By Beverly Bizeki

Three alleged forex dealers in Masvingo appeared separately before Masvingo Magistrate Elizabeth Hanzie on April 30, 2024, for contravening the exchange control regulations SI 109/1996 under the operation ‘No to illegal foreign currency dealers’ and were remanded in custody to May 14 for continuation of trial.
The three, Moses Garauzive (37), Tendai Mugabe (44), and Wilson Gumepi (48) were arrested separately on April 29 for unlawfully and dealing intentionally in foreign currency without the approval of the central bank, the Reserve Bank of Zimbabwe.
Garauzive was arrested at Belmont Spar Supermarket after being approached by police details while calling out “tinochinja mari nerate yakanaka (we exchange money at a good rate)”. He was found with US$163 and four bank cards.
Mugabe was arrested at Mucheke Rank on the same day under the same circumstances and was found in possession of US$51, R410, and ZWL500 for sale. Gumepi was also arrested at Mucheke Rank while he was displaying US$30 for sale.
Efforts to get statistics of the blitz in Masvingo were futile as the Provincial Police Spokesperson referred questions to the National Police Spokesperson Assistant Commissioner Paul Nyathi who said there were no specific statistics for the provinces the operation was centralized.
“This is a centralized operation being done by the police and the central bank. There is no categorization of provinces,” said Nyathi.
The crackdown on illegal forex dealers started recently after the introduction of the new ZiG currency and a number of these alleged forex dealers have been arrested across the country.
Analysts have however said the clampdown on the illicit forex was not a lasting solution for the ongoing economic crisis. Progressive Teacher’s Union of Zimbabwe (PTUZ) president Dr Takavafira Zhou said the government Shouldwork on building trust among citizens arguing that even the government had no confidence in the new currency.
“The arrest of forex dealers is unfair and ill-conceived and focuses on the symptoms rather than addressing the real problem that has led to their rise. What we need is realist economic and financial prudence based on frugality and thrift rather than political expediency.
“A currency’s acceptability and durability is based on trust and production. Currently, there is no trust in the ZiG currency and no production as Zimbabwe has become a large supermarket for products from outside. A currency cannot be enforced but must earn the trust from the citizens which ZiG has not.
“The streets may be clean but it does not mean the change money members are not there. They have temporarily abandoned the streets and are operating from their backyards. Soon even the police will give up their halfhearted attempts to enforce ZiG because they are also victims of the same currency. ZiG is ill-conceived and the earlier we go back to the basics of using the USD to rekit our industries so that we produce the better. A currency that has been rejected by the very government (in terms of taxes, buying fuel, duty, etc.) that wants citizens to accept it, has no traction. Mai vepi vanobika sadza ravanoti rinonaka ravasingadye,” said Dr Zhou.
The ZiG was introduced on April 8, trading at 13.56 to USD but lost its value on the black market in less than two weeks as the illicit forex dealers were now trading at 20.
Vice President Constantino Chiwenga recently issued a stern warning to illegal forex dealers and said strict measures will be put in place to curb exchange rate manipulation and over 100 people have been arrested so far.

