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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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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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