Econet Wireless Zimbabwe said that it has resolved network issues that affected some customers’ ability to make calls, use mobile data services, or transact using EcoCash between 2 PM and 3:30 PM on Wednesday, 5 February 2025.
In a statement issued later on Wednesday, the company confirmed that all services had been fully restored. It said:
<blockquote>
We experienced some issues on the platforms that enable our subscribers to make calls, use data or carry out EcoCash transactions, resulting in some of our customers being unable to use the services for about an hour and half, starting around 2pm to 3:30pm today (February 5, 2025).
We are pleased to advise that the challenges have since been successfully resolved, and all services have been fully restored.
We sincerely apologise for the inconvenience this may have caused our valued customers.
</blockquote>

Pindula News

Econet Wireless Zimbabwe had some problems with their network that stopped some customers from making calls, using data, or using EcoCash on February 5, 2025, between 2 PM and 3:30 PM. They fixed the issues and all services are working again. The company apologized for any inconvenience this may have caused to their customers.

Econet Resolves Network Issues, Restores Services After Brief Outage

National Foods Holdings Limited (Natfoods), the country’s largest food producer, has terminated its listing on the Victoria Falls Stock Exchange Limited (VFEX).
In 2024, Natfoods announced its decision to delist, saying it no longer needed capital from public equity markets in the near term.
In a statement issued on 03 February, the Head of VFEX Markets, Robert Mubaiwa, said that Natfoods traded on VFEX for the last time on 31 January. Said Mubaiwa:
<blockquote>
The Victoria Falls Stock Exchange Limited (“VFEX”) hereby notifies the investing public of the voluntary termination of the listing of ordinary shares of National Foods Holdings Limited (NTFD.vx) with effect from 31 January 2025.
The shareholders of NTFD.vx met on 18 December 2024 and passed the resolution for the voluntary termination of its listing on the VFEX in accordance with Section 11 of the VFEX Listing Requirements. 
NTFD.vx applied for the voluntary termination of listing on the VFEX in terms of the provisions of Section 11 of the VFEX Listing Requirements.
As required by Section 64 (1) (a) (i) of the Securities and Exchange Act [Chapter 24:25], the VFEX sought and was granted permission by the Securities and Exchange Commission of Zimbabwe to delist NTFD.vx from the VFEX official list.
In terms of Section 15(1) (d) of the VFEX Listing Requirements, holders of National Foods Holdings Limited’s securities are hereby advised that the securities can no longer be traded on VFEX with effect from 31 January 2025.
</blockquote>

Natfoods, the big food company, has decided to stop being listed on the VFEX stock exchange. They don't need money from the public right now. The last day they traded on VFEX was January 31, 2025. The shareholders of Natfoods agreed to stop being listed on December 18, 2024. The VFEX stock exchange got permission from the government to remove Natfoods from the official list. After January 31, 2025, you can't trade Natfoods shares on VFEX anymore.

Natfoods Delists From Victoria Falls Stock Exchange

FBC Securities Private Limited, a Zimbabwe Stock Exchange-listed stockbroker, has urged the government to take action following the US foreign aid freeze, warning that the move could destabilise critical sectors, worsen exchange rate volatility, and accelerate inflationary pressures.
This call follows the announcement by US President Donald Trump of the country’s withdrawal from the World Health Organisation (WHO) and the freezing of funding to PEPFAR (President’s Emergency Plan for AIDS Relief).
The ban on US foreign aid spending threatens to disrupt antiretroviral drug (ARV) supplies and resources for HIV, tuberculosis (TB), and malaria programs in Zimbabwe.
In a statement titled “US Foreign Aid Halt: Impact on Zimbabwe’s Economy,” FBC Securities Pvt Ltd noted that the aid freeze exacerbates liquidity constraints, foreign currency shortages, and inflationary pressures.
Foreign aid has historically been important to Zimbabwe, supporting healthcare, food security, infrastructure, and social programmes.
Now, with reduced donor inflows, the banking sector, stock markets, and formal businesses may struggle to maintain stability. The statement reads:
<blockquote>
To mitigate these challenges, the Zimbabwean Government must take decisive action by strengthening domestic revenue mobilisation, restoring investor confidence, restructuring state-owned enterprises (SOEs) and improving governance and fiscal discipline,.
Pursuing debt resolution efforts with multilateral institutions, diversifying export earnings and fostering a stable macroeconomic environment will be crucial for weathering the impact of declining external support and ensuring long-term economic resilience.
</blockquote>
FBC Securities suggested that Zimbabwe could seek alternative funding from other international donors, regional partners, and non-traditional allies such as the African Union, Southern African Development Community (SADC), and countries in the global south for financial and technical assistance.
The organisation noted that donor-funded projects and direct humanitarian assistance contribute to local foreign currency liquidity circulation, with NGOs and humanitarian organisations distributing US dollar payments to local suppliers, employees, and contractors.
FBC Securities revealed that NGOs contributed 10 per cent and 9 per cent of total foreign currency receipts into Zimbabwe from January to September 2023 and January to September 2024, respectively. 
The organisation warned that the reduction in these cash inflows would result in less disposable income, affecting consumer spending, particularly in rural and vulnerable communities. FBC Securities said:
<blockquote>
The freeze will also exacerbate foreign currency shortages in the economy, making it harder to finance imports and working capital requirements of private sector businesses.
</blockquote>
FBC Securities highlighted several impacts, including reduced deposits in Foreign Currency Accounts (FCAs), decreased foreign currency inflows, lowered stock market liquidity, and increased volatility in blue-chip stocks.

US aid freeze from the US could hurt Zimbabwe's economy. This could make it hard to get medicine for diseases like HIV and malaria. The country needs to find new ways to get money and help from different countries. The government must work hard to fix the economy and keep things stable. Without help from the US, Zimbabwe may struggle to pay for important things like imports and businesses may face difficulties. It's important for Zimbabwe to find new ways to get money and keep their economy strong.

US Aid Freeze Poses Risk To Zimbabwe’s Economic Stability, Says FBC Securities

CBZ Holdings Limited has laid off 347 workers out of a total staff of 1,448 following a restructuring exercise.
In a statement issued on Saturday, February 1, Group CEO Lawrence Nyazema said the restructuring was aimed at aligning the company’s strategic direction with the evolving business landscape.
Nyazema assured that the company is committed to supporting the affected employees during this transition and providing the necessary resources to assist them in their next steps. Reads the statement:
<blockquote>
In October 2024, we undertook a restructuring exercise across our Group of Companies to better align our strategic direction with the evolving business landscape.
This initiative has been a key component of our broader efforts to enhance operational efficiency, strengthen our market position and ensure long-term sustainability.
By adapting to the changing environment, we aim to position the organization for continued growth and success in a competitive market.
We would like to confirm that we have now concluded the restructuring exercise as of 31 January 2025. As part of the process, a total of 347 staff roles were impacted in the second phase of the restructuring out of a total staff complement of 1448.
We are deeply grateful for the contributions of all affected employees, and we are committed to supporting them during this transition and providing the necessary resources to assist in their next steps.
As CBZ Holdings, we remain fully committed to strengthening the organization for the future while continuing to serve our stakeholders with excellence.
</blockquote>

CBZ Holdings, a company, recently let go of 347 workers out of their total staff of 1,448 to make changes that will help them succeed. The CEO, Lawrence Nyazema, said this was to make sure the company can do well in a changing world. The company is giving support to the workers who were affected and helping them find new jobs. They are trying to make the company better and keep doing a good job for their customers.

