latest news

Zimdollar remains legal tender until month-end — RBZ – The Herald

Nelson Gahadza-Senior Business Reporter

The Zimbabwe dollar remains legal tender for all domestic transactions until April 30, when the Zimbabwe Gold (ZiG) notes and coins will come into circulation, the Reserve Bank of Zimbabwe (RBZ) has said.

The central bank also said the recent introduction of the new currency had rendered the 10 percent trading margin by businesses economically irrelevant.

Following the announcement of the new currency last Friday, some traders, transporters and members of the public, stopped accepting the Zimbabwe dollar notes, disrupting the transacting processes.

RBZ Governor, Dr John Mushayavanhu, said the 21-day transitional period before the issuance of the ZiG notes and coins would see the bank conducting an extensive educational and awareness campaign on the new currency’s structure and security features before the notes and coins are released.

“Between now and April 30, 2024, the bond notes are still legal tender; banks can pay them out to customers, and people should be able to use those to transact and for change.

“It is only after the 30th that we will be introducing the new notes and coins,” he said during a 2024 Monetary Policy Statement breakfast meeting in Harare yesterday.

Dr Mushayavanhu said the ZiG was going to be a stable currency, noting the new money had already started appreciating after gaining in Monday and Tuesday trading sessions on the interbank market, which saw it add 0,2 percent against the US dollar since its introduction on Friday.

The central bank chief noted that due to the adoption of the market-determined exchange rate, the retailers’ 10 percent trading margin was now irrelevant.

“If you are a retailer and you put a 10 percent margin, you are most likely to be outside the market. You cannot put 10 percent on top of a stable exchange rate, so you are going to moderate yourselves,” said the Governor.

He added; “If you do not apply it and take the interbank exchange rate, you are not flouting the law, but if you apply more than 10 percent, you will be above the official exchange rate of 13,50 ZiG and (You will be around) probably 14 ZiG, hence you will price yourself out of business and will not be able to sell your products.”

The Governor noted that while the 10 percent margin was a result of a statutory instrument, due process would be required to remove it.

Statutory Instrument 185 of 2020 authorises dealers and the market to price goods and services based on the prevailing interbank market rate plus a margin of up to 10 percent.

The central bank chief expressed confidence the new currency would be able to retain value given the measures put in place, including maintaining a tight monetary policy stance, floating the exchange rate and occasionally intervening to support the currency and anchoring the currency on precious metals (mainly gold) and foreign exchange.

The RBZ’s reserve asset holdings comprise US$100 million in cash and 2,522 kg of gold worth US$185 million to back the entire local currency component of reserve money.

The Governor noted that reversing the dollarisation trend, whereby 80 percent of transactions in the economy are in US dollars compared to 20 percent in local currency, was a gradual process.

He said that through the MPS measures and new currency, the bank would create increased demand. The measures to promote the new currency would include requiring 50 percent of quarterly payment dates (QPDs) tax obligations to be payable in ZiG.

“As we approach the June QPD, everyone is going to be looking for ZiG. In addition, all the ZiG in this market is not enough to meet 50 percent of the payments.

He said taxpayers who procrastinate taking up ZiG would have to fork out more when the tax payment falls due given the currency would have appreciated.

He also noted that when a retailer has sold their goods, they would rather keep the ZiG and maybe do certain things with the US dollar because they will need that ZiG when the next QPD arrives.

“We are on the 80-20 ratio; when we get to 70-30, certain things will also be allowed, so we gravitate towards ZiG. When we get to 60–40, more towards ZIG, and by the time we get to 50–50, you can do what you want (in terms of paying using ZiG),” he said.

Finance, Economic Development, and Investment Promotion permanent secretary, Mr George Guvamatanga, said the new currency is part of the journey towards reducing the ratio of dollarisation through increased usage of a strong local currency.

“The multi-currency regime was an agreed position between Government and industry and that is why industry is also using the US dollar as we speak today.

“So, in that journey, there will be a point where fuel will be fully sold in ZiG and all duties will be payable in ZiG. There shall be a point where all Government ministries, departments and agencies are forced to accept the currency. We are going to be forcing them very soon,” he said.

Mr Guvamatanga added that the Treasury is working on a circular to all Governments ministries, departments and agencies saying that they cannot insist on payment in US dollars.

“We have not de-dollarised, and we are still in a multi-currency system. It is a journey,” he said.

He noted that over the past two months, the central bank had reiterated the need to create a strong and stable currency.

At the meeting, Confederation of Zimbabwe Retailers (CZR) president, Mr Denford Mutashu, said there was need for a smoother transition and an alternative for people to continue transacting as banks and mobile money services were abruptly discontinued.

He said CZR was currently engaging some retailers who were refusing bond notes to ensure the currency changeover does not affect the transacting public.

“Price and exchange rate stability are very key in the retail sector,” he said.

Zimbabwe National Chamber of Commerce (ZNCC) president, Mr Mike Kamungeremu, said the business community appreciated the continued use of multicurrency and the measures taken to defend the ZiG.

