Former Chivi South MP Killer Zivhu (ZANU PF) has derided the country’s gold-backed currency, the ZiG, claiming it has caused significant problems for Zimbabweans due to its rapid devaluation.
In recent days, social media platforms have been flooded with price stickers from supermarkets, revealing sharp increases in the cost of basic grocery items since the currency’s launch in April 2024.
For example, a 2-litre bottle of cooking oil, initially priced at around ZiG42, now exceeds ZiG70 in some stores, despite the official exchange rate changing by less than ZiG1.
These price hikes suggest that retailers are relying on the street rate, which is reportedly above US$1: ZiG20.
In a post on X, Zivhu mocked the ZiG, comparing it to petrol mixed with ethanol, which some motorists claim is of poor quality and lacks durability. Said Zivhu:
<blockquote>
Pakuda 50kg ye headache tablets kuti ukwanise kushandisa ZIG, ukarega unofa ne BP, ukapinda mu Shop ne ZIG rinopera fast kunge ethanol yatinotengeserwa tichinzi petrol, zvinhu zvacho masaramusi chete. (You need 50kg of headache tablets to be able to use ZIG, if you stop, you’ll die from BP. If you enter the shop with ZIG, it disappears fast like the ethanol sold to motorists as petrol, the stuff is just rubbish)
</blockquote>
Zivhu’s sentiments were backed by an economist, Professor Gift Mugano, who tagged government apologist Mmatigari in his comment. Mmatigari responded:
<blockquote>
So Killer Zivhu is your think tank on currencies? You are disappointing.
</blockquote>
Mugano then said Zivhu’s comments should not be ignored as he is one of the most progressive Zimbabweans”, who lives with the people and is a consumer. Wrote Mugano:
<blockquote>
[Killer Zivhu] is one of the most progressive Zimbabwean I admire. He is real. He lives with the people. He is a consumer. In this particular case of the ZiG, he gave his own experience as a consumer. If you don’t respect him/like him, that is your problem.
Zvenyu zvekungohumana izvo and carry venomous mouth everywhere hazvivaki nyika.
I submitted grounded solutions on what must be done to make ZiG succeed (check my previous posts which I posted in April). What did you do, you led a battalion of vasvasvangi on me. After I noticed that you rejected my well thought advice, I told you that ZiG will not survive.
Here we are. How is the ZiG performing? It’s a dismal performance. Companies are closing and consumers are suffering.
We have gone through 27 years of currency crisis, that is, from 14 November 1997 (the black Friday when the Zimbabwe dollar crashed). Over these years, you haven’t learnt anything as far as the drivers of the currency crisis are concerned?
If not please learn to engage in a constructive and meaningful conversation so that you can learn from experts in the field tichivaka nyika. Zimbabwe is for us all.
There are no designated shops/hospitals for the ruling party supporters nor opposition supporters. We go into the same shops/hospitals tichisvasvangwa ne economy tese.
Learn or perish
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Killer Zivhu, a former MP, criticized the new ZiG currency in Zimbabwe, saying it is causing prices to go up too quickly. He compared it to bad petrol that disappears fast. An economist named Professor Gift Mugano agreed with Zivhu and said his experience as a consumer should be taken seriously. He also urged people to learn from experts and have constructive conversations about the currency. Many people are unhappy with the ZiG currency and how it is affecting the economy and people's lives.

50kg Of Pills Needed To Cure Headache Caused By ZiG - Killer Zivhu

UK-based Zimbabwean lawyer, Brighton Mutebuka, says former Citizens’ Coalition for Change (CCC) leader Nelson Chamisa has been vindicated for pursuing a strategy of “strategic ambiguity.”
This approach involved keeping the party’s structure and leadership organisation deliberately vague and amorphous.
Chamisa aimed to make it difficult for opponents to infiltrate the party or target specific individuals, and to protect the CCC from internal and external threats.
By not having a clear leadership hierarchy or a formal constitution, Chamisa sought to obscure the party’s inner workings and make it challenging for adversaries to fully understand the CCC’s operations.
Chamisa’s critics, however, argued that this strategy allowed him to maintain personal control over the party, leading to a lack of transparency and accountability.
The emergence of Sengezo Tshabangu, who claimed to be the party’s interim secretary-general, and the subsequent recall of dozens of CCC Members of Parliament and Councillors, have been blamed on the “strategic ambiguity” approach.
However, Mutebuka believes that this strategy exposed senior party figures who were allegedly undermining Chamisa and working for the ruling ZANU PF party. Mutebuka posted on X:
<blockquote>
Strategic Ambiguity Revisited
1. Without the much-maligned “Strategic Ambiguity” by Nelson Chamisa’s critics, your Mafumes, Ncubes, Hwendes and others would have held legitimate and formal posts.
2. They would have declared what on paper would have appeared like a legitimate &amp; bona fide split of CCC.
3. Such a split would have appeared credible, meaning some opposition supporters would have genuinely believed them &amp; the grievances that they would have identified as the cause of the split.
4. At this point in time, Chamisa has now been emphatically vindicated.
5. That’s because, it’s now clear even to his worst critics that he had been surrounded by regime infiltrators, collaborators &amp; apologists hitherto masquerading as genuine opposition politicians.
6. The strategy has acted as a political sieve, by exposing the political mercenaries in his midst.
7. That has in turn given him the best possible chance to undertake a successful political reset by rebuilding his political spaceship anew free from political contamination.
8. He is now clearly free from some of the political junk he inconveniently inherited from Alliance Project.
9. As we have now discovered, that “Orbital Junk” was outwardly laden with name &amp; brand recognition while inwardly hollow &amp; conspiratorial Brutus like.
10. The infiltration won’t stop, so strong &amp; effective round the clock measures have to be taken to address this scourge on an ongoing basis.
11. Chamisa’s reputation suffered immensely as Strategic Ambiguity was roundly condemned from a democracy &amp; good governance standpoint.
12. He lost the narrative battle but won the war &amp; had the last laugh. Now he can rebuild, incorporating the lessons he has learnt, balancing between democratic &amp; Strategic imperatives!
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Nelson Chamisa was criticized for not having clear leadership in his party, but now people see it was a good plan. By keeping things secret, he protected his party from enemies. Some members claimed to have leadership roles, causing chaos in the party. But this exposed those who were not loyal. Chamisa's reputation suffered, but in the end, he won. Now, he can start fresh and be smarter about who he trusts. It's important for him to keep out people who don't really support his party.

Chamisa's "Strategic Ambiguity" Approach Paid Off - Mutebuka

Harare mayor, Councillor Jacob Mafume, has been criticised for attending a ZANU PF indoctrination programme at the party’s Herbert Chitepo School of Ideology.
Mafume is among a group of mayors, chairpersons, councillors, and staff from 92 local authorities across the country who attended the two-day training session at the Rainbow Towers Hotel in Harare.
The training was conducted by Munyaradzi Machacha, the principal of the Herbert Chitepo School of Ideology and ZANU PF’s National Political Commissar, on behalf of the Ministry of Local Government and Public Works.
However, the mayors of Bulawayo, David Coltart, and his deputy, Edwin Ndlovu, did not attend the training. Instead, the city’s Town Clerk and Finance Director attended in their place.
Former CCC MP Job Sikhala, in a post on X (formerly Twitter), suggested that the opposition councillors attending the training may be motivated by greed. He wrote:
<blockquote>
There are more important things in life than money and power. No amount of silver and gold should persuade you to sacrifice your values and principles to be dragged to the Herbert Chitepo School of Ideology, to be brainwashed with some redundant ideology.
The ideology that is anti-people, promotion of the persecution of those in disagreement with that moribund ideology and intolerance of opponents of the establishment!
</blockquote>
Hopewell Chin’ono, a prominent government critic, was more blunt in his assessment of Mafume’s attendance at the ZANU PF ideological training.
Chin’ono accused Mafume of “treachery” saying he is now serving his own interests and those of the ruling ZANU PF party. Said Chin’ono:
<blockquote>
Harareans rejected ZANU PF in toto, but here you are, Mayor, using taxpayers’ money to attend an ideological indoctrination workshop at a ZANU PF indoctrination school!
I wouldn’t blame anyone who argues that you are no longer serving the interests of the residents of Harare, you are now serving your own interests and those of ZANU PF!
I can’t imagine that you would leave your office for the whole day to go to a ZANU PF indoctrination school when your residents have no clean drinking water!
It is just irresponsible for any opposition-elected mayor to do such a reckless thing! You have insulted the residents of Harare.
They are powerless because everything in Zimbabwe is captured, but at this point, it is fair to say you don’t represent them anymore!
… History will never forgive you for this treachery Jacob, you have betrayed the residents of Harare.
Our country is broken both politically and economically because of ZANU PF, yet you see it fit to not only go to a ZANU PF indoctrination school but to also use our money as Harareans attending this rubbish!
If Harareans had a way to remove you they would, but of course, ZANUPF courts will protect you, I am disappointed in not only your irresponsible actions, but in you too!
You have undermined the democratic process by participating in a ZANUPF indoctrination workshop while serving as an opposition mayor, you have “legitimised” the ruling party’s authoritarian tactics.
Long live David Coltart, the Mayor of Bulawayo, for rejecting this nonsense!
</blockquote>
Mafume is a member of the opposition Citizens’ Coalition for Change (CCC) and was re-elected as the mayor of Harare following the 2023 general elections.
His re-election came after Sengezo Tshabangu controversially recalled his two predecessors, Ian Makone and Lovejoy Chitengu.
Tshabangu, known for unilaterally recalling scores of CCC MPs and Councillors, defended the mandatory two-day ideological training, describing it as a positive initiative aimed at building the capacity of councillors and aligning local governance with national policies.
The Herbert Chitepo School of Ideology is named after Herbert Chitepo, a prominent nationalist and former chairperson of the Zimbabwe African National Union (ZANU).
The school focuses on topics such as patriotism, national security, and the history of Zimbabwe’s liberation struggle.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Harare mayor Jacob Mafume went to ZANU PF training, some people are not happy. They say he is betraying the opposition. Other mayors did not go. Critics say Mafume is serving his own interests, not the people. They think it's wrong for him to go to ZANU PF training. But some say the training is good for learning about important things. The training is about the history of Zimbabwe and being loyal to the country. Some people are mad at Mafume for going. They think he should focus on helping the people of Harare instead.

