including representatives for banks, on Monday.

Sources who attended Monday’s meeting said the governor blamed the banks for not reporting suspicious transactions.

Said a finance manager at a foreign-owned finance institution: “We are under pressure as an industry to do something.

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“The governor and other government officials are already exerting pressure on the industry to play a role in shielding the local currency and to protect the official foreign exchange market and that’s why banks have started to issue these cautions to employees.”

CBZ Bank group chief compliance officer Matthew Manyati and managing director Peter Zimunya said in a October 12circular to all departments that staff members were being “advised to desist from participating in illegal foreign currency transactions, either on behalf of clients or for their own personal” benefit.

“Disciplinary action shall be taken against any staff member, who breaches the contents of this instruction circular, hence staff members are encouraged to use the legally designated channels to access foreign currency,” further reads the circular.

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The Reserve Bank of Zimbabwe (RBZ) and the Financial Intelligence Unit had “cited great concern on the number of CBZ clients who are advertising parallel foreign currency transactions on different social media platforms”, highlighting that this in turn was “fuelling exchange rate distortions”.

CBZ has thus instructed its workers to “identify any persons advertising parallel foreign currency transactions using the CBZ name” on social media.

The RBZ – which has already blacklisted 77 individuals for money laundering – charges that some bank clients are openly advertising illegal parallel market forex rates on social media platforms quoting specific bank platforms.

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This, authorities in Harare argue, has resulted in price increases and a widening of the gap between official and unofficial forex rates.

The Zimbabwean dollar was on Wednesday trading around 1:175 against the US dollar on the parallel market compared to 1:90 on the official auction market, which has been sluggish.

In a communique released after the meeting on Monday, the central bank said the Zimbabwean bankers had committed to “enhancing reporting of suspicious transactions” as well as “promptly implementing regulatory directives on freezing of bank accounts for participants in illicit foreign currency transactions”.

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The FIU has separately directed local banks to institute monitoring measures aimed at rooting out bank accounts and debit cards that are being used for foreign currency dealings.

“Banks should implement a robust automated transaction monitoring mechanism to identify debit cards and the linked bank accounts that are being used frequently and in a pattern that raises suspicion.

“Banks must carry out further analysis to establish the source of funding into the accounts,” the FIU said in a notice to banks. – News24

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Lion found poached in Victoria Falls

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BY NOKUTHABA DLAMINI

A disturbing poaching incident has shaken the conservation community in Victoria Falls, with a lion found brutally killed and mutilated.

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According to a statement released by the Zimbabwe Parks and Wildlife Management Authority (ZimParks), a team from the Vic Falls Wildlife Trust was tracking a collared lion when they stumbled upon a gruesome scene.

The poached lion’s flesh had been removed, and its claws and head were missing. However, in a heartening turn of events, a second lion, an adult male, was found caught in a snare but still alive.

Thanks to the swift intervention of veterinary doctors, the second lion was successfully treated and rescued from the snare.

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ZimParks has condemned the incident and vowed to work closely with the Zimbabwe Republic Police (ZRP) to bring the perpetrators to justice.

“We are worried about the increasing cases of lion poaching, and we will continue to work with the Police and other conservation partners to curb this challenge,” said Tinashe Farawo, ZimParks Spokesperson.

The incident has raised concerns about the safety of wildlife in the area, with ZimParks rangers and anti-poaching units conducting snare-sweeping patrols to protect the animals.

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As the investigation continues, conservationists and wildlife enthusiasts are calling for increased efforts to combat poaching and protect Zimbabwe’s precious wildlife heritage.

 

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ZimParks sounds alarm over mining threat to Hwange National Park

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BY NOKUTHABA DLAMINI 

The Zimbabwe Parks and Wildlife Management Authority (ZimParks) has issued a stern warning against a proposed mining project in Hwange National Park, citing catastrophic consequences for the park’s ecosystem and wildlife.

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In a press statement released today, ZimParks urged the Ministry of Mines and Mining Development to cancel the application for exclusive prospecting of mining activities in the Sinamatella Black Rhino Intensive Protection Zone.

The zone is a critical habitat for the critically endangered black rhino, listed under the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES) Appendix 1.

“The proposed mining project poses a significant threat to the survival of our black rhino population,” said a ZimParks spokesperson Tinashe Farawo. “It will increase the risk of species extinction and negatively impact population recovery efforts.”

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ZimParks also expressed concerns over the potential environmental degradation, including land, air, and noise pollution, which would disrupt wildlife movement and visitor experiences.

“Hwange National Park is home to Africa’s second-largest elephant population, and mining activities may interfere with groundwater flow, threatening vital water sources,” Farawo added.

The park is also home to the Bumbusi ruins, a historical and cultural site of significance to the Nambian-speaking communities.

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Traditional leaders from the region visit the area annually to conduct cultural rituals and rain-making ceremonies.

ZimParks has vowed to continue advocating for the safeguarding of critical wildlife habitats and upholding its commitment to conservation for the benefit of all Zimbabweans and future generations.

The authority has called on the government to prioritize conservation efforts and reject the mining application, citing the long-term benefits of preserving the park’s ecosystem and wildlife.

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As the fate of Hwange National Park hangs in the balance, conservationists, tourists, and local communities wait with bated breath for the government’s decision.

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Zimbabwe fights a losing battle against illegal Chinese plastics

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Much of Zimbabwe’s plastic waste isn’t disposed of properly. It has clogged rivers, littered streets, and had been linked to deadly flash floods and animal deaths.

BY LINDA MUJURU

At Mbare marketplace, a major trading hub in Zimbabwe, plastic bags are everywhere. Vendors stack them at the ready for customers, who tote their purchases home and often discard the bags after a single use. Many of these plastic bags are either imported from China or sold by local Chinese companies, and fail to meet Zimbabwe’s standards for plastic packaging.