“Apart from just defending the ZiG currency, we need other Government fees to be collected in the local currency and this will erode the crisis of confidence, which is a result of past experiences,” he said.

He noted that business is worried about the settlement of outstanding auction allotments set to take place over the next 24 months, indicating that it is a bit too heavy for them.

Economist Mr Nyasha Kaseke said having its currency gives the economy advantages, while another economist Dr Prosper Chitambara, said the new central bank Governor should break from the mistakes of the past and ensure the bank plays a supportive role in the economy.

latest news

Russia-Zimbabwe discuss ways to enhance bilateral relations and cooperation – Chronicle

Mthabisi Tshuma, [email protected] Amai’s Kitchen, a stand that showcased the philanthropic efforts of First Lady Dr Auxillia Mnangagwa to empower women, the girl child, youths, the elderly, and those with disabilities among other vulnerable groups, proved popular at the just-ended Zimbabwe International Trade Fair (ZITF). It attracted hundreds of visitors including foreigners. Notable among the […]

latest news

All set for triple burial of national heroes – Chronicle

Blessings Chidakwa, Harare Bureau

PRESIDENT Mnangagwa is today expected to preside over the triple burial of national heroes, Cdes Nash Nyasha Dzimiri, Tsitsi Grace Jadagu and Brigadier-General Shadreck Vezha, at the National Heroes Acre, the second ceremony of its kind since independence in 1980.

Multitudes of people are expected to throng the national shrine, with transport having been mobilised from all provinces to afford people the opportunity to bid farewell to the national heroes.

The first triple burial was witnessed in 2021, when the then Foreign Affairs and International Trade Minister Lieutenant General Sibusiso Busi Moyo, Transport and Infrastructural Development Minister Dr Joel Biggie Matiza and former Zimbabwe Prisons and Correctional Services Commissioner-General Major-General Paradzai Zimondi were interred on the same day.

All died of Covid-19-related complications.

Yesterday, church services were held in honour of the three departed national heroes.

The memorial service for Cde Dzimiri was at his Mt Pleasant house, while that of Cde Jadangu was held in Chitungwiza. Brig-Gen Vezha’s service was held at Charles Gumbo Barracks (formerly One Commando Barracks) in Harare.

The respective families were at Charles Gumbo Barracks yesterday for formalities, where the bodies of the three national heroes lay in State ahead of burial today.

Home Affairs and Cultural Heritage Minister Kazembe Kazembe said all was in place for the triple burial, with the programme scheduled to start earlier than usual.

“We expect mourners and dignitaries to be seated by 7am. President Mnangagwa will preside over the burials,” he said.

Minister Kazembe said Vice-Presidents Dr Constantino Chiwenga and Kembo Mohadi, as well as the Zanu-PF national chairman Cde Oppah Muchinguri-Kashiri, were also expected to be in attendance.

He said just like other national events, everyone was welcome to attend, including members of opposition political parties and the diplomatic corps.

Cde Dzimiri was born on June 24, 1958, in Shurugwi and died on April 16 after a short illness, while Brig-Gen Vezha died in a road traffic accident on the same day.

Cde Dzimiri joined the liberation struggle in 1976.

He survived Rhodesian raids that killed thousands of comrades at both Nyadzonia and Chimoio camps in 1976 and 1977, respectively.

He was later selected to undertake security and intelligence training at the famous Nanking Military Academy in China.

At independence, he was attested into the Air Force of Zimbabwe, before being transferred to the Zimbabwe National Army, which he left in 1981.

In 1983, while taking a walk in Harare, he had a chance meeting with President Mnangagwa, who was the then Minister of State Security.

He was subsequently recruited to join the intelligence service as a junior officer.

At the time of his death, he was the Central Intelligence Organisation’s director for investments.

Brig-Gen Vezha was born on August 10, 1961, in Chivi District.

After writing his O-level examinations, he joined the liberation struggle as a Zimbabwe African National Liberation Army (ZANLA) combatant and was trained at the front.

During the ceasefire in 1979, he was based at Dzapasi Assembly Point Base 2, where he underwent further military training.

In early January 1980, he was nominated to travel to North Korea for further military training at Kim Chong Ju Military Academy and Kim II Sung Military University until 1982.

On completion of military training in North Korea, he returned home and was attested into the Zimbabwe National Army on August 1, 1982.

He rose through the ranks to become Brigadier-General in 2018.

Cde Jadagu, who was born on March 11, 1943, in Murewa, succumbed to a short illness on April 18, the day the nation was celebrating its 44th independence anniversary.

She first trained as a police officer and later became a teacher.

During the liberation struggle, she was a war collaborator and after independence, she served as councillor for Ward 16 in Chitungwiza.

She was subsequently appointed special interest councillor in 2013 and senator in 2014.

Cde Jadagu started her political career when she was 17 years old in Mangwende Village, where her uncle (father’s brother) was a chief and an active member of ZAPU.

During the time, her family, led by Chief Mangwende, had a conflict with the Rhodesian native commissioner over national politics.