Mafume Slammed For Attending ZANU PF Ideological Training

South African-based ZANU PF supporter Kudzai Mutisi has called on President Emmerson Mnangagwa to dismiss Minister of Finance, Economic Development and Investment Promotion Mthuli Ncube, along with the Ministry’s permanent secretary George Guvamatanga and Reserve Bank of Zimbabwe (RBZ) Governor John Mushavayanhu, for allegedly undermining the new ZiG currency.
Launched in April 2024, the ZiG was presented by the government as a “structured currency” backed by 2.5 tonnes of gold and other minerals, including diamonds. However, the value of the ZiG has steadily declined on the parallel market due to ongoing foreign currency shortages.
In a post on X, Mutisi accused the Treasury and Central Bank leaders of being “the biggest saboteurs of ZiG,” labelling them as “lazy and indecisive.” Said Mutisi:
<blockquote>
The biggest saboteurs of ZiG are at the RBZ and Ministry of Finance, very lazy and indecisive folks… 5 months after introducing ZiG, they have done NOTHING to make it the preferred currency.
They FAILED to do the basics, it’s not enough to say it’s “gold backed”, in fact, that’s UNNECESSARY. Simple things could give ZiG a huge boost:
1. Avail larger denominations: Folks like Persistence Gwanyanya make ridiculous arguments that larger denominations create inflation YET the ZWL collapsed without them, yet there are US$100 notes circulating in Zim… Without enough ZiG cash, the US$ fills that lacuna and that’s foolishly promoting US$ use. Avail ENOUGH CASH!
2. Mthuli Ncube, in his lack of wisdom, continues to tax electronic transactions. Since there is no enough ZiG cash in circulation, people escape these punitive taxes by using US$ cash. The IMTT tax should be removed and RBZ should slash bank charges. That will be an effective way of promoting the ZiG.
3. There are still lots of USD ONLY transactions, and there is no desire to gradually reduce them… 5 months after the introduction of ZiG, there has been a gradual increase in USD-only transactions.
4. Guvamatanga and Ncube aren’t keen on demanding taxes in ZiG…. Companies have no reason to accept ZiG or look for ZiG since Treasury is more interested in collecting USD taxes…
</blockquote>
Mutisi urged Mnangagwa to appoint competent individuals at the RBZ and the Ministry of Finance, stating, “… you can’t have PhD holders who fail to do basic things, those are toxic people undermining the country for their own personal interests.”
He contended that Ncube, Guvamatanga, and Mushayavanhu are aware of the necessary steps to promote the use of ZiG but are unwilling to act if it threatens their interests.

A ZANU PF supporter wants President Mnangagwa to fire three top officials for not supporting the ZiG currency backed by gold. The supporter thinks they are lazy and indecisive. He says they are not doing enough to make ZiG the main currency. He wants larger ZiG notes, no taxes on electronic transactions, and companies to pay taxes in ZiG. He believes the officials know how to make ZiG work but choose not to. The supporter wants Mnangagwa to replace them with competent people who care about the country.

ZANU PF Activist Urges Mnangagwa To Fire Mthuli, Mushayavanhu And Guvamatanga For Undermining ZiG

UK-based Zimbabwean lawyer Brighton Mutebuka has come to the defence of former CCC leader Nelson Chamisa, who has faced significant criticism on social media in recent days.
High-profile figures, including journalist Hopewell Chin’ono and academic Ibbo Mandaza, have suggested that Chamisa might have been bribed by President Emmerson Mnangagwa.
Together with self-exiled former ZANU PF Politburo member Savior Kasukuwere’s ally, Ali Naka, they have called for Chamisa to publicly announce his retirement from politics to make way for another opposition candidate, even threatening to “expose” him.
In a post on X, Mutebuka claimed that the allegations against Chamisa originated from his former close ally, Chalton Hwende. Wrote Mutebuka:
<blockquote>
SADC Summit and Beyond – The Smear Campaign To Delegitimise Nelson Chamisa
1. As previously stated, I have tried to get to the bottom of the rumours that were swirling on X yesterday suggesting that Chamisa’s perceived inaction in the aftermath of the stolen August 2023 elections was due to being “bought” by the regime.
2. The innuendos relating to this were mainly circulated by Victor, the X character known as Ali Naka &amp; discredited journalist, Hopewell Chin’ono amongst others, on the X accounts.
3. The insinuation was that they had explosive evidence at the ready which confirmed that Chamisa had corruptly accepted bribes from the regime &amp; thus been compromised so as to literally upend the democratic struggle for the benefit the regime.
4. The good Prof Ibbo Mandaza was also, unfortunately, a victim of the sophisticated Russian-style disinformation campaign timed to perfection – in the immediate aftermath of ED’s coronation at the SADC Summit in Harare – which was a painful blow to swallow to the opposition movement.
5. The well-coordinated campaign was very effective in making the saga trend. In the end, I resolved to get to the bottom of it by seeking to establish the source of the campaign &amp; the motive behind it.
What Emerged From My Research – Source Of The Rumour(s)
a. At least 5 well-placed sources identified Chalton Hwende as the source of the allegations.
b. The sources further stated that Hwende did not only level accusations of financial impropriety against Chamisa.
c. I will not address the other allegation that was made, of a personal nature and extremely hurtful.
d. The sources stated that the allegations were shared with Ali Naka and discredited journalist Hopewell Chin’ono, amongst others.
e. It was confirmed to me that there was no iota of evidence to support the long-shot allegation that a local Law Firm had secretly stored the “stash.”
f. The sources stated that there are current behind-the-scenes manoeuvres at forging “unity” &amp; returning to the banner of the old MDC which has sucked in Mwonzora, Prince Dubeko Sibanda, Hwende &amp; others – with all of them being united by the idea that Chamisa is the main obstacle – which would then open grounds for an Détente with ED’s regime.
g. The sources further stated that Hwende &amp; others are conspiring to ensure that Nelson Chamisa never appears on Zimbabwean ballot papers again – including helping to cause his arrest by the regime if was felt necessary.
h. An alleged Nigerian kingpin who Hopewell &amp; Hwende allegedly said had paid both Hwende &amp; Chamisa, a certain Peters – who is allegedly ED’s runner apparently fell out with Hwende sometime in 2021 &amp; had actually been Hwende’s business partner.
i. It was stated that the scope &amp; breadth of Hopewell’s motivations are many and varied, including the possibility of entertaining launching his own solo political career.
j. Additionally, in addition to these 5 sources – over the past 2 years other sources have disclosed that Hopewell has got an exceptionally close relationship with the First Lady – who is a former intelligence operative herself.
Motives Behind The Allegations
1. Some of the sources stated that they believe that the strategy was to wage a disinformation campaign by whipping opposition supporters into an anti-Chamisa frenzy &amp; delegitimising him as an opposition stalwart.
2. Craft a convincing narrative to account for the implosion in CCC which shifts the blame away from Hwende &amp; others – which is the current situation – to Chamisa.
3. To emphatically destroy Chamisa as a political force for good, through severely denting his image and integrity – and creating a compelling &amp; corrupt link between the inaction after the elections &amp; the reason for that inaction.
4. For Hwende &amp; his cabal to personally cleanse themselves of the stigma surrounding their current dalliances with the regime and the fallout with Chamisa amongst opposition supporters.
5. It was said that such a development would, in the eyes of the plotters, engineer a soft landing for them to be welcomed by rank &amp; file opposition supporters across the country – with it being notable that none have so far had the temerity to undertake such rallies.
6. It was stated that the intention was to pave the way, so to speak – banking on the fact that some opposition supporters could be gullible.
Key Points To Note
i. It is significant that none of the shady characters in the form of the notorious Russian-style social media agitator 
Ali Naka &amp; Hopewell Chin’ono – who is more of a political activist than a Journalist, has put forward any explicit or compelling evidence corroborating their sensational &amp; deeply irresponsible allegations.
ii. All they have done is deploy blackmail via threatening to disclose the information – a classic tool usually employed by professional character assassins/mandarins or Czars.
iii. Such a strategy is deadly when no such evidence exists. Intelligence assets are also prone to employing it – as the tantalising threat will be more appealing to the public, and is thus attention-grabbing.
iv. This will allow it to gain credence &amp; circulation via amplification up to the point that it will appear authentic &amp; thus become agenda-shaping.
v. In the current situation, the combined X platforms of Hopewell &amp; Victor / aka Ali Naka have got close to a million followers across the world.
vi. Working the X algorithm – impressions wise, they have reached an audience of several million and made the saga trend while shifting the opinions of many on the Zimbabwean political landscape &amp; beyond.
vii. As you can see, it’s an effective disinformation campaign. No one will be held accountable. No evidence will be presented, and a restive population has been manipulated.
viii. The agitators have partially succeeded in discrediting Chamisa while offering no practical solutions themselves in addressing the political crisis pursuant to creating a vacuum that they deludedly think can either exploit themselves – or by default help the regime to do it.
ix. Where the strategy has been perfectly executed is in combining excellent timing – in the immediate aftermath of the SADC Summit, where ED emerged triumphant &amp; opposition supporters despondent – and the weaponisation of Chamisa’s “Bible Verses”, in the face of inaction. The agitators had their perfect scapegoat!
x. Once the passions had been stirred enough, reason evaporated. Multitudes were ripe enough to gullibly accept that millions of US dollars could fall into Chamisa’s hands – and such a windfall could secretly be transacted &amp; known by Hwende &amp; others for so long without any paper trail, picture, image and the regime getting wind of it &amp; arresting him &amp; splashing the evidence in the media a la Pious Ncube?
xi. Much more importantly, if ED has successfully compromised Chamisa, why does he need the Tshabangu charade to do this bidding?
xii. Finally, there is the small matter of the hollow brand of politics that Hwende &amp; his cabal have been transacting since they parted their ways with Chamisa. So timid have they been in opposing ED that to the discerning – they are much more likely to be the primary reason for why demos were never on the menu while Chamisa was still at the helm of CCC!
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Brighton Mutebuka defended Nelson Chamisa against bribery accusations. Some people said Chamisa was bribed by President Mnangagwa. They want Chamisa to quit politics. Mutebuka said the accusations came from Chalton Hwende. The goal was to damage Chamisa's reputation and support. The accusers didn't have proof of bribery. They used social media to spread lies. Mutebuka said the accusers wanted to cover their own wrongdoings. They wanted to discredit Chamisa. But their plan didn't have evidence and was just a smear campaign. Chamisa's supporters were tricked.