By Yeukai Munetsi

Gweru Mayor Martin Chivhoko, is facing backlash after he made claims that he was going to make sure the city’s water woes were a thing of the past, as residents are calling him clueless and a pathetic liar.
The disgruntlement follows Chivhoko’s appearance on different media platforms claiming the successful installation of a transformer at Gwenhoro, which was expected to significantly increase the city’s pumping capacity.
Gweru Residence and Ratepayers Association (GRRA) Director Cornelia Seliphiwe raised concern about the mayor’s lack of technical understanding which he said led to disparities between official claims and reality on the ground.
“It is very unfortunate that a whole Mayor goes for interviews and talks about things he does not understand. It shows how dangerous he is to the community of Gweru because some of these things are too technical. There is no way a newly elected mayor would understand these things. We are still in trouble as we do not have water and residents are paying for a service they have not consumed,” said Seliphiwe.
Seliphiwe went on to say the mayor had appeared on different media platforms claiming the installation and commissioning of a transformer to ease the water issues which was not true and urged him to desist from relaying information that is not true.
“The mayor commented on certain news platforms that the transformer had successfully been installed and commissioned. He lied and had no idea what he was talking about.
“It is unfortunate that as Gweru residents we were lied to and I think the mayor should stop this behavior of going to the media with information that is not authentic and verified because he is not technical. I also think he should apologize,” he said.
Residents expressed disgruntlement in various WhatsApp platforms and said when Chivhoko was elected Mayor he promised to end water woes but nothing has changed so far.
A resident from Ward 15 who chose to remain anonymous raised concern over the unfair water rationing schedule claiming that several areas in Gweru continue to experience prolonged water shortages.
“There are some areas in my ward that go to over a month without water. We have an uneven distribution of water on the days allocated for us to get water such that when others in my community have water, our houses just across the road will have dry taps,” said the resident.
She further said the unfair distribution led to many residents paying for water that they had not used.
“Despite not getting the water, we are still paying for the water we have not used. My bill for this month is pegged at US$25,” she said.
Women’s Coalition of Zimbabwe Chairperson (WCOZ) Gweru Chapter chairperson, Merjury Makunere, pointed out the detrimental effects of water shortages on women, including an increase in gender-based violence and unwanted pregnancies.
“These erratic water shortages and failure of the local authority to do proper assessment on the effectiveness of water distribution have led to women being victims of domestic violence. Women are being hit by their husbands for spending long hours on water queues at the expense of their domestic chores.
“There have also been cases of a sharp rise in unwanted pregnancies as young women are being taken advantage of by men at water queues to get favors to carry water and skip the long queues,” she said.
She urged the mayor to walk the talk and fulfill promises and implored Gweru City Council to do an assessment in the communities and set aside days for areas that are not receiving any water to be compensated.
Gweru City Council’s inability to fulfill the pledge of ensuring adequate water supply has led to widespread dissatisfaction among the disability community, prompting concerns about accountability and effective governance within the city.
Quadriplegics and Paraplegics Association of Zimbabwe, an organization for people on wheelchairs due to accidents, Program Coordinator Audry Rusike reiterated that the situation was worse for them.
“Where I reside in ward 15, Mkoba 16, houses opposite my house have water whilst houses in my line do not have any. I am surviving on paying people to carry water for me since I use a wheelchair and cannot do the task myself. The bills are always high and yet usually when we get the water it is at odd hours, at 11pm and by 0430 hours it will be disconnected. As people with spinal disabilities, medically we are required to sleep for specific hours but we are failing to do so as it takes long to fill our storage containers further worsening our situation,” said Rusike.
Youths from Ward 9 in parts of Mkoba 11 have also raised concern over the same issue saying it was affecting their informal businesses.
“As youths we survive on an informal economy selling different items. We have to wake up at 0400hours to go fetch water, in unprotected sources. Due to the long queues, we usually come back at around 0900hours and this has a negative impact on our businesses. We are always tired and failing to cope up with other responsibilities,” said Victor Mupoperi.
In response to the escalating discontent on GRAA WhatsApp platform, Chivhoko attributed the water shortages to power outages and urged residents to seek divine intervention or take matters into their own hands by engaging with the power utility, ZESA.
“Good morning our dear residents as your council we are doing our best to ensure that you get water every day. Unfortunately, some of these challenges are beyond our control; load shedding, erratic power outages, etc. Dayi mataura nyaya yekuenda kuZesa monokumbira dedicated line for Gwenhoro zvaitibatsira tose (if you could approach ZESA and ask for a dedicated line to Gwenhoro it would be beneficial to us all),” wrote Chivhoko.