CBZ Holdings Lays Off 347 Workers

OK Zimbabwe, the country’s largest retailer by store numbers, has shut down five branches due to a challenging trading environment, reported <a href="https://www.businessweekly.co.zw/ok-zimbabwe-treading-in-choppy-waters-closes-five-branches/">Business Weekly</a>.
However, critics point to several factors behind the closures, including a bloated management structure with at least nine directors and over 30 senior executives, all with luxury vehicles and high perks.
Questions have been raised about decisions made by the company’s leadership, such as multiple land acquisitions and dividend declarations, which have reportedly tied up cash or misallocated funds in recent years.
In addition, OK has faced difficulties restocking, with many outlets experiencing empty shelves, particularly in food products. Suppliers are reportedly unwilling to provide goods on credit or in local currency.
The company is also struggling with US$17 million and ZiG537 million in outstanding payments to suppliers, some of whom have withheld supplies despite part payments.
In an internal memo, OK announced plans to cut its workforce, closing five outlets—Robson Manyika, Glen Norah, Kuwadzana Express, Mbare (all in Harare), and Chitungwiza Town Centre, as well as Entumbane in Bulawayo. A sixth branch is scheduled to close in March.
The closures will result in job losses, primarily targeting low-level workers, with severance pay set at one month’s salary for every year worked, along with three months’ notice pay and payment for unused leave.
The branches being closed are among those making losses or operating from rented spaces. OK operates 72 branches across Zimbabwe.
A company executive, who wished to remain anonymous, told Business Weekly that OK’s troubles are due to currency and economic issues in the US dollar-dominated economy. 
The retailer’s situation worsened after receiving goods on credit in US dollars, which they now struggle to pay off due to cash flow issues.
Despite the introduction of the Zimbabwe Gold (ZiG) in April 2024, which stabilized the local currency, it hasn’t improved OK’s fortunes.
The retailer also faces intense competition from the informal sector, where suppliers prefer cash transactions in US dollars, allowing informal traders to offer lower prices due to fewer regulatory burdens and tax obligations.
Award-winning journalist Hopewell Chin’ono, citing industry insiders, said that six more OK branches will be closing soon. He added:
<blockquote>
These closures bring unemployment not only to OK Zimbabwe but also to downstream and upstream industries.
Downstream industries are businesses that rely on OK Zimbabwe to sell their products, such as farmers, suppliers, and manufacturers of goods stocked in the supermarkets.
Upstream industries are businesses that provide logistics like truckers that moved goods to OK Zimbabwe, packaging and maintenance service providers.
</blockquote>

OK Zimbabwe, the biggest store in the country, closed five branches because they were struggling. People are blaming the company's leaders for making bad decisions and not managing money well. Suppliers don't want to give them products unless they pay in US dollars. The company owes a lot of money to suppliers too. They are cutting jobs and closing more branches to try to save money. The company is having a hard time because of the economy and competition from other stores. Even though the local currency got better, OK Zimbabwe is still struggling.

Retail Giant OK Zimbabwe Shuts Down Five Branches

Listed wine and spirits manufacturer African Distillers Limited (Afdis) is optimistic that the ongoing crackdown on illicit and smuggled alcohol will help reduce unfair competition from the informal market, reported <a href="https://www.herald.co.zw/afdis-optimistic-as-crackdown-on-smuggling-intensifies/">The Herald</a>.
Afdis, a subsidiary of Delta Corporation, has long highlighted the negative impact of illicit products—often non-compliant with regulations—and the rise of irregular imports from neighbouring countries on its sales volumes and overall operations.
Delta Corporation company secretary Faith Musinga in the third quarter trading update to December 2024, said:
<blockquote>
It is hoped that the current blitz against illicit and smuggled alcohol will curtail unfair competition.
</blockquote>
In terms of performance for the reviewed period, Afdis achieved a 14% volume growth for the quarter compared to the previous year, and a 12% growth year-to-date.
The Ready-to-Drink (RTD) and Wine segments, which grew by 12% and 47% respectively, benefited from improved product supply and a decline in informal imports.
The government has ramped up efforts to crack down on smuggled goods in a bid to boost the competitiveness of local industries.
The Zimbabwe Revenue Authority (ZIMRA) has urged travellers and cross-border traders to fully comply with customs regulations to avoid penalties from law enforcement agencies.
Travellers are required to present valid proof of their customs declarations at designated roadblocks.
Failure to declare goods—whether intentional or not—can lead to serious consequences, including hefty fines and the confiscation of goods.

Afdis, a company that makes wine and spirits, is happy about the crackdown on illegal alcohol. They hope it will help them compete better. Afdis had a 14% growth in sales compared to last year. The government is also trying hard to stop illegal imports to help local businesses. People traveling must follow customs rules or face fines and losing their goods. This news shows that Afdis is doing well and wants to keep growing despite the challenges from illegal products.

Afdis Eyes Continued Growth Amid Crackdown On Smuggled Alcohol

Zimbabwe’s inflation rate saw a sharp rise in January, both in U.S. dollars and in local currency, the ZiG.
Month-on-month inflation in U.S. dollar terms increased to 11.5% in January, up from 0.6% in December.
In local currency terms, inflation also surged, reaching 10.5% in January, compared to a 3.7% rise in December 2024.
Year-on-year inflation in U.S. dollar terms accelerated to 14.6% in January, following a 2.5% increase in December.
In an update on Tuesday, the Zimbabwe National Statistics Agency (ZimStat) said:
<blockquote>
The USD month-on-month inflation rate was 11,5% in January 2025, gaining 10,9 percentage points on the December 2024 rate of 0,6%. This means that prices as measured by the all items USD CPI, increased by an average of 11,5% from December 2024 to January 2025.
The USD month-on-month Food and Non-Alcoholic Beverages inflation rate was 16,8% in January 2025, gaining 14,9 percentage points on the December 2024 rate of 1,9%. The December 2024 USD month-on-month non-food inflation rate was 9,1%, gaining 9,1 percentage points on the December 2024 rate of 0,0%.
</blockquote>
ZimStat’s acting director of macroeconomics, Mable Chimhore, said Zimbabwe’s inflation increased by 6.8 percentage points, rising from 3.7% in December 2024. She said:
<blockquote>
The ZiG month-on-month inflation rate was 10,5% in January 2025, gaining 6,8 percentage points on the December 2024 rate of 3,7%.
For the month of January 2025, the ZiG CPI for housing, water, electricity, gas and other fuels contributed mostly to the month-on-month change in index (inflation rate) by a magnitude of 6,3% and followed by food and non-alcoholic beverages with a magnitude of 2,4%.
</blockquote>
Independent economist Prosper Chitambara told Reuters that last year’s severe regional drought, along with new taxes introduced this month, likely contributed to the rise in inflation. Said Chitambara:
<blockquote>
It could be the new taxes that have taken effect this month. The huge cost is passed on to consumers. Before the next harvest season we are likely to see an upward trend of inflation as drought continues to exert inflationary pressures.
</blockquote>

Zimbabwe's prices went up a lot in January. Prices increased by 11.5% in U.S. dollars and 10.5% in local currency. Inflation also went up from last year. The increase in prices was mainly in food and non-alcoholic drinks. An economist thinks the drought and new taxes are making prices go up. Prices may keep going up until the next harvest because of the drought.

Zimbabwe Sees Sharp Rise In Inflation Rates For January, Both In USD And ZiG

The Government of Zimbabwe has placed 19 products under the anti – smuggling watch list as it widens its crackdown on smuggling and illicit trade.
Under the Customs and Excise (Designated Deemed Smuggled Goods) Regulations, 2025, the government has introduced measures to curb smuggling. With immediate effect, ‘imported’ goods will be deemed smuggled unless the importer (wholesalers, retailers and individuals) produces valid evidentiary documents (including payment of duties and validly issued receipts).
Among some of the goods are alcoholic and non-alcoholic beverages, electrical appliances, dairy products, detergents, tyres and sugar. It appears these interventions are meant to restore sanity in the retails sector that has in recent months witnessed big players such as OK and “Pick n Pay” recording significant setbacks.  
Businesses found in possession of goods listed under the Customs and Excise (Designated Deemed Smuggled Goods) Regulations, 2025, will be heavily penalized by the Zimbabwe Revenue Authority (ZIMRA) in terms of the schedule.
Legal expert, Mr. Lenon Rwizi has remarked:
<blockquote>
‘Ordinarily once goods deemed to have been smuggled are ceased by ZIMRA, appeals directed to the Commissioner should be lodged, setting out the grounds upon which they should be released. We are yet to see how these Regulations are going to practically operate but judging from social media reactions, they might not be a lasting remedy to the problem of smuggling”.
</blockquote>

The Zimbabwe government is cracking down on smuggling and illicit trade by putting 19 products on a watchlist. People need to have valid documents to prove they are not smuggling goods like beverages, appliances, dairy products, detergents, tires, and sugar. Businesses caught with these goods will be penalized by Zimbabwe Revenue Authority. People can appeal if they think their goods were wrongly seized. Some experts think these new rules might not solve the smuggling problem in the long term.