Mutebuka Stands Up For Chamisa Amid Bribery Allegations

Award-winning journalist Hopewell Chin’ono has criticised opposition leader Nelson Chamisa for calling for “proper elections” in Zimbabwe, arguing that holding elections without reforms is a waste of time.
In response to Chamisa’s comments, Chin’ono stated that elections “don’t work when dealing with a political thug like crookED Emmerson”, apparently referring to President Emmerson Mnangagwa.
Chamisa lamented that since the disputed 2023 harmonized elections, Zimbabweans have not experienced normalcy or peace, as scores of activists have been detained on what some commentators have described as trumped-up charges. Wrote Chamisa on X:
<blockquote>
ZIMBABWE MUST HAVE PROPER ELECTIONS AND FIX BROKEN POLITICS
Following the discredited, illegal and disputed 2023 General Elections, Zimbabweans have not known normalcy or peace.
As of now, 78 families and a one-year-old child are without their loved ones. This is because the 78 political prisoners held different political views and dared to express themselves and exercise their freedom of association.
On the 16th of June 2024, these political prisoners were celebrating Africa Youth Day before being forcibly taken to prison where they remain 45 days later.
In addition, the families of Namatai Kwekeza (a human rights defender), Samuel Gwenzi (Civil society), Robson Chere (trade unionist), Promise Munkuli and Vusimuzi Moyo are without their loved ones for no reason other than their association with wanting a better Zimbabwe, advocating for women, young people, workers and speaking out against injustices.
Robson Chere’s family and friends are faced with the additional burden of fearing for his health given the injuries sustained during his arrest. Robson only wants better for the workers who sustain Zimbabwe.
The family of Bruce Moyo, a young Councillor from Bulawayo is without him because of exercising his political freedom of association as a young citizen and council representative.
Many other people (young and old) are spending nights in the prison cells after being taken abruptly and brazenly for no crime but being targets for simply exercising their constitutional freedom of association.
In Zimbabwe, being an active conscious citizen and being young has become a crime. The citizens, especially the young people, are persecuted for their beliefs and for wanting better lives. 
In Zimbabwe, it has been turned criminal to be young. 
This assault and onslaught on the citizens is a clarion call for unity across the political divide to condemn and rebuke these violations, violence and injustice.
Fellow citizens of SADC and all African countries, this can’t be civilized politics. This is bizarre, and abnormal and must be condemned by all progressives across the world.
</blockquote>
Responding to Chamisa’s calls for “proper elections” in Zimbabwe, Hopewell Chin’ono argued that the country’s “broken politics” cannot be mended “through bogus elections” alone.
Instead, Chin’ono suggested that some other means are required to address the fundamental issues. Wrote Chin’ono:
<blockquote>
We have been talking about elections for the past 24 years, but they don’t work when dealing with a political thug like crookED Emmerson!
Leaders should stop sanitising corrupt rule by repeating the same ineffective strategies of going into choreographed elections!
The only thing elections have provided is a few jobs for opposition members who go to Parliament, fight for cars and salaries, and collect kickbacks from crookED Emmerson as they did with the US$40,000 which I personally exposed in 2022!
Any attempt to railroad citizens into yet another rigged election without reforms will be condemned, and anyone attempting to do so should not complain when we say they are on crookED Emmerson’s payroll!
Nobody will ever be able to fix the broken politics through bogus elections, we must now use other means to deal with crookED Emmerson, elections are not one of those ways!
If there is another election without reforms, we will condemn anyone who gets involved in them and tell our people to stay home.
Let crookED Emmerson contest fake and rigged elections with his poodles!
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Hopewell Chin'ono is saying that having elections in Zimbabwe without changing the way things work is a waste of time. He thinks that the current leader, Emmerson Mnangagwa, is not fair, so just having elections won't help. Nelson Chamisa also thinks that things are not right since the last elections. Many people are in jail just for speaking up. Chin'ono says that having more elections without fixing the real problems won't change anything. He says other ways are needed to make things better in Zimbabwe. So, having another election without changes won't help, according to Chin'ono.

Elections Without Reforms A Waste Of Time - Chin'ono

Economist Gift Mugano has warned that the Zimbabwean economy is rapidly approaching a crisis similar to the one experienced in 2008 when the country’s GDP growth plummeted to -17.7% and the Zimbabwean dollar became virtually worthless.
Reacting to the Mid-Term Budget Review Statement presented to parliament on Thursday by Finance, Economic Development and Investment Promotion Minister Mthuli Ncube, Mugano stated that the Treasury boss should consider introducing a supplementary budget to address the financial shortfall caused by the depreciation of the local currency.. Wrote Mugano on X:
<blockquote>
<h2>The mid-term budget review exposed economic rot</h2>
Forget about nice phrases from my esteemed brother [Mthuli Ncube] – consolidating stability…There is nothing to consolidate. The economy is in a dire situation. The economy going towards the graveyard. We are fast approaching 2008.
These are the facts:
1. Contribution of IMTT to total revenue fell drastically from about 16% in 2019 to 3.4% in 2024 – signifying deepening informality and collapse of the formal economy;
2. Percentage of people employed in the informal sector increased from 75.6% in 2019 to 87.7% in December 2023 – signifying deepening informality and the collapse of the formal economy. @MthuliNcube in the NDS1 was targeting to reduce informal employment to 70% (i.e., increasing formal employment to 30%) by 2025. Right now formal employment is sitting at 11.3%;
3. Youth unemployment is standing at 3.5 million – 3.5 million young people are unemployed. The majority of the youths are drug addicts.
4. National debt has ballooned to US$20.8 billion (ZiG287.2 billion/13.78) up from US$18.73 in 2023, i.e., a staggering US$2 billion increase;
5. Close to 50% of the population is living in extreme poverty.
6. Both the education and health sectors are in intensive care units.
7. Close to 25% of the children under 5 are suffering from stunting growth – future generation &amp; human capital is threatened;
8. Businesses executives tell me that they are failing to access forex from banks with some securing 5-10% of their forex requirement notwithstanding the assurances given by the @ReserveBankZIM
9. Exchange rates are running away – we hear banks are using rates averaging ZiG22.30/US$1 while parallel market rates are hovering around ZiG24/US$1.
10. Aggregate demand is plummeting – mari haisi kubatika or kutenderera – which is now a common statement in the market.
Until GOZ and all stakeholders in the ecosystem of policymaking confess the truth about the state of the economy, we will sleepwalk into 2008.
In view of the fact that the Honourable Minister of Finance didn’t table a supplementary budget, the following question is pertinent:
Official exchange shot from ZWL6000/US$1 (i.e. at the time you presented the 2024 budget in Nov 2023) to ZWL33,882 (now equivalent to ZiG13.52) as of 5 April 2024. Resultantly, the national budget which was equivalent to +US$9 billion when it was presented (under assumption of stable exchange rates) was eroded to US$1.68 billion. Isn’t this enough reason to do a supplementary budget?
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwe's economy is in big trouble again, like in 2008. A famous economist named Gift Mugano said that the economy is getting worse. The government's budget is not enough, and many people are suffering. Lots of people are losing their jobs and living in poverty. The country's debt is growing, and children are not getting proper healthcare and education. The value of money is dropping, and businesses are struggling. Mugano warned that if things don't change, Zimbabwe could face a crisis like in 2008.