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“We know this type of plastic isn’t allowed, but we sell it anyway. It’s cheaper, and there is a huge demand for it in the market,” says Tichaona, a local plastic bag vendor who sources his bags from a Chinese company in Harare. He provided only his first name for fear of arrest.

 

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In some cases, plastic bag buyers don’t even know that the bags are thinner than is legal, says one employee at Colour Maximal, a Chinese-owned plastic manufacturing company in Harare, who asked Global Press Journal to protect his identity for fear of losing his job.

 

“We know what the quality should be, but we never produce it,” he says. “Customers are told these plastics meet the 30-micron requirement, but that’s simply not true.”

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Zimbabwean law bans the production and distribution of plastic packaging thinner than 30 microns (a unit of measurement to describe plastic thickness), except for bread packaging, which must measure at least 25 microns. However, the country faces an influx of inexpensive plastic imports from China, coupled with a rise in Chinese-owned manufacturing firms, which now dominate the plastic industry.

 

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Many of these importers and manufacturers exploit weak law enforcement to produce plastics that measure lower than the standard, exacerbating a pollution crisis that’s already critical.

 

“[They] don’t care about quality. Their products are cheaper. People can just walk in and buy in bulk,” says Donald Marumbwe, who has worked in the plastic manufacturing industry for over 30 years.

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Global Press Journal collected samples from Colour Maximal and independently tested them. All samples were thinner than the required 30 microns. Some bags measured were just 20 microns.

 

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Global Press Journal also measured bread bags from Mbare marketplace, which, according to the regulations, should range between 25 to 30 microns. Some of those bags measured as thin as 6 microns.

 

Thin plastic bags, often used just once, can take thousands of years to decompose, turning into harmful microplastics that threaten wildlife and enter the human food chain. Thicker plastic is likely to be reused and recycled, reducing environmental impact.

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But thin plastic is cheaper to make, says Tatenda Murwira, a manager at Colour Maximal. It’s the reason his employer manufactures this kind of plastic, despite the law. “We’re profit-oriented,” he says. “It’s all about saving materials and keeping prices competitive.”

 

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In the end, it’s Zimbabweans who suffer. A significant portion of plastic waste — approximately 18% of the country’s total waste — isn’t disposed of properly. It has clogged rivers, littered streets, and, worse, been linked to deadly flash floods and animal deaths due to ingestion. Since 2010, plastics, both locally produced and imported, have caused the deaths of about 5,000 animals.

 

Amkela Sidange, the environmental education and publicity manager at Zimbabwe’s Environmental Management Agency, says they conduct routine inspections to prevent the manufacturing and distribution of plastic that doesn’t meet requirements. Those caught violating the law face fines that could reach 500 United States dollars.

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But Murwira, the manager at Colour Maximal, says that while officials from the environment agency have visited the company, which has been operating for more than a decade, they’ve never inspected the factory. “They never check the quality of our products,” he says.

 

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Once the packaging gets into the market, it’s hard to trace back to the manufacturer. “[The companies] don’t put their names on the packages because they don’t want it traced back to them,” Marumbwe says.

 

None of the plastic bags Global Press Journal examined at Mbare marketplace had a manufacturer’s name on them.

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Although South Africa is the main supplier of materials used to produce most of the plastic packaging circulating in the country, these imports are on the decline while imports from China are on the rise. In 2012, Zimbabwe imported 10.9 million dollars’ worth of plastic raw materials from China. By 2023, that number had increased fivefold to 54.8 million dollars, according to data from Trade Economics.

 

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“We’re profit-oriented. It’s all about saving materials and keeping prices competitive.”

 

Tatenda Murwira, a manager at Colour Maximal

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China is also a major player in Zimbabwe’s manufacturing sector, largely thanks to former President Robert Mugabe’s push to strengthen ties with East Asian countries. Mugabe famously described China as “our second home, a part of us” in 2006. By 2015, China was Zimbabwe’s biggest foreign investor, and its hold over key sectors, including mining and manufacturing, has grown.

 

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The investment has promoted growth, but it’s also come with challenges, including environmental degradation.

 

Chinese-owned companies’ disregard for regulation is indicative of a larger problem, says Gift Mugano, a professor of economics at the Durban University of Technology, in South Africa.

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“They are in bed with the politicians. [The] Chinese work with people in high offices, so they’re kind of covered, and they don’t respect the environmental laws,” Mugano says.

 

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It’s a widespread problem in Africa, where dependency on such investors is common, he says. In Zimbabwe, the situation is even worse because the country is mired in debt, which makes it susceptible to influence from one of its primary investors.

 

“[It’s] a new wave of neo-colonialism,” Mugano adds.

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Zimbabwe has made several attempts to address its plastic problem, including a 20% tax on plastic bags, which went into effect in January. But companies routinely dodge that tax, just as they’ve avoided the plastic bag regulations, says the ColourMaximal employee who spoke on condition of anonymity.

 

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“At the end of 2024, Zimbabwe Revenue Authority representatives visited our offices, threatening to shut us down for nonpayment of taxes,” he says.

 

Murwira, the manager, says Colour Maximal is fully tax compliant.

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Global Press Journal visited a plastic-packaging production company formally registered as Liwei Wang but currently trading as Multiple Star. Upon inquiry, factory representatives said that their plastic bags measured only 20 microns, short of the standard.

 

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On display at the site was an expired 2024 tax clearance certificate.

 

Global Press is an award-winning international news publication with more than 40 independent newsrooms in Africa, Asia and Latin America.

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