Zimbabwe Places 19 Products Under the Smuggling Watch List

KLM Royal Dutch Airlines has announced it will cease its freight operations to Harare starting this April, citing operational challenges.
In a notice to customers, Tiger Freight’s Managing Director Pim de Wit assured clients that the shipping services provider is exploring measures to mitigate the impending disruption. He said:
<blockquote>
KLM’s decision to reduce their African freighter operations to three flights weekly, with Harare no longer included, is a result of their evolving fleet priorities and operational efficiency concerns.
</blockquote>
Pim de Wit said that frequent 48-hour delays, cancellations, and rescheduling have significantly impacted Harare flights.
He further explained that KLM Royal Dutch Airlines’ decision to cease operations was influenced by factors such as the short flight leg, the lack of local maintenance facilities, and unstable freight volumes. The firm said:
<blockquote>
We are working closely with Airflo KE to ensure alternative routings, where capacity remains available to transport your goods.
</blockquote>
This includes partnering with Ethiopian Airlines to provide direct connections from Harare to Addis Ababa, followed by freighter flights to Europe. Additionally, FX Logistics has obtained permits for cargo handling operations in Addis Ababa.
<blockquote>
Middle Eastern Carriers: Emirates and Qatar Airlines remain viable options for both westbound (Europe) and eastbound (Asia) freight, although please note that westbound rates are currently higher due to high demand from e-commerce.
</blockquote>
De Wit said that there are options to route Harare cargo via Johannesburg, although this may lead to extended handling times. He said:
<blockquote>
We remain committed to providing the highest level of service during this transition and will continue to work on identifying the most efficient and reliable alternatives. Should you have any concerns or require further details, please do not hesitate to reach out.
Thank you for your understanding and continued cooperation. We will provide further updates as the new, solutions are put in place.
</blockquote>

KLM Royal Dutch Airlines will stop sending freight to Harare in April. They are facing challenges with delays and cancellations. They are working on alternative routes with other airlines like Ethiopian Airlines. Customers can still use Middle Eastern carriers like Emirates and Qatar Airlines. Even though there may be delays, they are working to find the best solutions. They will keep customers updated as they make changes.

KLM Royal Dutch Airlines To Cease Harare Freight Operations In April

The shortage of consumer goods from formal wholesalers and retailers is partly due to ongoing anti-smuggling operations by a multi-sectoral taskforce, a senior official has stated.
The Ministry of Industry and Commerce is leading the taskforce, which includes ZIMRA, the Zimbabwe Republic Police (ZRP), the Reserve Bank of Zimbabwe (RBZ), the Consumer Protection Commission, and other law-enforcement agencies.
George Charamba, spokesperson for the Presidency, commented on the recently promulgated Customs and Excise (Designated Deemed Smuggled Goods) Regulations, 2025.
These regulations require manufacturers, wholesalers, and retailers to provide proof that customs duty has been paid for goods in their possession.
Charamba revealed that ZIMRA is currently holding 30-tonne loads of consumer goods sourced from South Africa, intended for smuggling into Zimbabwe. Charamba posted on X:
<blockquote>
What you may not know is that ZIMRA is holding 30-tonne loads upon loads of consumer goods sourced in SA and meant to be smuggled into Zimbabwe. These trucks belonged to different wholesalers and retailers.
The low stock levels we see in the formal market are partly related to management issues and partly to impounded contraband from the ongoing anti-smuggling operations. We know where we are going; there will be order in the market. Trust us!
</blockquote>
Over the weekend, ZIMRA Commissioner-General Regina Chinamasa said that ZIMRA impounded goods valued at approximately US$2.4 million and state warehouses are at full capacity with recovered goods.

ZIMRA is stopping people from smuggling goods into Zimbabwe, which is causing a shortage of items in stores. The taskforce includes different agencies working together to stop smuggling. The government is requiring businesses to show proof that they paid customs duty for their goods. ZIMRA has impounded a lot of goods from South Africa that were meant to be smuggled. The market will become more organized once the smuggling is stopped. ZIMRA has impounded goods worth $2.4 million and their warehouses are full. The government is working to fix the problem.

ZIMRA’s Smuggling Crackdown Blamed For Empty Shop Shelves

The Confederation of Zimbabwe Retailers (CZR) is alarmed by the closure of formal retail and wholesale businesses and has urged President Emmerson Mnangagwa to intervene and save the sector.
In a statement on Sunday, CZR president Denford Mutashu said the continued closure of formal retail and wholesale businesses is a direct consequence of the tough economic environment that has consistently failed to support formalized sector players who face stiff competition from informal businesses and vendors, most of whom have no tax obligations.
Mutashu expressed concern that authorities continue to downplay the crisis. He said:
<blockquote>
The Confederation of Zimbabwe Retailers is deeply concerned about the continued closure of formal retail and wholesale businesses, a direct consequence of the prevailing turbulent economic environment that has consistently failed to support formalised sector players.
The recent closure of several outlets under the N. Richards Group, coupled with Spar Zimbabwe’s painful decision to shut down Queensdale Spar, Choppies Zimbabwe’s exit from the market, and Mahommed Mussa’s significant reduction of shop space by 60%, highlights the growing crisis.
As the representative association for these and other brands, CZR is alarmed that while formal businesses face enormous challenges, the authorities continue to present a different picture of the operating environment.
</blockquote>
Mutashu said the unregulated informal sector offers goods at much lower prices because it operates outside compliance with statutory obligations such as taxes, licensing fees, and labour laws.
He called for urgent intervention by President Mnangagwa to “rescue what remains of the formalized retail and wholesale sector.” Said Mutashu:
<blockquote>
While CZR acknowledges the continued support from the Ministry of Industry and Commerce, it is clear that the root causes of these challenges are fiscal and monetary in nature. These require urgent and decisive action to ensure the survival of formal businesses.
CZR therefore appeals to the Presidium to prioritise interventions aimed at saving jobs and mitigating the ongoing wave of shop closures and retrenchments.
</blockquote>

The Confederation of Zimbabwe Retailers is worried about many formal retail stores closing down. They blame the tough economy and competition from informal businesses. They want President Mnangagwa to help them. Many big stores like N. Richards, Spar, and Choppies are shutting down. The informal sector sells goods cheaper because they don't pay taxes. The retailers want the government to take urgent action to save their stores and jobs. They need help with money and rules to survive. They are asking the President to do something quickly to stop more stores from closing.

Formal Retailers Alarmed By Business Closures, Seek Mnangagwa's Intervention

Tafadzwa Muguti, the Permanent Secretary for Presidential Affairs and Devolution in the Office of the President and Cabinet has reaffirmed that the importation and sale of second-hand clothing remain banned in Zimbabwe, reported Chronicle.
The government has directed all provinces to burn confiscated smuggled consignments to protect local producers.
The ban on second-hand clothing imports was first implemented in 2015, following intense lobbying by industry and commerce leaders.
Despite the ban, the sale of second-hand clothing (amabhele/mabhero) has gained popularity in recent years, both in Zimbabwe and across the region, due to enforcement challenges and rampant smuggling.
Second-hand clothes have become a source of livelihood for thousands of people.
Established textile, leather, and clothing factories have suffered significant losses due to cheap second-hand products, citing unfair competition.
These businesses have to meet statutory obligations, salaries, rentals, and utilities, which affect their final product pricing.
Consequently, established businesses continue to call upon the government to implement wider protectionist policies to safeguard existing investments and preserve jobs.
Muguti was in Bulawayo on Thursday, where he toured the giant clothing factory, Carousel Manufacturing, a subsidiary of the listed Edgars Stores Group.
He reiterated that the ban on second-hand products remains in place and that confiscated items must be incinerated at government hospitals across the provinces.
Said Muguti:
<blockquote>
This is an industry that has been affected by second-hand clothes. As Government we have banned the sale of second-hand clothing.
My office has directed all provinces to confiscate second-hand clothing immediately. We have been doing that since December and we are now burning them at the provincial hospitals.
</blockquote>

The government in Zimbabwe is getting rid of second-hand clothes by burning them because they hurt local businesses. The sale of second-hand clothes is banned in Zimbabwe but still happens a lot. The ban started in 2015 because it was bad for local clothing factories. Many people depend on selling second-hand clothes for a living. The government is trying to protect local businesses and jobs by enforcing the ban and destroying confiscated second-hand clothes. Muguti, a government official, visited a clothing factory to show support for the ban on second-hand clothing.