Zimbabwe's Economy Going Towards The Graveyard - Mugano

Political analyst Brighton Mutebuka asserts that a push by some of President Emmerson Mnangagwa’s supporters for him to remain in office beyond the conclusion of his second term in 2028 will not come to fruition unless there is a flagrant violation of the National Constitution. Wrote Mutebuka:
<blockquote>
<h2>Complications Arising From The “EDNgaarambe Achingo Tonga” Slogan!</h2>
1. Zimbabwe’s Constitution says it can’t. ED’s term has to end in 2028. There is no Constitutional provision that allows its extension/amendment &amp; allows him to benefit from it.
2. Whatever he is trying to do, it will be unconstitutional, even if he succeeds in doing it.
3. The November 2017 coup was only successful because Chiwenga had control of the Army and managed to unleash it &amp; tanks on the streets, there was national &amp; international consensus that Bob was old, potentially physically &amp; mentally incapacitated, had overstayed, had to go &amp; Grace Mugabe was unhinged &amp; could not succeed him.
4. Catriona Laing, the ex-British envoy was also highly instrumental in immobilising British, EU &amp; regional opposition to the coup – while selling ED as business-oriented, not an ideologue &amp; someone they could work with when re-setting relations &amp; bringing Zim back from pariah status, which ensured that there was a lot of goodwill when ED assumed power.
5. Chiwenga clearly put his neck on the line to topple Robert Mugabe. It is common cause that he feels entitled to succeed ED to reap the mother of all dividends from that desperately dicey enterprise.
6. From a personal ambition point of view, it is plainly the case that he stands to lose the most from any interruption to the current Constitutional processes.
7. He will feel that he has been patient, tolerant and respectful enough.
8. Due to his lengthy ties to the deep state which potentially rivals those of ED, he will likely routinely receive his own intelligence concerning ED’s plans well ahead of time.
9. Again just like ED, he will likely have sufficient clout/influence /reach within the very belly of the deep state to scuttle ED’s plans.
10. ED’s grave miscalculation stems from his failure to appreciate that the pursuit of a 3rd term immediately triggers a risk of a direct confrontation with Chiwenga for interrupting his “Great Expectations.”
11. It is that potential confrontation which presents an existential threat to both of them due to the uncertainty which arises from a complex array of the variables involved.
12. It’s essentially a no-holds-barred, explosive winner-takes-all all duel with an uncertain outcome. There is so much at stake being gambled for so little in return.
13. As the “winner” will be engulfed in illegitimacy, unlike November 2017, they will not be accepted nationally, regionally &amp; internationally.
14. All roads are then likely to lead to a negotiated settlement guaranteed by regional/international bodies.
15. However, if Chiwenga prevails, (depending on how he does this), he can potentially constitutionally lay claim to the “throne” on the basis that he presents a continuation of the previous regime.
16. That can only be a feasible prospect if he somehow ejects ED’s current “checkmate” at the Constitutional Court in the form of Malaba as litigation will clearly be inevitable in such a situation!
17. Again if Chiwenga prevails, he has got no option but to distance his regime as far away from ED’s as possible – and take the João Manuel Gonçalves Lourenço GColIH’s approach (Angolan President &amp; Dos Santos’s successor from the same ruling party) to sanitise his then new regime’s own reputation from the current stench.
18. Such an approach presents a huge risk to ED, his family and acolytes – and potentially informs the current reluctance to give up power.
19. I am tempted to conclude that if ED had full confidence that Chiwenga would protect him &amp; any ill-gotten wealth he has amassed after exiting power, we would not be seeing these current shenanigans.
20. Regardless of how this pans out, there can be no doubt that ED is testing Chiwenga’s soul &amp; cojones to the fullest extent humanly possible!
<h2>Conclusion</h2>
Everything else we are currently seeing is collateral damage in this vicious and highly dangerous power struggle. The political intrigue is certainly gathering momentum.
At the moment, it’s still delicately hanging just on the margins of the political shadows, finely poised and too early to tell who lands the fatal &amp; decisive blow, how &amp; when. But make no mistake …. it’s coming!
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwe's President Emmerson Mnangagwa may not be able to stay in power beyond 2028 according to the Constitution. There is a power struggle between Mnangagwa and Vice President Chiwenga. Chiwenga wants to take over after Mnangagwa. If he succeeds, there may be a negotiated settlement. But if Chiwenga prevails, he will distance himself from Mnangagwa's regime. Mnangagwa is reluctant to give up power because he may lose his wealth and safety. The political intrigue is intense and dangerous. It's unclear who will come out on top in this battle for power.

Complications Arising From The "ED Ngaarambe Achingotonga" Slogan - Mutebuka

Former Member of Parliament Eddie Cross, who is also President Emmerson Mnangagwa’s biographer, has criticised the high levels of corruption in both the Zimbabwean government and private sector.
In a post on his website, Cross asserted that this level of corruption cannot be allowed to continue.
Cross also criticised the exorbitant taxes that Zimbabweans are required to pay, particularly the Value-Added Tax (VAT) on foodstuffs and the 30% VAT tax on live cattle sales.
Furthermore, Cross claimed that the young people rioting in Nairobi, Kenya, sparked by a now-shelved controversial finance bill, had a legitimate grievance.
He suggested that the Kenyan protesters’ actions were justified in light of the economic challenges they were facing. Wrote Cross:
<blockquote>
<h2>Serious Issues Facing Us in Zimbabwe.</h2>
I have been involved in the Zimbabwean economy for over 60 years and have seen just about everything during that period. The Federation, UDI, the liberation war, the transition to Zimbabwe, the total collapse in the years up to 2008, the MAT in 2017. In this period, we have made many mistakes, some deliberate, others just because we felt we had to and others forced on us. However, right now there are some things that need our attention!
Perhaps the first is corruption. Despite the formation of the Corruption Commission and many declarations, we still suffer from massive leakages of economic output and income. When I was in Parliament in 2012, I raised the wholesale theft of diamonds from the newly discovered Marange diamond fields. These covered nearly 100 000 hectares and in that year I estimated that we produced more carats than Botswana.
Production from this alluvial deposit started in 2006 and continues today. It was discovered by De Beers and then a small public company in London, was taken over illegally by the Ministry of Mines and then exploited by 6 companies, all linked to powerful elements in the Government, including the State President. My personal estimate is that Marange has produced nearly US$30 billion in raw diamonds since then. A third was probably absorbed in costs but the rest has disappeared. Mr Mugabe famously asked where US$15 billion had gone since mining had started. He knew the answer to that as I think he personally took US$1,3 billion.
Then the ongoing corruption in the fuel industry. This started soon after Independence with the formation of a State trading organisation for importing and distributing fuel. This was dismantled in the GNU from 2009 to 2013 by an MDC Minister but was reinstated soon after Zanu took back power in 2013. These corrupt practices peaked in 2014 to 2017 when world market prices tanked but prices in Zimbabwe were held at a higher level. During this period the President was again a major beneficiary.
Since the Second Republic, this network of corruption has largely been dismantled by the new Government, but if you are as puzzled as I am as to the hundreds of new filling stations opening up – all as independents and wonder why? I am told they are money laundering but I think there are millions of litres of fuel entering the country and not paying taxes or levies. The loss to the Exchequer must be almost as much as we spend on health each year.
Largely because the Minerals Marketing Corporation was disabled by US sanctions, under pricing of exports has become endemic. The CEO of the Corporation was killed in mysterious circumstances and I am convinced it was because he was threatening illegal or under valued exports. The murder of the head of the Zimbabwe Investment and Development Authority was in similar circumstances.
Then there is the whole culture of corruption in every sector of the Governments activities. The news that a Clerk in a Ministry had used her senior signature to falsify imports of 3000 vehicles duty free, the loss to the exchequer must have been US$20 million. She has done a runner. In 2022 the State collected just US$484 million in custom duties at our borders, we imported US$1,4 billion in cars alone and over US$7 billion in all imports. Just do the math, the tax revenues should have been several times that amount.
It is well known that in certain Ministries if you want a decision of any sort, you have to pay for it. I was approached by a senior Civil Servant for a bribe to sign a letter, I said but surely that is your job. I was told ‘do you think we do this sort of thing for nothing’? I did not pay the bribe and did not get the letter. It has become a culture just as the former head of the Kenyan Anti-Corruption Agency wrote ‘it was our time to eat’.
This scrouge soon also infects the private sector. The statement by the Dubai Gold Exchange that in 2023 they bought nearly 450 tonnes of gold from informal origins in Africa. That is US$32 billion dollars’ worth, a third from Zimbabwe. No wonder we are awash in US dollars in cash. Right now, up to 700 000 small scale informal miners are out there mining gold to feed their families, that is why we do not really have a food crisis in what has been a disastrous season. But much of this huge flow of cash never comes home.
Add all this together and you can see why I argue we are a rich country, made poor by bad governance in both Government and the private sector. Just look at our informal sector, we are probably the most informalised economy in the world. That whole system does not pay taxes, does everything to avoid its obligations leaving the formal economy to support everything else.
But then also you have to try to understand why those companies who paid for foreign currency on the RBZ auctions have not been paid back after the auction was closed down. I understand all exporters are having 25 per cent of their gross export earnings liquidated, but no consequential payments in local currency are being made. How long can these vital companies to our economy survive? I simply do not understand this situation.
Surely also the State must understand that our tax system has far exceeded the level at which tax proceeds start to decline. The VAT on basic foods? Are we crazy? 30 per cent VAT tax on live cattle sales when the sellers (90 per cent rural peasants) do not have a current valid tax certificate? I think the young people rioting in Nairobi had a real case. The response by Ruto was measured and quick. We simply accept this totally unacceptable situation and go on with life as usual. Our Government needs to recognise that this situation simply cannot go on.
Eddie Cross
Harare 7th of July 2024
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Eddie Cross, who wrote about President Mnangagwa, is upset about corruption in Zimbabwe. He thinks it's too much and needs to stop. Cross also said that taxes in Zimbabwe are too high, like the 30% VAT on cattle sales. He talked about problems in mining, fuel industry, and government. He mentioned how much money is being lost because of corruption. Cross thinks the situation is very bad and can't continue like this. He believes the government needs to change things before it's too late.

