HARARE, Zimbabwe — Out with the Zimbabwe dollar, in with the ZiG.

Zimbabwe on Tuesday started circulating a new currency to replace one that has been battered by depreciation and often outright rejection by the people. The ZiG was introduced electronically in early April, but people are now able to use banknotes and coins.

It’s the southern African country’s latest attempt to halt a long-running currency crisis underlining its persistent economic troubles. The government had previously floated various ideas to replace the Zimbabwe dollar, including introducing gold coins to stem inflation and even trying out a digital currency.

Since it was launched electronically on April 5, the ZiG — short for Zimbabwe Gold and backed by the country’s gold reserves — appears to be heading down the same path of mistrust, with some government departments refusing to accept it.

The ZiG is the sixth currency Zimbabwe has used since the spectacular 2009 collapse of the Zimbabwe dollar amid hyperinflation of 5 billion percent, one of the world’s worst currency crashes to date. That set off a chaotic series of events: first the U.S. dollar was allowed as legal tender, then banned, then unbanned.

A new “bond note” became legal tender, the Zimbabwe dollar was reintroduced before the gold coins and digital currency were tried.

However, nothing brought any currency stability and the U.S. dollar remains the most trusted for ordinary Zimbabweans.

As the shiny new ZiG banknotes hit the streets, the mistrust was evident.

Kudzanayi Mande, a vegetable trader at the crowded Mbare market in the capital of Harare, said she would rather forgo a sale than accept the ZiG. She was confused, the 56-year-old said.

“Already there is an official exchange rate and a depreciated black market rate, so I will wait a bit to see what its real value is,” she said. “The U.S. dollar is still a safer bet.”

The government has allowed some businesses, such as gas stations, to refuse to accept the ZiG in favor of U.S. dollars. Some departments, like the office that issues and renews passports, accept only U.S. dollars.

At the same time, other businesses are being ordered to only use the ZiG, and face punishment if they don’t.

“The government prints the money so it should be the first to accept the currency and everyone else will follow,” said Gift Mugano, an economics professor at South Africa’s Durban University of Technology.

“Otherwise it is behaving like someone who feeds on takeaways but wants others to eat the food they cook,” Mugano said. “It becomes suspicious.”

Many in Zimbabwe still remember when a 100 trillion Zimbabwe dollar banknote was printed in 2009 at the height of the hyperinflation to keep up with spiraling prices.

At one point, a loaf of bread cost more than 500 million Zimbabwe dollars. Prices would change from when customers walked into a grocery store to when they lined up to pay at the cash register. Restaurants stopped displaying prices on menus as they would go up over the course of a dinner. People lugged around bags stuffed with banknotes. Savings and pensions became worthless.

Through the ordeals, the greenback remained precious — and highly valued on the black market.

Across Zimbabwe, the U.S. dollar is still widely used, from paying rent and school fees to buying groceries. Many take their local currency earnings to the black market to exchange for dollars since banks don’t give out U.S. dollars. Some people stash their U.S. dollars at home.

The government of President Emmerson Mnangagwa has taken a hard-line approach — dozens of black market currency dealers were arrested and have been in pretrial detention for weeks, accused of trying to undermine the new currency. After the ZiG was introduced electronically, bank accounts of some businesses were frozen, accused by the government of rejecting the new currency.

Authorities say they have faith in the ZiG because it’s backed by the country’s gold reserves. Mnangagwa said in a speech on Monday it was a matter of “our national identity and dignity” to trust the ZiG.

Though some hopeful Zimbabweans headed for the banks Tuesday to get their hands on the new currency, many remained skeptical after two decades of turmoil.

An online news outlet published a political cartoon showing a policeman struggling to hold up a collapsing house with the word ZiG on it.

The caption: “World’s first police backed currency.”

Source: AP

Ugandan Speaker Anita Annet Among and two other former ministers who worked under President Yoweri Museveni are not in the good books of the UK government whose Deputy Foreign Secretary, Andrew Mitchell, has announced sanctions on them.

The others are Mary Goretti Kitutu, who was the Minister for Karamoja Affairs between 2021 and 2024 and Agnes Nandutu, who was the State Minister for Karamoja Affairs between 2021 and 2024.

Among was one of the most powerful and influential women in Uganda even before she became Speaker of the country’s parliament.

UK says it is imposing sanctions on the politicians following corruption charges for stealing from the poorest communities in Uganda.

The UK is applying the Global Anti-Corruption Sanctions regime on individuals involved in corruption in Uganda for the first time.

The latest sanctions are part of what the UK says is its continued effort to crack down on serious corruption around the world.
The three individuals who face corruption charges at Uganda’s Anti-Corruption Court, will be subject to travel bans and asset freezes.

According to the charges Mary Goretti Kitutu and Agnes Nandutu stole thousands of iron sheets used for roofing and infrastructure from a Ugandan government-funded project aimed at housing some of the most vulnerable communities in the region, providing them to prominent politicians and their families instead.