Government Vows To Confiscate And Burn Second-Hand Clothing

Business leaders have urged the Reserve Bank of Zimbabwe (RBZ) to implement measures that promote economic stability, and growth, and reduce regulatory costs, reports <a href="https://businesstimes.co.zw/business-demands-bold-actions/">Business Times</a>.
This call comes as RBZ Governor John Mushayavanhu is set to present the 2025 Monetary Policy Statement in the coming weeks.
The CEO Africa Roundtable (ART) said the instability in financial markets has led to a rise in informal economic activities, with over US$2.7bn reportedly held outside the formal banking system due to diminished trust in RBZ policies. The CEO ART said in its position paper:
<blockquote>
A vicious cycle of volatility in inflation and exchange rates has driven formal businesses into informal operations.
The decline in trust toward local currency ZiG stems from poor policy management and insufficient consumer demand for its usage.
</blockquote>
The ART called on the government to lead by example, mandating the use of local currency in key transactions and addressing structural inefficiencies to reduce arbitrage opportunities.
ART said the RBZ to build and maintain foreign reserves equivalent to at least three months of import cover. This would strengthen the central bank’s capacity to guide monetary and financial markets effectively.
With about 70% of economic activity in the informal sector, business leaders urged the government to integrate these players into the formal economy through education, incentives, and tailored policies.
The Zimbabwe National Chamber of Commerce (ZNCC) suggested reducing transaction fees to encourage digital payment adoption, especially among Micro, Small, and Medium Enterprises (MSMEs).
ZNCC urged the central bank to prioritise the stabilisation of the exchange rate for the upcoming monetary policy.
They noted significant challenges in the interbank market, where the “Willing Seller, Willing Buyer” model suffers from limited foreign currency supply.
ZNCC also recommended offering competitive exchange rates and reducing transaction costs to incentivize private sector players with surplus foreign currency to participate in formal markets.
Despite some stability, the 20% premium between official and parallel market rates erodes confidence in ZiG, perpetuating inflation and undermining the local currency, said the ZNCC.
Business leaders also called for issuing higher-denomination notes to facilitate large transactions in a cash-based economy.
ZNCC proposed maintaining a dual currency system in the short to medium term while gradually increasing local currency transactions.
The Confederation of Zimbabwe Retailers (CZR) President, Denford Mutashu, noted that fluctuations in ZiG’s value against the US dollar disrupted pricing strategies, eroded consumer confidence, and reduced purchasing power.
Mutashu stressed the importance of policy consistency and incentivizing businesses that prioritize local currency transactions to help restore confidence in ZiG.

Business leaders want RBZ to make things easier for businesses by reducing costs. They say the instability in financial markets is causing businesses to work informally. The leaders want the government to use the local currency more and fix problems in the system. They also want foreign reserves to be kept for emergencies. They think businesses in the informal sector should be helped to join the formal economy. The leaders want lower fees for digital payments and stable exchange rates. They also want higher-value notes for big transactions and suggest using both local and foreign currencies for now. They hope these changes will make things better for businesses and consumers in Zimbabwe.

Business Leaders Urge RBZ To Reduce Regulatory Costs

The Ministry of Industry and Commerce is conducting a national blitz on compliance with reserved sector regulations.
Certain sectors of the economy, such as pharmaceutical retailing and haulage and transport logistics, are reserved for local people.
However, nationals from countries like the DRC, Pakistan, and Nigeria dominate these sectors, often without the required operating licenses.
On Thursday, 23 January, the Ministry announced that the number of reserved sectors was increased from 12 to 17 through an amendment to the Indigenisation and Economic Empowerment Act. It said:
<blockquote>
The Indigenisation and Economic Empowerment Act was amended through Finance Act No. 2 of 2024. The amendment means an increase in the number of reserved sectors from 12 to 17.
The added sectors include pharmaceutical retailing, haulage and transport logistics, borehole drilling, customs and clearing and shipping and forwarding.
</blockquote>
Industry and Commerce Deputy Minister Raji Modi recently told <a href="https://businesstimes.co.zw/foreign-nationals-hijack-retail-sector/">Business Times</a> that some retail outlets operated by foreign nationals in Zimbabwe violate the law. Said Modi:
<blockquote>
We have a problem with foreign nationals from the region operating our local retail shops and it is not only them, there are the Chinese also who are in the retail sector because they are not supposed to be doing so, the retail sector is only reserved for Zimbabwean citizens.
Unfortunately, they are using our local Zimbabwean names or workers’ names to obtain licenses and they are doing it illegally.
</blockquote>
Former ZANU PF Harare provincial political commissar who once served as Harare South MP Shadreck Mashayamombe claimed that at least 90% of tuckshops in Harare are owned by foreign nationals.

The Ministry of Industry and Commerce is making sure people follow the rules in some special parts of the economy. Some jobs, like selling medicine and transporting things, are just for local people. But many foreigners from places like DRC, Pakistan, and Nigeria are doing these jobs without the right permission. The Ministry made a new rule to include more jobs that only locals can do. Some foreign people are breaking the law by running stores illegally. A former politician says lots of small shops in Harare are owned by foreigners. The Ministry wants everyone to follow the law and only locals to do these special jobs.

Industry And Commerce Ministry Enforces Compliance In Reserved Sectors

CBZ Holdings Limited (CBZ) has decided to stop pursuing more shares in First Mutual Holdings Limited (FMHL) after the Competition and Tariff Commission (CTC) blocked the move.
In December 2024, the CTC blocked CBZ from buying more shares in FMHL because they were concerned it would create too much market power for CBZ, which could harm competition.
CBZ already owned 36.22% of FMHL after buying 31.22% shares from the National Social Security Authority (NSSA) in September 2023. At that time, NSSA had a 65.53% stake in FMHL.
According to Zimbabwe Stock Exchange rules, once CBZ reached this level of ownership, they had to make an offer to buy the remaining shares from other shareholders.
So, CBZ’s total stake in FMHL was 36.22%, including their previous 5% ownership. In a statement issued on Wednesday, CBZ said:
<blockquote>
Further to previous cautionary statements issued in respect of a potential acquisition of a complementary business in the financial sector, the last of which was issued on November 4, 2024, the directors of CBZ Holdings Limited wish to advise all shareholders and the investing public that the company received a decision from the Competition and Tariff Commission (CTC) on December 9, 2024 in respect in of the potential acquisition.
The CTC set various conditions for approval of the transaction and having considered the nature of the conditions, the directors have decided that company will no longer proceed with the transaction.
Accordingly, shareholders and the investing public are hereby advised that the company will no longer be proceeding with the acquisition of a complimentary business as previously announced. No further announcements will be made in respect of this issue.
</blockquote>
Social media personality Mmatigari criticized the Competition and Tariff Commission (CTC) for their decision.
He said the CTC is run by “very dumb people” with a “village mindset,” which he believes goes against the goal of creating a $100 billion economy. He wrote on X:
<blockquote>
We can’t just build Zimbabwe on the back of digging up minerals off the ground and shipping them off to foreign nations, we must build banks with the ability to scale. Africa is open for Zimbabwe to take.
These same people allow Innscor to buy and shut down competition but will block the CBZ / ZB / FML merger on myopic grounds.
Banking in Zim is an oligopoly. There is no meaningful competition in the Zimbabwean market. All the banks here are weak, have no scale and leach off consumers.
There is no reason whatsoever to think that the more they are the better the service consumers get.
We need strong banks at home to conquer the region. The region is already being overrun by banks from West Africa takangoti vavava.
Ecobank bought a local bank here. It’s from West Africa. Access Bank bought BancABC in Botswana, Mozambique and Tanzania. It’s from Nigeria. Stanbic bought a local bank ANZ Grindlays etc…
We have South African banks here: Nedbank, Stanbic, CABS – they come here because their parent countries empowered them to conquer regional markets.
</blockquote>
Mmatigari criticized the CTC for blocking the CBZ merger, saying it goes against the national goal of building a $50 billion banking sector in the next 10 years.
He suggested that when President Emmerson Mnangagwa returns from his annual leave early next month, his priority should be to use his executive authority to override the CTC’s decision and get them in line.

CBZ wanted to buy more shares in FMHL, but a commission stopped them. They already owned 36.22% of FMHL. They had to offer to buy the remaining shares. But the commission's conditions made CBZ stop pursuing the deal. Now, CBZ will not try to buy more shares in FMHL.

CBZ Abandons Pursuit Of FMHL Shares After Regulatory Block

The Zimbabwe National Chamber of Commerce (ZNCC) has raised concerns regarding the scarcity of United States dollar sellers on the Willing Buyer Willing Seller (WBWS) platform.
This shortage, they argue, is hindering the productive sector’s ability to perform optimally.
In January 2024, the Reserve Bank of Zimbabwe (RBZ) transitioned from the Foreign Exchange Auction System to the WBWS model, envisaging it as a more accurate reflection of the market exchange rate.
However, the ZNCC’s latest State of Industry and Commerce tracker indicates that the WBWS platform is predominantly populated by foreign exchange buyers rather than sellers.
This imbalance in market participants is creating challenges for the productive sector, which relies heavily on access to foreign currency for its operations. The ZNCC report reads in part:
<blockquote>
After the January 2024 disbandment of the Auction System, some firms have been getting foreign currency on the interbank market on a Willing Buyer Willing Seller (WBWS) model.
The lack of willing sellers on the formal market has meant that the WBWS has not been able to meet the foreign currency demand by firms, thus curtailing the achievement of maximum productive capacity and in turn depressing general economic activities.
</blockquote>
The ZNCC is a non-profit, membership-based organization that advocates for its members’ interests and promotes economic growth by empowering businesses.