"This Situation Simply Cannot Go On" - Mnangagwa's Biographer, Eddie Cross, Decries Corruption In Zimbabwe

MDC president Douglas Mwonzora has accused the Citizen Coalition for Change (CCC) and its Members of Parliament of assenting to President Emmerson Mnangagwa’s alleged plans to run for a third presidential term or seek an extension of his current one.
Addressing reporters in Bulawayo, Mwonzora dismissed Mnangagwa’s recent assertion that he will not seek a third term and will retire at the end of his second and final term in 2028.
Mwonzora alleged that the CCC lawmakers have tacitly approved Mnangagwa’s purported plans to remain in power beyond the constitutionally mandated two-term limit. Said Mwonzora (via <a href="https://cite.org.zw/mwonzora-alleges-ccc-mps-complicit-in-mnangagwa-third-term-agenda/">CITE</a>):
<blockquote>
The president’s party ZANU PF is talking about his presidential term ending in 2030. We know they want to extend the term of office by another term but their ZANU PF lawyers are aware that extending a term may be difficult so they want to extend the presidential term to say it is not five years but now seven years.
Most of their leaders are in agreement. This is selling out Zimbabwe’s constitution, and the people and is selfish because these MPs want to stay in Parliament for as long as possible.
Others have left their political parties to form another party, abandon it, form another one and the people who are running this project are former officers from the Border Gezi masquerading as the opposition. They are busy taking the opposition for the ride.
</blockquote>
Mwonzora substantiated his claims that CCC is heavily compromised by citing circumstantial evidence.He said:
<blockquote>
There is a legal phrase res ipsa loquitur meaning facts speak for themselves. Don’t you see they are compromised? Don’t you see they have a given Emmerson Mnangagwa two-thirds majority?
Don’t you see the leader of the CCC was quiet when the recalls were done? Right now CCC in Parliament have not spoken against the third term, I dare them to speak against the third term.
</blockquote>
Mwonzora acknowledged that during his tenure as the leader of the opposition in Parliament, he would occasionally meet with Mnangagwa and “never made a secret of it”, in contrast to the CCC leaders who have reportedly been hosted at lavish banquets at State House. He said:
<blockquote>
I would go to meet him as leader of the opposition but never, never did President Mnangagwa or his wife throw a party for me.
President Mnangagwa’s wife threw a party for the CCC MPs in the State House. What more evidence do we require?
Our brothers and sisters have been compromised and are supporting the third term, supporting the extension of the term of President Mnangagwa.
They have not spoken against a third term, they have actually agreed that Mnangagwa must extend his term. Let them come out and deny it. They have not denounced it.
</blockquote>
However, Mwonzora’s allegations against the CCC appear to be a case of the pot calling the kettle black, as he himself previously supported a constitutional amendment while he was the leader of the opposition in Parliament.
In 2021, Mwonzora defended MDC lawmakers for joining ZANU PF MPs in supporting a constitutional amendment that removed the requirement for a presidential running mate, extended the women’s quota, and removed the 70-year retirement age cap for judges.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

MDC leader Douglas Mwonzora says CCC MPs are supporting President Mnangagwa's plan for a third term. He accuses them of selling out Zimbabwe's constitution. Mwonzora claims CCC MPs want to stay in power for as long as possible. He says CCC leaders have been hosted at State House and are not denying support for a third term. However, Mwonzora himself supported a constitutional amendment before. He defended MDC lawmakers for supporting changes to the constitution in 2021. Mwonzora's accusations against CCC may be hypocritical based on his own past actions.

Mwonzora Claims CCC MPs Support Mnangagwa's Third Term Agenda

Following President Emmerson Mnangagwa’s remarks on Thursday, July, stating that the ZiG would become the sole legal tender before 2030, economist Gift Mugano offered his perspective.
Mugano stated that the government must first establish the minimum requirement for the new currency to succeed before implementing such a policy.
He also advised that policymakers should not introduce new policies on a whim, but rather listen to the needs of the market and strive to develop evidence-based, market-driven policies. Wrote Mugano:
<blockquote>
<h2>On President Emmerson Mnangagwa’s Statement Regarding the Introduction of Monocurrency (i.e., ban of USD):</h2>
This week, President Mnangagwa announced that he will soon introduce ZiG as a monocurrency (i.e., in less than 2 years) if he is satisfied that ZiG is now circulating across the whole country.
Well on time before President Mnangagwa pronounces policy decision to ban the use of the USD, I thought that it is wiser that I capitalise on the President’s open-door policy [George Charamba, the Deputy Chief Secretary in the Office of the President and Cabinet (Presidential Communications)]and share with him my humble views on critical considerations which must be taken into account before introducing a new currency or mono-currency:
1) GOZ must develop a culture of seeing through its policies to the expiration date before making conflicting statements. For example, the pronouncements by the President that he will soon introduce ZiG as a monocurrency is in direct contradiction with the SI 218 of 2023 which extended the use of the multiple currency system to December 2030. This President’s statement, him being the AUTHORITY, will put markets into disarray and will see banks cutting back on USD lending – this will come with massive negative consequences on the economy. In the same vein, some banks with long-term loans in USD will start counting their losses – this will erode trust in government policies and confidence levels.
2) The introduction of a local currency requires basic minimum requirements such as current account surplus, fiscal consolidation (we have to reduce our debt significantly to regions averaging 30% of GDP); a highly productive economy; single-digit inflation and stable exchange rates. In reality, it is very difficult to attain all these conditions at once. However, we must strive to build a productive and competitive economy. I would like to argue that the best way to back our currency is to back it with production. We need disruptive structural policies, that is, industrial policy, agricultural policy, trade policy and energy policy &amp; energy master plan. These policies must be anchored on twin objectives, that is, import substitution and export drive.
3. The informal sector has always been and will always be a hindrance to government policies. The informal sector runs its affairs based on informal rules, not government policies. In its current state, GOZ has no capacity to rein in the informal business. We must formalise the informal sector. The best way to formalise the informal sector is to build a productive economy (see (2)) which will see some sections of the informal sector such as vending and boot economy disappearing as people move into the formal sector/secures formal jobs. Again, with a productive economy, genuine small businesses/informal sectors will remain such as distributors and, through market linkages, will be formalised. In short, we must grow the formal sector.
4. We need to build confidence. Confidence building requires critical actors such as banks and GOZ to walk the talk. Banks, for example, must provide sound banking products at affordable costs/reduce bank charges drastically. The main source of income for banks must be interest rate not bank charges! GOZ must develop evidence-based &amp; demand-driven, credible and predictable policies. Most importantly, it is my humble view that GOZ must undertake nationwide consultations which will lead to a national dialogue on currency crisis and possible remedies. The output of this dialogue should be a de-dollarisation roadmap which is built on the realities facing the country and national consensus.
When introducing a new currency or addressing the currency crisis, it is my humble view that we must be more pragmatic and inclusive in our approach. The fact of the matter is that our country has been held back by currency crisis for close to 27 years, that is, from 14 November 1997 to date and there is no sign of it ending any time soon. This means that we need to do things differently hence my foregoing submission.
As I end my submission, I would like to remind President Mnangagwa of critical events regarding currency matters in Zimbabwe:
1) In February 2009, GOZ adopted the USD as the main currency. The market dumped ZWD and introduced USD. The USD was not introduced by Patrick Chinamasa as he always claims. He was the acting Minister of Finance – he was forced by the market to adopt the USD. Here is the evidence, Chinamasa’s budget of 2009 was in quintillions of ZWD, not USD.
2) My good brother, Honourable Mthuli Ncube introduced monocurrency on 24 June 2019. On the same date, I was the first guest at StarFM on Linda Muriro on Monday and I underscored that we will return to USD in March 2020. I made repeated claims on StarFM on subsequent programmes of Linda Muriro on Monday. It came to pass. In March 2020, we went back to USD. I am raising this precedence so that we can draw lessons from history.
<h2>Lessons:</h2>
1) We must establish the minimum requirement for the introduction of the new currency if we want our currency to succeed (see my submission above).
2) When it comes to economics, the market is the best constitutional court on any economic matter. Policymakers must always listen to the needs of the market and must always endeavour to develop evidence-based and market-driven policies.
Yours Truly,
Professor Gift Mugano (Ph.D)
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Economist Gift Mugano Weighs In On Mnangagwa's ZiG Currency Plans

In a small village nestled in the heart of Manicaland Province, Tarisai Ndimi wakes up before the crack of dawn to start her day.
She cooks, cleans, fetches water, takes care of younger siblings, and tends to the needs of her family before heading off to school herself.
This is the reality for many young women in Zimbabwe who bear the burden of unpaid care and domestic work.
Unpaid care and domestic work have long been seen as the responsibility of women and girls, perpetuating gender stereotypes and limiting their opportunities for education, employment, and taking up leadership positions.
This invisible labour often goes unrecognized and undervalued, leading to a cycle of poverty and inequality that disproportionately affects women and girls.
As Tarisai navigates her daily tasks, she dreams of becoming a leader in her community, of making a difference and creating positive change.
However, the weight of her domestic responsibilities is like an albatross on her shoulders, leaving her exhausted and with little time or energy to pursue her ambitions. Said Tarisai:
<blockquote>
I cannot attend after-school clubs because I must be home to start with preparations for dinner. I can only write my homework after all the household chores have been attended to which is quite late into the night.
Even if I was selected to be a prefect, I would have to forfeit the position because I can not effectively carry out my duties due to obligations at home that require my attention.
</blockquote>
For young women like Tarisai, the demands of unpaid work often come at the expense of their education. Girls may attend school irregularly or drop out entirely to meet their family’s needs.
This educational disadvantage continues into adulthood, where women are less likely to pursue higher education or vocational training, further limiting their career prospects and financial independence.
Addressing this issue requires targeted policies that support girls’ education, such as scholarships, flexible school hours, and community awareness programs that emphasize the importance of gender equality in education.
The negative impact of unpaid care and domestic work on young women’s participation in leadership and community development is evident.
They are often excluded from decision-making processes, marginalized in public spaces, and constrained by societal expectations that prioritize their domestic roles over their personal and professional aspirations. 
According to the Women’s Coalition of Zimbabwe, even when women try to enter the workforce, unpaid domestic labour becomes a major obstacle to their access to paid work opportunities.
Although women’s inclusion into the workforce is a sign of empowerment, it leaves them with a double burden. They have to handle work responsibilities in addition to their domestic work. 
When one woman steps out of the house to work, the responsibility of domestic work falls on the other women in the house.
In nuclear families where both the partners work outside, women are still responsible for almost all house and family-related work.
According to data from the International Labour Organization (ILO), women spend an average of 4 hours and 25 minutes per day on unpaid care and domestic work, while men spend an average of 1 hour and 23 minutes per day on such activities.
This means that women, on average, spend more than twice the amount of time on domestic work compared to men.
According to Sibonokuhle Buhlungu , the cluster lead for the Politics and Decision Making for the Women’s Coalition of Zimbabwe, the invisible burden of unpaid care and domestic work has resulted in fewer women participating in leadership and decision making processes.
They spend a disproportionate amount of time on UCDW, ensuring that the household runs smoothly and fulfilling the caregiving role. Buhlungu further stated:
<blockquote>
Women are left with little or no time to contribute meaningfully to the leadership and decision-making discourse. This has led to fewer women taking up leadership positions.
</blockquote>
Furthermore, the lack of recognition and support for their unpaid labor perpetuates a cycle of poverty and disempowerment, limiting their ability to break free from traditional gender roles and achieve their full potential.
It is imperative that the systemic barriers that prevent young women from fully participating in leadership and community development be addressed and this includes recognizing and valuing their contributions in the home, providing access to education and training opportunities, and creating supportive environments that promote gender equality and empowerment.
In Zimbabwe, we have seen various women’s empowerment organizations like WICoZ advocating and pushing for a National Care Policy that will recognize and acknowledge the value, effort, and contribution of unpaid care and domestic work to women and girls.
Furthermore, if this policy is implemented, it will reduce the disproportionate burden of care work on women and girls, giving them more time to take up leadership positions and get involved in important decision-making processes.
Story contributed by Varaidzo Zhou
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

