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Rampant indiscipline in the marketplace is back and there is urgent need for Government to act before workers’ salaries are eroded by unscrupulous businesses using the black market exchange rates for Zimbabwe’s new currency (ZiG).  

After the introduction of ZiG which is backed by gold and other precious minerals, some unscrupulous businesses are now using the black market exchange rate of  22 ZiG for US$1 instead of the official rate of US$1 to 13,4 ZiG. 

Government came up with Statutory Instrument 81A of 2024 which compels businesses to use the official exchange rate when pricing products. Businesses that are found using their own exchange rates are fined ZiG 200 000 or equivalent in forex but it seems this is not deterrent enough as many businesses continue to use  unofficial exchange rates thereby fleecing consumers. 

The issue of businesses flouting exchange rates regulations came under Cabinet scrutiny this week as Government observed that many businesses were profiteering by using the black market exchange rates. Government has since warned that it will soon impose stiff penalties on businesses found engaging in unfair practices. In a post-Cabinet briefing on Tuesday, Information, Publicity and Broadcasting Services Minister Dr Jenfan Muswere said Government was reviewing fines for businesses engaging in unfair practices such as profiteering, smuggling and manipulating the ZiG currency. 

“Penalties are being enforced against all perpetrators of unjust price hikes, those that manipulate the ZiG currency, engage in smuggling and all farms of unfair trade practices,” said Dr Muswere. 

The Reserve Bank of Zimbabwe (RBZ) has said it has deployed officials that are working with police to ensure businesses flouting regulations are brought to book. Rampant indiscipline in the market place has in the past been the major stumbling block to Government efforts to stabilise the economy hence the need to urgently act to restore order. 

Reserve Bank of Zimbabwe (RBZ)

President Mnangagwa has on many fora urged Zimbabweans to embrace and defend the new currency saying sustainable economic development can only be achieved through the use of local currency which can stimulate economic growth and guarantee stability. Ethical conduct of businesses is crucial as it helps to instil confidence in the new currency hence the need to whip into line those businesses that want to profiteer by pegging their prices using the black market exchange rates. 

Government has announced that the country will continue with the multi- currency system until 2030 and it is hoped that during the period, an enabling economic environment to phase out the multi-currency system will be created.  

The new regulations that compel businesses to use the official exchange rate will stabilise prices and protect consumers from unscrupulous businesses that in the past used to adjust prices daily based on the black market exchange rates.  

Some businesses even had the audacity of selling some products exclusively in forex and it is our hope that such conduct will be nipped in the bud this time around. 

We want to once again implore businesses to embrace the new currency and uphold business ethics in their conduct as we grow our economy and build the Zimbabwe we all want.