The Zimbabwe National Chamber of Commerce is worried because there are not enough people selling US dollars on the interbank market. This makes it hard for businesses to get the money they need to work well. The Reserve Bank of Zimbabwe changed how the market worked earlier this year, but now there are more people buying dollars than selling them. This is a problem because businesses need dollars to do their work. The ZNCC wants more sellers so that businesses can get the money they need to grow and be successful.

ZNCC Frets Over The Scarcity Of USD Sellers On Interbank Market

The Reserve Bank of Zimbabwe (RBZ) governor, John Mushayavanhu, is under increasing pressure from industry and commerce leaders to address the escalating liquidity crisis crippling operations across sectors.
Mushayavanhu met with business leaders last week, who voiced their concerns. They said the liquidity squeeze, resulting from the central bank’s tight monetary policy, has left businesses struggling to meet financial obligations and maintain operational efficiency.
Zimbabwe National Chamber of Commerce (ZNCC) CEO, Christopher Mugaga, confirmed the business leaders’ meeting with Mushayavanhu to <a href="https://businesstimes.co.zw/business-exert-pressure-on-rbz-governor/">Business Times</a>. He said:
<blockquote>
We just came out of a meeting with the central bank governor on the Monetary Policy Statement submissions where we discussed the current crunch in terms of the Zimbabwe Gold [ZiG] liquidity.
So in our engagements with the central bank governor, we raised the issue of liquidity squeeze. We strongly believe there is a liquidity crunch hence we discussed with the governor the need to address that challenge.
The crunch has disrupted operations in most companies resulting in companies struggling to meet their ZWG obligations. We are hoping there will be an injection in the market.
</blockquote>
Also speaking to Business Times, ZNCC president Tapiwa Karoro suggested that the RBZ raise the foreign currency retention portion to above 75%, helping industry players access more forex.
Sekai Kuvarika, CEO of the Confederation of Zimbabwe Industries (CZI), said:
<blockquote>
Generally, the market is short in both USD and ZWG because of the increase in reserve requirements which mainly impacted banks and has constrained them on the lending side impacting industry and the economy.
Working capital constraints are a major issue at the moment. The resultant vicious cycle of increased demand for that liquidity may lead to defaults across value chains and affect credit cycles.
</blockquote>
Economists believe the RBZ’s efforts to control inflation and stabilize the Zimbabwe Gold (ZiG) currency have led to a liquidity crunch.
However, RBZ deputy governor, Innocent Matshe, defended the bank’s policies, stressing the importance of maintaining balance. Said Matshe:
<blockquote>
Too much liquidity will cause inflationary pressures in the economy and instability in the exchange rate.
On the other extreme, too little liquidity will lead to settlement failures and financial instability hence there is a need to balance liquidity to support the smooth functioning of the banking sector and payment systems.
</blockquote>
Economist Professor Gift Mugano criticized the RBZ’s tight monetary policy, arguing it hasn’t addressed the underlying economic challenges. Said Mugano:
<blockquote>
From its introduction, ZiG was not backed by fundamentals hence it was doomed to fail.
The government’s current approach-delaying payments to suppliers and, contractors and exporters’ 25% surrender portion- is unsustainable.
These policies are industry and will only exacerbate the economic crisis.
You don’t hold a payment of importers and suppliers, you don’t hold a payment of contractors, and you don’t hold a payment of exporters when you hold 25% of the surrender requirement portion. The authorities are killing the industry there and that will not sustain ZiG.
</blockquote>

The RBZ governor is getting pressure to fix the money problem hurting businesses in Zimbabwe. The economy is struggling because there isn't enough money. Business leaders met with the governor to talk about the issue and ask for help. They want more money in the market to fix the problem. The RBZ says they need to balance the money so there isn't too much inflation. But some experts think the RBZ's policies are making things worse. They say the government needs to pay its bills and not hold onto money.

Mounting Pressure on RBZ Governor Over Sector-Wide Liquidity Crunch

Foreign nationals from China, the Democratic Republic of Congo, Rwanda, Tanzania, and other countries are reportedly dominating Zimbabwe’s retail sector, pushing local, bona fide retail outlets out of business.
These foreign nationals are also accused of selling counterfeit products and operating without proper licenses.
Major retail chains such as OK Zimbabwe, Spar, and TM Pick n Pay are struggling, allegedly due to the growing presence of makeshift shops primarily run by foreign nationals in Harare’s downtown and various suburbs.
The Constitution of Zimbabwe Amendment No. 20 of 2013 prohibits foreign nationals from owning or operating retail shops, reserving these rights exclusively for Zimbabwean citizens.
Industry and Commerce Deputy Minister Raji Modi told <a href="https://businesstimes.co.zw/foreign-nationals-hijack-retail-sector/">Business Times</a> that some retail outlets operated by foreign nationals in Zimbabwe violate the law. Said Modi:
<blockquote>
We have a problem with foreign nationals from the region operating our local retail shops and it is not only them, there are the Chinese also who are in the retail sector because they are not supposed to be doing so, the retail sector is only reserved for Zimbabwean citizens.
Unfortunately, they are using our local Zimbabwean names or workers’ names to obtain licenses and they are doing it illegally.
</blockquote>
Modi said the Ministry has engaged relevant authorities, including ZIMRA, to develop a strategy for addressing the illegal operations in the retail sector, which are having a significant negative impact on the country’s economy.
Former ZANU PF Harare provincial political commissar who once served as Harare South MP Shadreck Mashayamombe said:
<blockquote>
At least 90% of these tuckshops are owned by foreign nationals. They have destroyed all the big supermarkets in our country. OK Zimbabwe is seriously struggling as the biggest employer in the grocery retail business.
In these tuck-shops, our local brothers and sisters are used as loaders and other menial work. These people don’t pay tax and the question is who is protecting these people?
I am not xenophobic and I will never be one but we cannot destroy what we have, our brothers must follow our laws.
</blockquote>
Foreign-owned tuckshops are reportedly conducting transactions primarily in United States dollars, deliberately avoiding the use of the local currency, the ZiG.
Meanwhile, a senior government official, speaking to Business Times, claimed that many refugees, reportedly fleeing Tongogara Camp in Manicaland Province, have flooded the streets of Harare, where they are allegedly engaged in money laundering activities.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Foreign nationals from countries like China, Congo, Rwanda, and Tanzania are taking over retail shops in Zimbabwe. They are selling fake products and not following the law. This is causing big stores like OK Zimbabwe and Spar to struggle. Zimbabwean citizens are supposed to own and operate retail shops, not foreigners. The government is trying to stop this illegal activity. Many small shops controlled by foreign nationals are not paying taxes and are avoiding using the local currency. Refugees are also said to be involved in illegal activities in Harare.

Retail Sector In Zimbabwe Overrun By Foreign Nationals

Sugar producer Tongaat Hulett Zimbabwe plans to lay off 1,000 workers by August this year as part of a cost-cutting strategy to navigate the country’s currency instability and inflationary pressures.
As one of Zimbabwe’s largest employers, Tongaat Hulett Zimbabwe currently has a workforce of 16,000.
The company operates two sugar mills in the country, with a combined capacity to crush 3.5 million tons of sugarcane annually.
However, the company has been grappling with rising labour and fertiliser costs, as well as losses from the country’s volatile currency.
Tongaat Hulett Zimbabwe spokesperson Dahlia Garwe told <a href="https://www.reuters.com/world/africa/tongaat-hulett-zimbabwe-lay-off-1000-workers-amid-currency-crisis-2025-01-16/">Reuters</a> that the layoffs will be carried out in three phases, with 500 employees from each of the company’s mills in Hippo Valley and Triangle being affected between February and August. Said Garwe:
<blockquote>
It is very difficult to manage such a large workforce, so we need to look at ways and means of becoming a lot more efficient in how we do our business.
</blockquote>
The company reported that its profit margins have dropped by 55% since 2022, while labour costs have surged by 113%, leaving the sugar producer burdened with huge debts. Said Garwe:
<blockquote>
It is part of a strategy to bring our costs under control and put the company on an even path.
</blockquote>
Tongaat Hulett Zimbabwe has said its “unprecedented operational challenges” are unrelated to the ongoing business rescue process at its South African parent company.
In October 2022, Tongaat Hulett’s South African operations entered business rescue proceedings following an accounting fraud scandal.
As part of the business rescue plan, Tongaat Hulett is in the process of selling its Zimbabwean assets—comprising the wholly owned Triangle Sugar Estates and a 50.3% stake in Hippo Valley Estates—to a Mauritius-registered investment company.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Tongaat Hulett Zimbabwe is a big sugar company in Zimbabwe. They want to lay off 1,000 workers because of money problems. The workers will lose their jobs by August. The company has too many workers and needs to save money. They have too much debt and costs are rising. The company is planning to sell some of its assets to a different company. This is not related to a problem their parent company in South Africa had. The workers are losing their jobs because the company needs to save money.