The Invisible Burden: Unpaid Care And Domestic Work's Impact On Young Women's Leadership And Community Development

Self-exiled former cabinet minister, Walter Mzembi, says ZANU PF sympathiser Wicknell Chivayo, who is at the centre of a US$40 million Zimbabwe Electoral Commission (ZEC) tender scam, will not be prosecuted or ostracized by the “system” but his erstwhile colleagues who turned against him are in trouble.
Chivayo’s former business partners, Mike Chimombe and Moses Mpofu have accused him of fraudulently changing their contract with South African company Ren-Form and Better Brands to supply voting material to ZEC in the run-up to the 2023 general elections.
Chimombe and Mpofu are also suspected to have leaked Chivayo’s voice notes in which he claimed to have captured President Emmerson Mnangagwa.
Chivayo accuses Chimombe and Mpofu of employing advanced Artificial Intelligence to fabricate the voice note, making it appear as if he self-incriminated.
Mzembi contends that the ZANU PF Youth League and certain bureaucrats, including Information Ministry spokesperson Nick Mangwana, “punched above their weight” when they criticised Chivayo after the exposé. He wrote on X:
<blockquote>
WC (Wicknell Chivayo) is not going anywhere, the last fortnight’s episodes just helped ED to understand who is standing with him and his choices to the end. The saga assumed political dimensions steeped in factional politics.
Chivayo will be counselled and will change his engagement modus with ED to a subtle &amp; respectful distance, it’s too risky to withdraw him from association, the stakes are too high; in my books, he has the credentials of an Ambassador at Large already and his continental footprint perhaps international attests to that.
ED won’t embarrass himself or him to his colleagues that he was mixing them with the wrong James Bond so he will stand by him as some victim element of our toxic politics. It’s on public record that our politics is toxic so its a convenient explanation to other constituencies.
WC will be forgiven at least in the Zim jurisdiction but his colleagues may sing the blues as a compromise… after all, according to the system, they torched a situation they could have resolved in boardrooms and sucked in everyone else.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Wicknell Chivayo Will Be Forgiven But His Colleagues Will Suffer, Says Mzembi

President Emmerson Mnangagwa has been criticised for showing “desperation” during a meeting with Russian President Vladimir Putin at Konstantinosky Palace in the Petrodvorets district of St. Petersburg, Strelna village, two days ago.
Mnangagwa told Putin that Western countries are consolidating their power in Zambia “in terms of security and in terms of financial support” thereby isolating Zimbabwe.
However, it is not true that the United States Africa Command (AFRICOM) has a base in Zambia.
Last year, Gen. Michael Langley said that the United States established an Office of Security Cooperation in Zambia but there are no plans to establish a U.S. base in the country.
He said the Office of Security Cooperation is just an office with a desk with an officer manning that desk whose mission is to keep deepening the two countries’ relationship, long-term bilateral security relationship between the United States and Zambia.
Journalist and government critic Hopewell Chin’ono said Zimbabwe is always getting played because the country’s leaders don’t know how to negotiate.
Commenting on video footage of Mnangagwa’s meeting with Putin, Chin’ono said the Zimbabwean President showed desperation in trying to engage with Russia. He wrote on social media:
<blockquote>
You don’t negotiate by selling yourself short, saying that you are lonely and that nobody in the West wants to engage with you.
This approach signals to the other side that you are desperate, revealing that you have no perceived value.
What we saw explains why Zimbabwe is always getting played, our leaders don’t know how to negotiate at all.
He should have said that the West is offering many opportunities to thaw relations, but because of our liberation history with Russia, he prefers to do business with them if they provide a good deal.
By openly stating that Zimbabwe is “desperate” for engagement with the West, the President weakened his position and gave President Putin an advantage in future negotiations.
To get the best deal, it is essential to convey a strong bargaining position and demonstrate the value that Zimbabwe brings to the table.
Highlighting the country’s historical ties with Russia was a good carrot, but emphasising the potential benefits of improved relations with the West was going to be the stick rather than revealing desperation.
What we saw in that video is a glimpse of how Zimbabwe has been sold cheaply in the last 44 years due to incompetent negotiating skills!
</blockquote>
Meanwhile, Mnangagwa on Saturday said he reaffirmed the importance of a multipolar world to achieve air and inclusive global development. He posted on social media:
<blockquote>
I had the honour of addressing the 27th St. Petersburg International Economic Forum (SPIEF) alongside President Vladimir Putin.
I highlighted the importance of a multipolar world, advocating for fair and inclusive global development.
Zimbabwe stands by the philosophy of “friend to all, enemy to none,” embracing cooperation, partnerships, and investments to drive mutual growth.
I again called for the removal of illegal sanctions and sought strategic investments in infrastructure, education, and renewable energy to unlock our potential.
Together, we aim to build a just, inclusive, and prosperous world. Zimbabwe is open for business and welcomes partnerships across all sectors.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwe's Leaders Lack Basic Negotiating Skills, Putin Will Exploit Mnangagwa's "Desperation" - Chin'ono

Veteran opposition politician David Coltart has warned that the rise of Sengezo Tshabangu to become the Leader of the Opposition in Parliament will damage the country’s standing abroad and make Zimbabweans “the laughingstock of the world”.
Tshabangu, an obscure opposition activist, wrote to Parliament and the Ministry of Local Government in October 2023, recalling several CCC MPs and Councillors.
Surprisingly, both Parliament and the Minister acted upon Tshabangu’s letters, even though he had neither held a CCC office nor been a candidate in the 2023 general elections.
Subsequently, Tshabangu recalled dozens of additional CCC councillors and MPs, with the courts endorsing his actions, effectively establishing him as the de facto leader of the opposition party. 
This week, Tshabangu changed the party’s leadership in Parliament and also appointed himself Leader of The Opposition.
This came after Parliament rescinded the appointments that were made by Jameson Timba in February this year.
Posting on X, Coltart who is also the mayor of Bulawayo (CCC), Zimbabwe’s second-largest city, said Tshabangu does not have the mandate of the opposition to be its leader in Parliament. Below is Coltart’s post in full:
<blockquote>
I am appalled by the statement made by the Speaker of Parliament yesterday that Mr Tshabangu has been recognised as the leader of the Opposition in Parliament. In my view, this act is contemptuous of Parliament itself.
At their core, all Parliaments throughout the world are meant to be representative institutions. They have been established to give the public a voice.
The whole purpose of elections is to ensure that elected MPs can enunciate the concerns and issues of those who elected them.
This is the very essence of representative democracy. It follows that the leader of the Opposition must be a person who clearly represents the interests of citizens who oppose the government of the day and who has been clearly chosen by them, either directly or indirectly, to lead them in Parliament.
In the case of Mr Tshabangu, it is clear that he only represents his own interests and at most a tiny cabal of people around him.
The facts are stark. He has never held any high office in the MDC, or any of its successors, since it was established in September 1999.
At the May 2019 MDC A Congress in Gweru, he was not elected to any office. After the formation of the CCC, he was not elected or appointed to any office. In the August 2024 general election, he was not elected to any ward or constituency.
The facts show that after the general election last year, he purported to appoint himself as SG of the CCC, and subsequently to nominate himself as a PR Senator.
He has now appointed himself as Leader of the Opposition in Parliament. Once again there is no evidence that this has been sanctioned by anybody other than himself.
The fact that Courts in judgments of exceptionally dubious and flawed jurisprudential reasoning have supported him in this illegal conduct does not rectify the fact that he does not represent anyone.
Other than his own say so there is no independent evidence of him being elected or appointed to these offices. In short, he represents no constituency, either directly or indirectly, and has little palpable support amongst the general electorate.
It is simply farcical for him to be presented as the Leader of the Opposition based on his own assertion. The Speaker has done both Parliament and the Nation a disservice by associating himself and Parliament with this narcissistic conduct.
It brings Parliament into contempt in the eyes of democrats and rational people both in Zimbabwe and elsewhere.
In fact, it does immense damage to Zimbabwe’s reputation internationally. Conduct like this simply would not be tolerated anywhere else in the democratic world.
Those who support this conduct need to have some serious introspection about the damage they are doing to “Brand #Zimbabwe”. All this does is make us the laughingstock of the world.
</blockquote>
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Tshabangu’s Rise Makes Zimbabwe A Laughingstock, Says David Coltart