By Beverly Bizeki

Retail outlets popularly known as ‘China shops’ that often supply cheap goods varying from kitchenware, clothing, electrical gadgets, and detergents among other things are only accepting US$ cash payments, with no other multicurrency payment method being accepted.
Analysts have attributed the proliferation of illegal forex dealers to these shops, as the general populace patronizes them very often because of the availability of a variety of modestly priced goods.
A survey conducted by TellZim News in Masvingo city revealed that out of nine of these shops in town, none of them accepts swipe or Ecocash transfers be it USD or local currency (ZiG) with some of them even refusing payments in the South African Rand or local hard cash payments.
The practice is against Statutory Instrument (S.I) 85 of 2020 states that payment for goods may be done electronically through a foreign currency account or in cash or through any electric payment platform but the retailers have been on record for taking cash payments only.
Economic Analyst Collen Jonas said the issue had long been in existence and blamed the reluctance of monetary authorities and law enforcement agencies
“The issue is nothing new and is widespread with Chinese, Indians, and other nationals who have always refused to accept local currency as a method of payment. The issue is on law enforcement agencies applying the law selectively. Other giant retailers such as OK, and PnP are forced to accept local currency payments for their goods but those small traders always get away with it. It really brings into question the role that the police are playing in enforcing our policies and regulations and our laws as well as the role that the Financial Intelligence Unit (FIU) plays in managing the financial services and retail sector on issues related to our money.
“There is a lot that has to be done by our monetary authorities as well as the police working hand in hand to ensure that our local currency, the ZiG in this place is fully embraced as a means to transact,” said Jonas.
Jonas said there was need for policy makers to put effort in building confidence of local currency
“Economic agencies need to have confidence in our currency, policy makers so if our monetary authorities are inconsistent in policy implementation if they are deceptive and are not able to build confidence we will end up having such situations where local currencies are not being accepted for payment of goods and services.
“Confidence cannot be built by making a policy pronouncement or overnight but is something that is built over a long period of time and is also built through consistency and honesty in as far as policy formulation and implementation is concerned,” said Jonas.
Another analyst who preferred to be anonymous said it was illegal for shops to refuse other forms of payment since the country’s monetary policy stipulates that the country is in a multi-currency system and it should be up to the buyer to choose the payment method he or she requires amongst the legal ones.
“Zimbabwe has a multi-currency system which is in place up to 2030, so if other shops refuse other forms of payment and accepts one it becomes problematic. It should be up to the buyer to decide which currency to use not the seller,” said the analyst.
The analyst went on to say if there is evidence then the ordinary citizens should take up the matter with relevant authorities who may not be aware of the practice and further said there was need for investigations to establish whether the shops were remitting taxes in US$.
“People should take the matter to the relevant authorities because they may not be aware of the practice. Investigations should be done to establish if these shops are remitting in US$ and where they were taking all the US$ cash sums they were getting,” said the analyst.
Masvingo Urban ward 10 Councillor Sengerayi Manyanga said the shops should accept all forms of payment legal in the country if they are operating in Zimbabwe saying people are paid in different currencies so they should all get equal opportunities to buy in these shops.
“These shops should accept all payment methods including the recently introduced ZiG, people are paid in different currencies and forms at workplaces so everyone should be allowed to use the payment method he or she wants depending on how they get the money,” said Manyanga.
Human rights activist Thomas Mbetu weighed in and said Zimbabwe currently operates under a multicurrency regime, allowing for the use of various currencies in its financial system. Therefore, it was advisable for these retailers not to insist on immediate payment in USD when conducting transactions in Zimbabwe.
“By embracing a multicurrency system, Zimbabwe has recognized the importance of accommodating different currencies to facilitate economic transactions. This approach has been implemented to alleviate the challenges associated with the country’s own currency, which has experienced significant instability in the past.
“Given this context, it would be prudent for these retailers to be cognizant of the prevailing financial landscape in Zimbabwe. While the USD is widely accepted, it is not the sole currency in use, and other currencies are also considered legal tender. Consequently, it is recommended that the retailers be open to accepting alternative forms of payment, such as the local currency or other internationally recognized currencies.
“Adapting to the multicurrency regime in Zimbabwe can help foster smoother business transactions and promote economic cooperation between international and Zimbabwean markets. By acknowledging and respecting the financial policies in place, the retailers can contribute to a mutually beneficial environment that supports trade and economic growth,” said Mbetu.
Announcing the Monetary Policy Statement (MPS) recently, RBZ Governor John Mushayavanhu said the multi-currency system is to stay up until 2030 as per the law and ZiG is circulate alongside other currencies.