Tongaat Hulett Zimbabwe To Lay Off 1,000 Workers

Triangle Limited, one of Zimbabwe’s largest sugar producers, has announced plans to retrench an undisclosed number of workers, starting in February 2025.
In a recent statement, the company revealed it would implement a three-phase employee retrenchment program.
Triangle cited escalating operational costs, currency losses, and competition from low-cost, duty-free imported sugar as key factors behind this difficult decision.
The retrenchment process will begin in late February 2025 and conclude in August.
Triangle Managing Director, Tendai R. Masawi, explained that several challenging factors had led to the job cuts. Said Masawi:
<blockquote>
The current economic environment in Zimbabwe has presented unprecedented challenges for Triangle Limited over the past three years.
</blockquote>
He highlighted inflationary pressures, rising maintenance costs, and the inability to claim value-added tax (VAT) on inputs after sugar was exempted from VAT, as contributing to the company’s operational difficulties. Said Masawi:
<blockquote>
Escalating operational costs, particularly in areas such as fertilizer, fuel, maintenance costs, and imported goods/services, combined with inflationary pressures, currency losses, the inability to claim VAT on inputs after sugar was exempted from VAT, and competition from low-cost duty-free imported sugar, have severely impacted our ability to sustain current levels of operation.
Since 2022, we have seen profit margins decline significantly by 55%, manpower costs increasing by 133% as a proportion of revenue, and debt levels rising to unsustainable levels.
The company has been unable to generate positive cash flows from its operating activities for the past three years and has faced a very constrained working capital position since the implementation of the revised cane supply arrangements, which has necessitated constant trade-offs between what the business needs and what it can afford.
</blockquote>
Msawi said despite implementing numerous cost-reduction and revenue-enhancement initiatives, the business has failed to stabilise. Said the managing director:
<blockquote>
Despite implementing numerous cost-reduction and revenue-enhancement initiatives, these efforts have proven insufficient to stabilize the business.
This decision has been taken to protect the long-term sustainability of our organization and ensure that Triangle Limited continues to play its vital role in Zimbabwe’s economy and the livelihoods of communities in the Lowveld region.
</blockquote>
Triangle has pledged to provide fair severance packages and support programs for affected employees.
The company clarified that the decision is unrelated to the business rescue process of its South African shareholder or its acquisition by the Vision Consortium.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Triangle Limited, a big sugar company in Zimbabwe, is going to make some workers lose their jobs because it's having money problems. They say the costs of running the company are too high, and they can't compete with cheap sugar from other countries. The boss of Triangle says they tried to cut costs and make more money but it didn't work. They will start laying off workers in February 2025 and finish by August. The company will help the workers who lose their jobs. They say this decision is not because of another company buying them or saving them in South Africa.

Massive Retrenchment At Zimbabwe’s Sugar Giant Triangle Limited

Weeks after being granted a Deposit-Taking Microfinance Institution (DTMFI) license by the Reserve Bank of Zimbabwe (RBZ), Mukuru has officially launched the Mukuru Wallet in Zimbabwe.
The wallet offers a range of features, including the ability to send and receive money both domestically and internationally via mobile phones, secure fund storage, and fee-free cashouts for international transfers.
In a statement, Marc Carrie-Wilson, CEO of Send Money Home Zimbabwe, announced that Mukuru has established a network of 250 service points across both urban and rural areas in Zimbabwe. Said Carrie-Wilson:
<blockquote>
To avoid disappointing people who travel long distances to receive their remittances which they use for food, school fees and other essential services, we now have 250 of our own service points.
With a network stretching across urban and rural areas, we can reach more people than ever, providing constant cash availability and valuable digital solutions, such as the Mukuru Wallet, to underserved communities.
</blockquote>
Doug Tait-Knight, CEO of Mukuru Zimbabwe Financial Services, said the company is leveraging the wallet to capitalize on its strengths, particularly its robust network and advanced technology.
Mukuru has also formed partnerships with organizations such as COTTCO and the United Nations, through the World Food Programme and the United Nations Children’s Fund.
These collaborations will facilitate a variety of payments, including disbursements to farmers, payroll support for small businesses, and ensuring traceable aid distributions.
Kevin Nyakotyo, Mukuru’s enterprise sales manager for Zimbabwe and Zambia said:
<blockquote>
Our success in the end-user sector has enabled us to set in motion plans to enter the business sector. Whether it is for tobacco or cotton, payments made to farmers are often large sums of money.
The Mukuru Wallet will make receiving these large sums of money far safer because beneficiaries won’t need to draw all their cash at the same time.
We have a mandate to educate the market based on trends we see, and with this wallet, we are reaching out to both organisations and individuals and giving them peace of mind to know their funds will be safe and can be collected at any time.
They can withdraw an amount that suits them with full confidence the cash will be available wherever they are, whenever they need it.
</blockquote>
The platform is designed to improve safety and convenience by eliminating the need for individuals to carry large sums of cash.
Users can easily perform transactions, including paying for electricity, purchasing airtime, settling DSTV bills, and covering insurance payments directly through the wallet.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Mukuru has a new mobile wallet in Zimbabwe to send money both locally and internationally. They have 250 service points across the country for easy access. The wallet can also be used for payments like electricity and insurance. The company is working with organizations to help with payments to farmers and business support. The wallet aims to keep funds safe and easy to access, without needing to carry a lot of cash. Mukuru is also looking to expand into the business sector with their services.

Mukuru Expands Financial Services In Zimbabwe With New Mobile Wallet

Images of empty shelves at OK Zimbabwe Limited stores circulating on social media recently sparked rumours of the company’s imminent collapse.
However, in a statement released on January 10, 2025, Group Company Secretary Margaret Munyuru dismissed these claims as false.
While acknowledging some product supply challenges during the recent festive season, Munyuru affirmed that OK Zimbabwe stores remain open and operational.
She said the company is actively working with suppliers and key stakeholders, including industry associations and regulators, to restore normal supply levels and stabilise the trading environment. Read the Statement by OK Zimbabwe Limited below:
<blockquote>
It has come to our attention that there has been a surge of frenzied and speculative commentary circulating on social media platforms regarding the viability and going concern status of OK Zimbabwe Limited (“the Company”).
We assure all stakeholders, including customers, shareholders, employees, and partners, that our stores are open for trading.
Although the Company faced intermittent product supply challenges during the festive period, we continue to serve our loyal customers and contribute to the economic growth and development of Zimbabwe.
We are grateful to our supplier partners, bankers and other stakeholders for their support at a time when the Company, as well as most of the formal retail sector, has been adversely impacted by a volatile operating environment.
We are actively engaged with our suppliers, and key stakeholders, including industry associations and regulators, to restore supplies to normal levels whilst working on solutions that stabilize the trading environment.
We are committed to transparency and open communication with all stakeholders. Our corporate pledge is to continue to make happiness tangible by planting smiles on our employees, customers, suppliers, shareholders and the communities we operate in.
Should there be any official updates or announcements regarding the Company’s financial status, they will be communicated through the appropriate channels in a timely and responsible manner.
We appreciate the continued support and trust of our stakeholders and look forward to serving you with excellence as always.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

OK Zimbabwe denied rumors of collapse after images of empty shelves in their stores were circulated on social media. They said they are still open and working to fix supply issues. The company thanked their suppliers and stakeholders for support during tough times and promised to communicate any updates about their finances. They are committed to serving their customers and community with excellence. The company urged everyone to not believe false rumors and trust that they are still operational.