Mmatigari, a social media personality active on X (formerly Twitter), has accused the Ministry of Finance, Economic Development, and Investment Promotion and the Reserve Bank of Zimbabwe (RBZ) of lacking empathy for the majority of citizens who are inconvenienced by the critical shortage of ZiG notes and coins.
Authorities introduced the ZiG on April 5, 2024, to replace the Zimbabwe dollar. However, there continues to be a serious shortage of ZiG notes and coins, significantly impacting the day-to-day lives of most Zimbabweans.
While supporting the introduction of the new currency as a noble idea, Mmatigari contends that the Treasury and RBZ bosses have become divorced from the daily struggles of the people, displaying a “lack of empathy” and disquieting indifference to the citizens’ plight. Below is Mmatigari’s post on X:
<blockquote>
1/ ZIG’s a brilliant idea. In fact, we must work towards dedollarising fast.
However, the intro &amp; execution of ZIG by [the Ministry of Finance, Economic Development and Investment Promotion] &amp; [the Reserve Bank of Zimbabwe] shows disquieting indifference &amp; absolute LACK OF EMPATHY for people by policymakers. Here is why:
2/ Millions of Zimbabweans run small businesses and earn below $300/month income. Here is the problem: In Harare, before the ZIG intro, an average kombi trip was 50c. There was change in bond notes before ZIG. This means getting into and out of town costs $1 using public transport
3/ In the first week of April, @ReserveBankZIM introduced ZIG. Suddenly, there is no way to change a dollar.
What do kombi drivers say to the commuting public? Find a partner to pair with and reconcile on your own because we don’t have change. Otherwise, the fare is $1.
4/ This sounds innocuous if you think of it as a $1. But what does that actually mean?
The ramifications are huge. The effect of this is that a trip for any commuter is at least $1.
5/ Why is this change significant? It’s huge because it’s a 100% increase in commuting costs.
Take commuters who work 6 days a week doing a round trip into town. That’s 24 days. Before April, they needed $24 a month. Now they need $48, a 100% jump.
6/What’s the meaning of that? Assume a worker at Pick n Pay earns $250 net of tax. In March, their income after commuting was $226. Suddenly because of the bumbling execution of ZIG, that employee is left with $200. If that employee has a child commuting to school, do the math.
7/ What does this mean for small businesses? An SME needs all hands on deck. Assume you have 10 employees, and before ZIG in March, you paid them a $25 transport allowance, that’s $250. In April, the allowance goes up 100% to $500 per month, wiping off your profits.
8/ I am only factoring in a round trip. Think of an employee at Pick n Pay Highland Park in Highlands who lives in Kuwadzana. The transport cost shoots up from $2 to $4, daily. That balloons the commuting costs to $96 a month.
9/ Commuting costs have doubled in a month, and we know that salaries have not doubled. What is this doing to our people? Just because the RBZ is not availing bank notes and solutions to make life convenient for our people.
People are not asking for much, just basic issues.
10/ And what’s worse? Kombis are very unlikely to bring back the commuting cost per trip to 50c even if change is made available in ZIG tomorrow.
11/ So what is this doing to inflation stats? What is this doing to small businesses and self-employed people? 
What is this doing to school kids commuting to &amp; from school from low-income households? What is this doing to civil servants? What is this doing to society in general?
12/ I have seen videos of women wrestling kombi staff to get their change back, and we know it’s a structural problem.
Why did we not think about these basic questions that affect the majority of our people DAILY. It’s now over a month plus since ZIG was introduced.
13/ Officials at the ministry of finance &amp; [Reserve Bank of Zimbabwe] drive cars, probably get fuel coupons, don’t know what a kombi looks like and probably don’t know who picks and drops their kids to &amp; from school.
They are VERY divorced from the daily struggles of the people. Clueless.
14/ How else can u explain such basic issues affecting millions not getting addressed over a month after ZIG’s introduction?
The only sensible explanation is an absolute lack of empathy and disquieting indifference to the people’s plight by @ZimTreasury &amp; @ReserveBankZIM officials.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

ZiG Cash Shortage: Treasury, RBZ Bosses Are Clueless And Have Zero Empathy For Zimbabweans, Says Mmatigari

UK-based Zimbabwean lawyer and academic Brighton Mutebuka says Neville Sunungurai Mutsvangwa, the son of ZANU PF power couple Christopher and Monica Mutsvangwa, could be in trouble following his arrest on Wednesday.
Neville’s mother, Monica is the Minister of Women’s Affairs, Community, Small and Medium Enterprises Development and his father, Chris, is the ZANU PF spokesperson and chairman of the Zimbabwe National Liberation War Veterans Association.
He appeared in court on Friday, 10 May, facing one count of contravening section 5(1)(a)(ii) of the Exchange Control Act [Chapter 22:05] as read with section 4(1)(a)(1) of the Exchange Control Regulations SI 109 of 1996 “Dealing in foreign currency”, one count of contravening the Bank Use Promotion and Suppression of Money Laundering Act and another count of contravening the Money Laundering and Proceeds of Crime Act, and contravening the Postal and Telecommunication Act.
Posting on X (formerly Twitter), Mutebuka said the timing of Mutsvangwa’s arrest could be linked to his father’s alleged fallout with President Emmerson Mnangagwa and ZANU PF’s succession politics. Wrote Mutebuka:
<blockquote>
1. ZANU PF isinjonjo or tamba waka chenjera, they have always said. It’s prone to eating it’s own children from time to time.
2. We know that Chris Mutsvangwa fairly recently fell out with ED, leading to his unceremonious exit from Cabinet, while his wife Monica now has a pedestrian and less prominent Cabinet role.
3. While Chris retained his portfolio in ZANU PF, he strategically went into hibernation following his fallout with ED, perhaps rightly choosing to lie low until the worst of the storm had passed.
4. In his absence, we have seen a series of damning letters bearing his signature with sensational content. ZANU PF and the regime have both labelled them fake.
5. Yet the problem is that, sometimes ZANU PF can be engulfed in hysteria and paranoia, particularly in situations mired with succession politics.
6. You really do not know whether some in the party or regime can start to be doubtful or suspicious. To make matters worse, it’s not yet clear whether or not Chris has patched things up with ED, although he appeared to be on the way to doing so.
7. Enter this Neville arrest incident &amp; Monica Mutsvangwa’s leaked audio, which would appear to suggest that she was rattled by this development.
8. Perhaps Neville picked the worst possible moment for his moment of sheer folly – recklessly displaying a WhatsApp status capable of being construed as showing defiance &amp; contempt via showing his current $ZiG v US$ rate at a time the regime is nervously &amp; desperately trying everything to shore up the beleaguered currency’s value.
9. That clumsiness/immaturity/recklessness probably converged with an uncompleted patching-up process between Chris &amp; ED and elements in the regime who still had unfinished business with Chris went Voila! takubatira pano!
10. It is a combination of unfinished business &amp; conspiracies surrounding succession politics which potentially spells doom for Neville.
11. By the looks of things, the regime has been aware of Neville’s shenanigans for some time. Typical of the regime, it lets you relax …. appearing not to take notice of this until such a time you cross its path like he has now done, before proceeding to throw the book at the presumed villain mercilessly!
12. And so it seems that via that lengthy charge sheet and the customary denial of bail before the weekend usually reserved for the regime’s worst critics, we can fathom that Neville could be in for a chastening experience pursuant to sending a chilling message to his garrulous &amp; indiscrete father.
13. Monica would not get rattled unless she felt she had cause to via intuition, premonition or a sense of foreboding from either the rumour mill, recent events or muscle memory over how ZANU PF politics has been conducted over the years.
14. Then there is the question of who recorded &amp; leaked that audio and for what purpose. This has to have been someone who had access to her, an insider who was trusted, or the regime simply calculated that once told of the arrest, she would be unable to resist the “nibble” and download to a “trusted ally” and then proceeded to intercept the call.
15. Leaking the call would serve the purpose of broadcasting her palpable fear and insecurities while also exposing her distrust of the regime – and casting her and Chris as outsiders, and not the courtiers/insiders they had been perceived as since the rise of the Vene Kingdom.
Conclusion
Early days but the omens do not look good for Chris and his family in the Vene Kingdom. Clouds appear to be darkening and vultures appear to be settling, but we are not quite there yet.
You see, strange things always tend to happen in politics. Sometimes you smell these things. You can sense a relationship that is rupturing or falling apart at the seams.
You see, some relationships are so profound in nature and character that, even a minor dislocation to the established equilibrium is not capable of being reconstituted – at least not easily or quickly.
Dislocation can cause annoyance – which is reparable, or it can result in a catastrophic loss of trust or connection, or safe space/bubble or treasured ‘dynamic’ and suddenly everything feels off!
That could be where Chris &amp; his family are at a most delicate moment in the succession battle, casting them as outsiders and deserving of the treatment which should be meted out to “enemies”!
All should be revealed in the next few weeks. We should mark out whether there is escalation or de-escalation.
Make no mistake, the longer Neville languishes in “Reeds”, the more likely it will be that it will seem like curtains for Chris, that man, whose footage merrily dancing to and singing “Kutonga Kwaro” at the HCC celebrating ED’s dramatic rise in November 2017 is indelibly etched on the nation’s psyche.
If that were to happen, such a development would be so surreal as to be violently jarring to many Zimbabweans watching the drama from the terraces.
</blockquote>
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Why Neville Mutsvangwa Could Be In Trouble - Mutebuka