The whole family was then forced out of the village, which resulted in them seeking refuge in Old Highfield.

That is when she became a youth member of ZAPU, together with the late Cdes Sabina Mugabe, Tsitsi Munyati, Ruth Chinamano and many others.

The national heroine also served in various senior posts in Zanu-PF, including Women’s League Political Commissar in 1983, Central Committee member and National Consultative Assembly member.

Currently, there are 170 heroes buried at the national shrine, but 32 others who were accorded national hero status are buried elsewhere.

There have been four double burials conducted at the national shrine since 2016.

National heroines Cdes Victoria Chitepo and Vivian Mwashita were buried at the same time in 2016.

Then in 2017, national heroes Cdes Maud Muzenda and George Rutanhire were also buried simultaneously, as was the case with Cdes Ellen Gwarazimba and Cde Morton Paul Malianga in January 2021.

Last year, on Heroes Day, the country also witnessed the double burial of Ambassador Johannes Tomana and Brigadier-General Milton Siziba.

latest news

WATCH: Zimbabwe International Trade Fair exhibitors raring to go – Chronicle

Sikhulekelani Moyo, [email protected]

THE 64th edition of the Zimbabwe International Trade Fair (ZITF) roars to life today with most of the exhibition stands complete.

Bulawayo will be the centre of attraction this week as it hosts the country’s annual prime trade showcase at the Zimbabwe International Exhibition Centre (ZIEC)

The trade expo, which runs until Saturday is running under the theme: “Innovation: The Catalyst to Industrialisation and Trade.”

The first three days are business days while April 26 and 27 are public days.

ZITF serves as a platform for showcasing technological innovations that can drive industrial growth and it encourages entrepreneurship by providing a platform for new businesses to connect with potential customers and investors.

Expectations are high that this year’s showcase will position local industry players to clinch major deals and expand their market.

Kenyan President, Dr William Ruto, will officially open the country’s biggest annual trade expo on Friday.

Chronicle Business yesterday toured selected stands and observed workers putting the final touches ahead of today’s opening of the ZITF.

In separate interviews, some of the exhibitors at the ZIEC said they were raring to go.

“This year, the Republic of Belarus will present the biggest stand it has ever made, we will have 31 companies represented from Belarus from different sectors, which include the food industry and pharmacy among others,” said Belinterexpo management specialist, Mr Sergei Gladyshev.

He said they brought tractors that are conducive to the Zimbabwean environment and easy to maintain.

“The aim is to help Zimbabwe to get techniques, which will help in boosting food security and nutrition,” said Mr Gladyshev.

He commended local farmers, saying they produce quality food, which matches international standards.

“I tasted some of the food in Zimbabwe and I can say Zimbabwe is on the right path. I understand you have resources, water, land, electricity,” said Mr Gladyshev.

Deputy Head of Mission for the Kenyan Embassy in Harare, Mr Lazarus Muganda said they are happy to be part of this year’s ZITF.

“We are very honoured as Kenya to have our President, His Excellency Dr William Ruto as the guest of honour who will officially be opening the event. Kenya is prepared to showcase the products and services at this ZITF,” he said.

“We are moving with the theme, which emphasises innovation and we are bringing goods that show how the products can contribute to the innovativeness of entrepreneurship in the current environment and we are very much prepared for the trade fair.”

ZimTrade Southern Region Manager, Mrs Jack Nyathi while some of the exhibitors were yet to fully set up, most of the SMEs under their purview had completed working on their stands.

“In terms of preparations, we are just about ready, just finishing up the final touches to our pavilion.

Our indirect exhibitors, the eight small and medium enterprises that we have this year are ready and raring to go,” she said.

“You find that in terms of products that we have on display this year, we cover a wide range, which includes processed foods, leather products and cosmetics, which are produced using locally sourced raw material like baobab.”

ZITF chief executive officer, Dr Nicholas Ndebele said the response has been good with 624 exhibitors confirming attendance, an increase from last year’s 565.

He said the city started receiving visitors last week.

Deputy Head of Mission for the Kenyan Embassy in Harare Mr Lazarus Muganda

“We as ZITF, the organisers of ZITF, are happy to inform the nation that all is set for the 64th edition of the ZITF. Exhibitors are still doing the final touches on their stands, ready to welcome visitors,” said Dr Ndebele. “We witnessed exhibitors working overnight in preparation for the event.”

Dr Ndebele said there has been a significant growth in terms of the number of international participants, which increased to 26 from last year’s 21.The ZITF Company has been given a mandate to lead the national branding efforts for Zimbabwe while promoting investment and economic growth.

Several high-profile meetings including the Diplomats Forum and Africa Connect Symposium will be held on the sidelines of the ZITF.

The main activities at the 2024 ZITF include the ZITF Welcome Cocktail; the ZITF International Business Conference, which will be officially opened by Vice President Constantino Chiwenga; the ZITF Charity Golf Challenge, ZITF Diplomats Forum, Connect Africa Symposium, which will be officially opened by Vice President Kembo Mohadi and the Tourism Night among others. — @SikhulekelaniM1