OK Zimbabwe Rejects Collapse Rumours

The National Consumer Rights Association (NACORA) has criticised the Zimbabwe Revenue Authority (ZIMRA) for cracking down on businesses suspected of selling smuggled goods during the festive season.
NACORA argues that the government should focus on creating a supportive environment for businesses to become formal.
This crackdown has caused losses for many liquor stores, tuckshops, and secondhand clothing shops, which usually expect high profits during the festive season due to the heavy fines imposed.
NACORA’s coordinator, Effie Ncube, told <a href="https://www.newsday.co.zw/local-news/article/200036679/zimra-raids-on-traders-rile-consumers">NewsDay</a> that the small business sector is essential in reducing poverty.
He argued that the government should therefore create a supportive environment for these businesses to thrive. Said Ncube:
<blockquote>
While taxes must be paid and operations conducted within the law, the State should alleviate the tax burden, making it easier for businesses to operate legally and take into account the views of businesses.
Currently, there are too many roadblocks for businesses wanting to regularise their operations. This includes challenging registration requirements and a lack of affordable supplies in Zimbabwe.
This situation prompts many small businesses to look to Zambia, Botswana, Mozambique and South Africa for affordable supplies.
Unfortunately, steep import duties are encouraging smuggling, which takes away a key source of income for the State.
A win-win arrangement is urgently required. The hammer is not the best solution.
</blockquote>
Coustine Ngwenya, chairperson of the Bulawayo Chamber of Small to Medium Enterprises (SMEs), said that although businesses should formalise their operations, it was unfortunate that ZIMRA targeted them during their busiest days. Said Ngwenya:
<blockquote>
What happened was very unfortunate, we always encourage all SMEs to formalise their operations and be compliant with all statutory requirements so that their operations are above board. This will minimise the inconveniences like what happened.
We appreciate that ZIMRA was doing its mandatory obligations, however, we feel they were a bit harsh as the exercise was carried out during the busy business days.
</blockquote>
Dumisani Ncube, a member of the Bulawayo, Matabeleland North and Matabeleland South Micro, Small and Medium Enterprises Advisory Council, has called on all SMEs in Bulawayo to join the chamber. 
He said that a unified voice is essential in ongoing engagements with ZIMRA. Said Ncube:
<blockquote>
We have requested tax exemption for those registered with SMEs, we are currently engaging the government and we are hoping for a positive outcome.
We are also negotiating for a similar arrangement like the Confederation of Zimbabwe Industries (CZI) and other big organisations for us to have the same benefits to ensure survival of the SMEs, above all it is essential that you pay your dues in form of taxes.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

A group called NACORA is mad at ZIMRA for punishing businesses during the holidays. They think the government should help businesses become official. The crackdown hurt many shops that sell alcohol, snacks, and secondhand clothes. NACORA thinks small businesses are important to fight poverty. They want the government to make it easier for businesses to follow the rules. The chairperson of a small business group in Bulawayo agrees. They want ZIMRA to be nicer and help small businesses succeed. Another council member also wants small businesses to join together to talk to the government. They want tax exemptions and help like big companies get.

Consumer Rights Group Condemns ZIMRA's Festive Season Crackdown On Businesses

Zimbabwean companies have been advised to brace for further exchange-rate volatility this year following the shock devaluation of the country’s gold-backed currency, ZiG, in September 2024, reported <a href="https://www.bnnbloomberg.ca/investing/2025/01/07/zimbabwe-zig-set-for-more-volatility-after-43-plunge-business-body-says/">Bloomberg</a>.
ZiG, short for Zimbabwe Gold, is the nation’s sixth attempt at a stable currency since 2009. On September 27, it fell 43% against the US dollar to narrow the gap between the official and parallel-market rates.
This devaluation has impacted consumers’ disposable incomes, driven inflation, and squeezed business profits.
OK Zimbabwe Ltd, the country’s largest retailer, said in December that the devaluation “necessitated a reevaluation” of working capital and risk-management strategies.
The Zimbabwe National Chamber of Commerce’s Chief Executive Officer, Christopher Mugaga, said that exchange-rate volatility remains a concern despite the devaluation. He added:
<blockquote>
After the devaluation, balance sheets have been eroded and most executives are worried. To plan using the local currency is to plan to fail.
</blockquote>
Shelton Sibanda, Chief Investment Officer at Imara Asset Management, which oversees US$100 million in assets, anticipates that companies will reduce their ZiG holdings as a protective measure.
In an interview with Bloomberg by phone from Harare, Sibanda said “The velocity, that is the speed of using ZiG will increase”, adding. “No one will want to keep any ZiG.”
Mugaga said challenges that are likely to affect companies’ profits this year include power shortages lasting up to 18 hours a day.
Moreover, businesses are contending with informal traders for US dollar revenues, exacerbated by stringent local-currency pricing controls imposed by the authorities. Said Mugaga:
<blockquote>
The power issue will remain for the first half of the year as it’s linked closely to the hydropower situation in Kariba.
</blockquote>
An El Niño-induced drought has significantly reduced water levels at the dam, one of Zimbabwe’s primary power sources, exacerbating the country’s energy crisis.
This situation has further strained businesses, which are not optimistic about an improvement in trading conditions soon. Maxen Karombo, CEO of OK Zimbabwe, said:
<blockquote>
The operating environment is expected to remain bearish driven by exchange-rate and inflation dynamics.
</blockquote>
The ZiG traded little changed on Monday at 25.83 per dollar on the official market, according to data on the Reserve Bank of Zimbabwe’s (RBZ) website.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwean companies are told to get ready for more changes in money values this year. The country's gold-backed money, ZiG, dropped a lot in September 2024. This made prices go up and made businesses lose money. The biggest store, OK Zimbabwe Ltd, had to rethink how to manage their money because of this. More problems, like not having enough electricity, are making things hard for businesses. People are worried that things won't get better soon. Experts predict that companies will stop using ZiG to protect themselves. The value of ZiG stayed the same recently, at 25.83 per US dollar.

Brace For More Exchange-Rate Swings, Zimbabwean Firms Told

The government has pledged to intensify a multi-agency operation targeting small businesses and cross-border transport operators involved in smuggling and unethical business practices.
This ongoing blitz aims to curb the smuggling of illicit goods such as basic grocery items and second-hand clothes.
As part of the measures to combat smuggling, 24-hour roadblocks have been set up along highways leading to major cities.
These roadblocks involve impromptu inspections and demands for documents proving that stock was imported legally.
The operation will also target businesses that index prices to parallel market rates and sell counterfeit, underweight, or unlabelled goods.
The Ministry of Industry and Commerce is leading the task force, working with the Zimbabwe Revenue Authority, the Zimbabwe Republic Police, the Reserve Bank of Zimbabwe, the Consumer Protection Commission, and other law enforcement agencies.
In an interview with <a href="https://www.sundaymail.co.zw/govt-to-intensify-anti-smuggling-operation-this-year">The Sunday Mail</a>, the Permanent Secretary in the Ministry of Industry and Commerce, Thomas Utete Wushe, said:
<blockquote>
The operation is a live and permanent exercise that is here to stay. When the operation was intensified, some new measures were introduced, and these are here to stay.
</blockquote>
In a separate interview with The Sunday Mail, Finance, Economic Development and Investment Promotion Minister Mthuli Ncube said:
<blockquote>
Smuggling introduces unfair competition by allowing goods to bypass duties and taxes, effectively disadvantaging law-abiding and compliant local businesses. By cracking down on these activities, we ensure a level playing field for local enterprises to thrive.
The smuggled goods deprive the nation of the much-needed revenue that could otherwise be directed towards critical developmental projects, such as infrastructure, healthcare and education. This operation is a step towards closing these revenue leakages.
The operation thus sends a strong message about the Government’s zero tolerance for smuggling. It underscores our commitment to enforcing compliance with customs and tax laws, which is essential for the efficient functioning of the economy.
This operation is part of the multi-tier border-enforcement strategy to bolster border security and mitigate against illicit trade, thereby protecting the integrity of our trade system.
Unregulated inflows of smuggled goods threaten the survival of local industries, which provide jobs for many Zimbabweans.
Tackling smuggling ensures these jobs are protected, supporting livelihoods and reducing unemployment.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

The government is working hard to stop people from sneaking things into the country and doing business in a bad way. They are checking small businesses and trucks that cross the borders. They want to make sure everyone follows the rules and doesn't cheat by selling fake or illegal things. The government wants to protect local businesses, make sure everyone pays their taxes, and stop criminals from making money illegally. This will help the country get more money to build better roads, hospitals, and schools. By stopping smuggling, more jobs will be available for people in Zimbabwe.