It is claimed that Among who has been Speaker since 2022 benefited from the proceeds.

Over 60% of people in Karamoja live in poverty and many suffer from the devastating impacts of drought and insecurity.

Deputy Foreign Secretary Mitchell, said the trio ”taking aid from those who need it most, and keeping the proceeds, is corruption at its worst and has no place in society”.

He said the Ugandan courts were on a right cause to rein in corruption by cracking down on politicians who seek to line their own pockets at the expense of people they are supposed to help out of poverty.

“Today the UK is sending a clear message to those who think benefiting at the expense of others is acceptable. Corruption has consequences and you will be held responsible” he said.

The UK’s Global Anti-Corruption sanctions regime, has targeted individuals involved in serious corruption cases across the world, including offenders in Bulgaria, Lebanon, Moldova, Russia, South Africa, South Sudan, and Venezuela.

Since its introduction in April 2021, the UK has introduced sanctions on 42 individuals and entities under this regime globally to combat corruption across the world.

Under the punitive measures an asset freeze prevents any UK citizen, or any business in the UK, from dealing with any funds or economic resources which are owned, held or controlled by the designated person and which are held in the UK. It will also prevent funds or economic resources being provided to or for the benefit of the designated person or entity.

A travel ban means that the designated person is an excluded person under section 8B of the Immigration Act 1971, and must be refused leave to enter or to remain in the United Kingdom (any leave given to a person who is an excluded person is invalid).

WN/as/APA

CIVIL servants are wallowing in poverty and financial despair, a result of unfulfilled promises by President Emmerson Mnangagwa’s government, the NewsDay can report.

The government employees are struggling to survive on meagre salaries that have been ravaged by inflation.

Their representatives painted a gloomy picture as Zimbabweans prepare to join the world in commemorating the Workers Day tomorrow. They lamented government’s unfulfilled promises including provision of solar systems and 500 000 housing units as part of their non-monetary benefits.

The government also pledged to pay the employees a living wage among other commitments.

This has resulted in a mass exodus of skilled workers, who opt for menial foreign jobs owing to poor remuneration back home.

Reports have indicated that the civil service lost more than 5 000 employees to the United Kingdom while other countries such as South Africa, Australia and New Zealand continue to lure Zimbabwean workers.

Government chief negotiator in the wage negotiations Nobert Machinjike yesterday said the employer would continue engaging workers in a bid to improve both their wages and non-monetary benefits.

“We have all committed to continuous engagement with the workers and I am happy that we have come up with a hardened remuneration framework for the earnings.

“It is also important that we agree with the workers that our remuneration framework is also competitive in the region but we are working together to identify key issues that will see the government employees getting satisfactory earnings,” he said.

However, Zimbabwe Confederation of Public Sector Trade Unions chairperson David Dzatsunga yesterday told NewsDay that there is concern over government’s unfulfilled promises.

“We have seen that there is no interest by the government to address our issues. We have heard that the government wants to install solar panels for civil servants at their homes in 2022 but that never happened.

“There is also an issue of hierarchy, those civil servants at a lower rank have never benefited at all. Then there is this issue of housing where we think the government has the capacity to provide land or a facility that can allow civil servants to have their own houses. But this also has not happened,” Dzatsunga said.

He said government should honour its commitments and prioritise the welfare of civil servants.

Medical and Dental Private Practitioners Association of Zimbabwe president Johannes Marisa said the general working conditions of the country’s workforce were deplorable.

“There is poor infrastructure and we implore the government to improve the conditions of health workers. Health workers do not have proper accommodation, decent means of transport; they need vehicles,” Marisa said.

Health workers also bemoaned government’s decision to block collective action especially by health workers.

“We were supposed to have gone on strike early this month because of our poor wages but we were later told by the Zimbabwe Nurses Association that the government has blocked the strike and we feel let down given the nature of our job. We think we should be getting fair salaries,” they said.

Amalgamated Rural Teachers Union of Zimbabwe President Obert Masaraure accused the Mnangagwa administration of allegedly employing military tactics citing the deployment of command tactics in handling labour disputes.

“The government of Zimbabwe under Emmerson Mnangagwa is worse than Rhodesia and Mugabe combined. The militarised government is deploying command tactics in handling labour disputes. The Constitution in Section 65 provides for the right to a fair wage and right to engage in job action. These rights can’t be withdrawn by some individuals who just have a five-year mandate,” he said.

Public Service International sub-regional secretary for Southern Africa Tichaona Fambisa called on the government to prioritise investment in the public service sector.

“Government of Zimbabwe should make sure that it invests more in public service so that public sector workers and health workers can earn decent salaries and fail to find reasons to migrate,” Fambisa said.

Calls for industrial action continue to grow among civil servants, but the government has been uncompromising and enforcing a “no work, no pay” policy for civil servants who participate in illegal demonstrations or stay-aways.

Source: News Day