Govt Vows To Intensify Crackdown On Smuggling And Unethical Business Practices

The City of Harare has announced a significant reduction in shop license fees. The move is intended to alleviate the financial burden on businesses and stimulate growth in a sector that contributes 60% of Zimbabwe’s GDP, reported Zimbabwe Economic Review.
The council said the new fee structure introduces flexibility, offering various payment options to suit different business needs.
Businesses can now pay license fees monthly, quarterly, biannually, or annually.
Additionally, the fees will now be categorized based on the size of the business: small businesses will pay US$400 annually, medium businesses will pay US$600 annually, and large businesses will pay US$800 annually.
The local authority explained that this reduction responds to widespread complaints from SMEs regarding high fees and the rigid non-transferability of licenses.
By lessening these costs, Harare aims to encourage the growth of SMEs, which is essential for economic stability, especially given the large informal economy resulting from company closures, currency instability, and inflation.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

The Harare City Council has lowered shop license fees to help businesses grow. The new fee structure allows businesses to pay monthly, quarterly, biannually, or annually. Small businesses pay $400 per year, medium businesses pay $600, and large businesses pay $800. This change aims to support small and medium-sized businesses (SMEs) that have complained about high fees. By reducing costs, Harare hopes to help SMEs, which are important for the economy, especially with many companies closing and inflation in Zimbabwe.

Harare City Council Cuts Shop Licence Fees

Siqokoqela Mphoko, the son of the late former Vice President Phelekezela Mphoko, claimed that his family turned around Raj Modi’s unprofitable shops and expanded them to 35 outlets in four years.
Raj Modi, a Member of Parliament for Bulawayo South constituency and Deputy Minister of Industry and Commerce, recently took over control of Choppies Zimbabwe through his retail chain, Sai Mart.
The takeover of Choppies Zimbabwe outlets by Modi followed Choppies Enterprises Limited’s announcement to exit the Zimbabwean market.
When Choppies announced its plans to sell its Zimbabwean operations on November 29, 2024, it had 30 grocery stores nationwide under its subsidiary, Nanavac (Pty) Ltd, trading as Choppies Zimbabwe4.
Posting on X (formerly Twitter), Mphoko, who Mphoko, has been involved in legal disputes with Choppies over shareholding issues, claimed that the retail chain collapsed after he left in 2019. He said:
<blockquote>
You can try and re-write Choppies history in Zimbabwe. You can never take away what I did at Choppies even if you tried. Modi sold his assets to us in 2013. We took over his very unprofitable shops. Grew them to 35 in 4 years. I left in 2019. It failed to hold, it collapsed.
</blockquote>
Choppies entered the Zimbabwean market in 2013 by acquiring several Spar outlets. It expanded further in 2014 by establishing a distribution centre to enhance its supply chain.
Meanwhile, Choppies Zimbabwe, recently officially announced the transfer of its operations to Sai Mart, effective January 1.
Modi, who has been operating six branches in Bulawayo, took over Choppies’ operations across the country.
In a statement, Choppies assured stakeholders that the transition would be seamless, with no job losses for employees.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Siqokoqela Mphoko said he made Choppies shops profitable in 4 years. Raj Modi took over Choppies in Zimbabwe from Choppies Enterprises Limited. Choppies came to Zimbabwe in 2013 and grew to 30 stores by 2019. Mphoko claimed that Choppies failed after he left in 2019. Modi now runs Choppies stores across Zimbabwe. The transition to Sai Mart will not result in job losses.

Mphoko Claims He Transformed Choppies Into A Profitable Business In Four Years

Zimbabwe’s miners delivered a record 36.48 tonnes of gold in 2024, marking a 21% increase compared to 2023 and surpassing the industry target of 35 tonnes, despite rising costs and policy concerns.
<a href="https://newzwire.live/zimbabwes-gold-miners-defy-rising-costs-and-policy-concerns-to-deliver-record-production-in-2024/">newZWire</a> reported that the 2024 gold production exceeded the previous record of 35.6 tonnes set in 2022.
The increase was driven by a 27% rise in deliveries from small-scale miners and an 11.4% growth from larger miners, according to figures released by Fidelity, the country’s official gold buyer and refiner.
Sales from smaller miners had declined by 23% last year due to delayed payments from Fidelity. In 2024, faster payments and the mid-year removal of VAT on gold sales encouraged producers to sell more gold to Fidelity.
Dallaglio, the gold arm of Padenga, produced 2,025kg in the nine months up to September, reflecting a 22% increase from the same period in 2022.
The company benefited from the US$86 million invested into mining over the past five years. Most of the capital expenditure last year was allocated to Pickstone, which is transitioning from an open-pit mine to an underground operation to boost production.
Caledonia produced 1,610kg up to September and has projected a full-year output of around 2,200kg for 2024.
Kuvimba Mining House, the country’s largest producer, earlier projected a production of 3,500kg for 2024.
Gold miners experienced favourable market conditions, with gold prices rising by 27% in 2024. However, rising costs and economic policy challenges have constrained their operations.
Energy costs remain a significant concern for miners, according to a survey by the Chamber of Mines late last year. Miners pay an average of USc14.21/KWh, with a peak tariff of approximately USc19/KWh.
During power cuts, miners resort to using diesel power, which has an implied tariff of over USc30/KWh. The mining industry is estimated to lose up to 10% of potential output due to power outages.
Miners receive 75% of their export earnings in USD and the remaining 25% in ZiG. The rapid depreciation of the local currency erodes the value of the surrender portion of their earnings by over 50%, effectively imposing a 12% tax on exporters’ gross proceeds.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

In 2024, Zimbabwe broke a record by producing 36.48 tonnes of gold, which was more than the target and previous years. Small-scale miners contributed a lot to this increase. One company, Dallaglio, made a lot of gold with the help of investments. Another company, Caledonia, is expected to produce even more gold. Even though gold prices went up, miners are facing challenges like high energy costs and economic issues. Miners also lose money because of the depreciation of the local currency. Despite these challenges, Zimbabwe's gold production reached a record high in 2024.

Zimbabwe Hits Record Gold Production Of 36.48 Tonnes In 2024

The Government has officially implemented the Fast Food Tax as part of the 2025 National Budget revenue measures, reported <a href="https://openparly.com/pizza-with-added-tax/">OpenParly</a>.
This initiative, designed to boost government revenue, took effect on January 1, 2025, following President Emmerson Mnangagwa’s signing of the Finance (2025) Bill into law.
Finance Minister Mthuli Ncube confirmed that a 1% tax will be levied on the sale value of specified fast foods, as detailed in Section 12F of the Value Added Tax Act.
The tax applies to fast foods sold in pre-packaged form or prepared on-site for immediate consumption, whether on or off the premises.
Under the Finance (2025) Act, the fast food tax encompasses:
<ul>
<li>Pizza</li>
<li>Burgers</li>
<li>Hot Dogs</li>
<li>Shawarma</li>
<li>Tacos</li>
<li>French Fries</li>
<li>Chicken</li>
<li>Doughnuts</li>
<li>Other foods of a similar nature</li>
</ul>
Fast food businesses throughout Zimbabwe have already raised their prices to accommodate the new tax.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

The government has started a tax on fast food to make more money. It started on January 1, 2025. The tax is 1% on the price of specific fast foods like pizza, burgers, and hot dogs. The tax applies to both packaged and fresh fast food for eating there or taking away. Fast food places in Zimbabwe have raised their prices because of this new tax.

Fast Food Tax Comes Into Effect

The Zimbabwe Revenue Authority (ZIMRA) at Beitbridge recently seized a consignment of alcoholic beverages worth US$84,741.58, which had been sold to a bidder at an auction three days earlier.
As reported by <a href="https://www.newsday.co.zw/local-news/article/200036524/zimra-auctions-off-goods-seizes-them">NewsDay</a>, the successful bidder, who bought the whiskies and brandy, is now stuck outside the Beitbridge Border Post warehouse where the goods were stored and are considering abandoning the deal.
Ms Chiyangwa, the warehouse manager who led the seizure, was unavailable for comment, saying she was in a meeting when asked about the situation.
A representative of Liquor City, the bidder, claimed that after paying for the liquor, they arranged for transport and storage, planning to transport the goods to Harare.
However, when their logistics were in place, ZIMRA officials arrived in three vehicles and ordered the goods back to the border, despite the buyer presenting receipts for the auction purchase. Said the representative:
<blockquote>
We are contemplating returning the liquor and get refunded because in the movement and off-loading, there were some breakages and thefts. We did not expect this for goods bought from them.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

ZIMRA auctioned off alcohol worth a lot of money but then took it back from the buyer. The buyer paid and tried to transport it to another city, but ZIMRA came and took it away. The buyer is now thinking of returning the alcohol and getting their money back because some of it was damaged and stolen during the process. The ZIMRA warehouse manager didn't comment on the situation. The buyer is not happy with what happened and wants a refund.

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