Zimbabwean academic, financial analyst, and economist, Gift Mugano, has warned that goods will disappear from supermarket shelves after the government introduced rules making it mandatory for businesses to use the fixed exchange rate.
On Thursday, 09 May, the Minister of Finance, Economic Development and Investment Promotion, Mthuli Ncube, gazetted Statutory Instrument 81A of 2024 which penalises individuals and companies charging prices above the prevailing official foreign exchange rate.
The official exchange rate in the economy is set daily by the Reserve Bank of Zimbabwe (RBZ).
Offending firms and individuals will be fined ZiG200 000, but if the foreign currency taken in is higher in value, then the penalty equals that foreign currency.
Furthermore, the 10 per cent premium that retailers were allowed on the official exchange rates between foreign currency and the ZiG has now been abolished.
Responding to the developments, Mugano said Statutory Instrument 81A of 2024 “will definitely kill the formal businesses”. He wrote on X (formerly Twitter):
<blockquote>
The New Amendments to the Exchange Control is a total disaster!
Goods will disappear from the formal sector and appear in the informal sector! Unfortunately, GOZ can’t regulate or enforce compliance in the informal sector because it’s gigantic &amp; stubborn.
This gives the informal sector latitude to set own informal rules and disregard government policies/regulations.
The informal sector has the flexibility to operate at competitive exchange rates/black market rates which will definitely kill the formal businesses.
The irony is that we have been on this road before and it didn’t work! GOZ must develop a culture of carrying out impact assessments of its policies and come up with improved policies.
The informal sector is a menace and fluid – we must apply critical thinking not emotions if we are to redirect the economy on the right path.
In my previous instalments, I proffered solutions which GOZ must consider to save the ZiG but authorities ignored the advice.
It is high time that we undertake a comprehensive assessment of the root causes of our economic problems. We must never be prescriptive.
At the moment I humbly suggest that authorities stop issuing press statements and statutory instruments because it is not taking us anywhere.
Let us undertake a 360-degree investigation of our economic crisis and come up with comprehensive solutions which must include political remedies!
Otherwise, we are going nowhere.
</blockquote>
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Penalising Companies For Charging Prices Above Official Forex Rate Will Kill Formal Businesses - Mugano

Economics professor Gift Mugano has reiterated his assertion that Zimbabwe’s new currency, ZiG, will fail in response to criticism from ZANU PF spokesperson Christopher Mutsvangwa. Below is Prof Mugano’s statement in full:
<blockquote>
<h2>UNPACKING WHY THE NEW CURRENCY (ZIG) WILL FAIL</h2>
[On Monday], Honourable Mutsvangwa held a press conference and as usual, he went on a rampage calling me all sorts of names because I raised reservations about the new currency [Zimbabwe Gold (ZiG)].
I thought that it is fair that I provide a breakdown of the reasons why the ZiG will fail. The ZiG will not be killed by Gift Mugano’s negativity as Amb Mutsvangwa would like to insinuate but by massive policy missteps mainly by the Reserve Bank of Zimbabwe and Treasury as well as the absence of structural policies.
<h2>1. Reducing interest rate from 130% (i.e., 10.8%/month) to 20% (i.e., 1.67%/month)</h2>
One can be forgiven for thinking that the RBZ is assuming that by backing the ZiG with gold and cutting the zeros, the ZiG is in the same league with gold and USD, hence the decision to bring down annual interest rates to 20%. The reality is that ZiG is as good as ZWL and the economic environment has remained the same, that is:
a) Volatile exchange rate – the black-market exchange rate has continued to run away – we hear that it is now trading at ZiG20 (the equivalent of ZWL$50,000) against USD;
b) Inflation remains high;
c) Our disposable incomes and aggregate demand have not increased because the zeros were cut;
d) Dwindling foreign currency supply caused by the double tragedy of declining export receipts (as a result of falling commodity prices) and draining of foreign currency as a result of food imports caused by drought.
It is my humble view that RBZ’s decision to lower interest rates is a serious policy misfiring that comes with massive consequences:
(a) Unproductive lending – any rational bank would institute measures aimed at defending its asset base from shrinking. Investment in housing development and properties stands out as the most attractive investment option. In circumstances like these, there are high chances that fewer resources will be channelled towards the productive sector. This will militate against the survival of the ZiG. Strong currencies are backed up by production – resulting in fewer imports and an increase in exports;
(b) Speculative borrowing – without contradicting with (a), for “obvious reasons” the banks will still lend the productive albeit it will be reasonably lower than in previous years. However, anyone who pounces his/her hand on this cheap money will run to the parallel market and buy forex and service the loan by capitalizing on the exchange rate spiral whilst making massive profits in the process.
<h2>2. Financing of the 25% export retentions</h2>
The RBZ will retain 25% of the exports and is supposed to credit the account of the exporter with ZiG at the prevailing rates. In subsequent points below, I logically derive the problem:
(a) If we take an average annual export receipt of US$7.5 billion, it follows that the 25% export retention is US$1.875 billion. This amount must be converted into ZiG;
(b) The Governor indicated that the total reserve money balances are around ZWL$2.6 trillion, that is, around US$80 million;
(c) The question which arises is where is the Governor going to get the money to pay for the US$1.875 billion (i.e., US$156m per month) when the ZiG equivalent in the entire banking sector amounts to US$80 million, that is, half of the monthly export retention requirement?
(d) In this puzzle, it is my humble view that there is no scope to give exporters financial instruments such as Treasury Bills (TBs) because exporters are already under dire stress as a result of falling commodity prices. The Governor will be forced to print money to fund the forex retained from exporters (i.e., US$156m per month) and destabilise the rate in the process.
<h2>3. Export retention and non-disbursement of auction funds saga</h2>
On 8 April 2024, the Governor issued Exchange control directive RZ56/2024 which declared that:
(a) Outstanding auction allotment areas which have been accumulated by the RBZ for several weeks will be converted into a 2 – year ZiG denominated investment (TBs) at the prevailing exchange rate and will earn an annual interest rate of 7.5%;
(b) All outstanding payments for the foreign currency purchased by Treasury under the 25% surrender requirement will be converted into 1 – year ZiG denominated investments (TBs) at the prevailing exchange rate and will earn an annual interest rate of 7.5%;
This is a saga and an unprecedented move by the apex bank. It introduced the auction system and businesses participated in it with the faith that everything was under control only to realise later that they could not get back their monies.
<h2>THIS IS NOT RIGHT.</h2>
This has massive implications for businesses from different angles:
(a) This is a direct violation of property rights which is synonymous with appropriation of business monies. This is tragic. It raises despondency and worsens the trust and confidence levels which are required to foster the acceptability of the ZiG;
(b) These funds are obviously part of the working capital of the affected businesses. This means that a number of companies are under serious stress – their ongoing concern is threatened. @ReserveBankZIM 
this is WRONG.
(c) The Governor categorically made it clear that these outstanding balances will be converted at the prevailing exchange rate of USD/ZiG, that is, at ZiG13.56 (i.e., ZWL$33,882.72) to USD yet some of these balances were held by the central bank when the rate was ZWL$6,000 (as at December 2023), that is, ZiG2.4. This effectively means that on 8 April 2024, when the directive was issued by the esteemed Governor, capital of businesses was eroded by the Governor’s directive by more than 6 times – business working capital is gone before we factor in further erosions which will be caused by inflation and exchange rate volatility in the next 2 years. For starters, the 7.5% interest rate stipulated for these funds is a mere joke to say the least. At the end of the tenure of these instruments, the value of these monies will be nothing (zuda chairo). If I was sitting on the boards of these affected companies, I would ask them to write off this debt and count their losses.
<h2>4. Decision to Convert Excess ZiG Balances into Non-Negotiable Instruments</h2>
The Governor’s decision to convert the excess liquidity held by banks to non-interest-bearing non-negotiable certificates of deposits (NNCDs) with a view to mop excess liquidity will entrench dollarisation and kill ZiG.
This policy directive is coming into effect against the background of the fact that the bank balances of the ZiG and USD stand at ZWL$2.6 trillion (equivalent to US$80 million) and US$2.4 billion, respectively.
Instead of the Governor promoting the use of ZiG by encouraging lending towards the productive sector, he is mopping the little ZiGs leaving the USD balances dominating the banking sector. In this process, he is effectively promoting the USD and killing ZiG
<h2>5. Continuation of the Gold – Token (ZiG)</h2>
The question which is boggling the minds of many is how are the gold tokens going to be funded considering the fact that RBZ is still issuing the tokens and the cumulating sales of the gold tokens are approaching 1000kgs, that is, one (1) tonne of gold? Is this one tonne of gold part of the 2.6 tonnes of gold which is backing the ZWL$2,6 trillion?
The RBZ must come out clean on this as this is killing the little confidence remaining.
<h2>6. Excess Liquidity from Treasury</h2>
The funding model used by Treasury to pay for infrastructure development is very problematic and is anti-ZiG. As long as the Treasury pays contractors with ZiG, the exchange rate will continue to run away as these ZiGs are offloaded on the black market. It is as simple as that.
Instead of GOZ sending the police after the money changers, the Treasury must close its tape. The police and other arms of govt have no capacity to arrest the actors in the black market – can’t arrest 7 million people in the informal sector.
On a separate note, isn’t it that the GOZ is exposing itself by setting the police on money changers? If GOZ has enough gold and foreign currency reserves, why is it going after money changers, after all, there is tight liquidity.
<h2>7. Confidence</h2>
As a country, for the last 26 years (i.e., from 14 November 1997) we lost several currencies (ZWD, USD, Bond note, RTGSs, ZWL, etc) and in the process we suffered massive losses in respect of jobs, savings, pensions, capital, medical aid, etc. Life has become unbearable. We suffered enough. As they say, once beaten twice shy, we are not taking any chances.
Citizens’ and businesses’ trust in a currency is driven by the government of the day – if GOZ refuses the ZiG, how can it expect us to accept the same currency?
The Governor’s BIGGEST MISTAKE was to declare that he would not force ZiG on fuel stations.
His blunder was complimented by Treasury’s reluctance to accept ZiG in respect of government services (such as passports) &amp; payment of duties, taxes, fees and levies. GOZ should have simply enforced the use of a multi-currency regime in all its services and payment of duties, taxes, fees and levies. As it stands, ZiG is an orphan which has been rejected by its biological parents (GOZ).
If the biological parents of ZiG are refusing to take care of their own child ZiG, what motivates us (citizens) to parent this orphan? Honestly, what concerns a bird with a toothpick if it has no teeth?
Still on confidence, the biggest undoing of the Governor was bad-mouthing his predecessor (ref quasi-fiscal financing and “entertaining complaints”) and his failure to avail the ZiG notes on time and exposed the public to unfair pricing caused by lack of change.
If it is true that @DrJPMangudya was giving in to pressures from GOZ, what makes him think that we will trust his “not under my watch” mantra will pass the test of time at @ReserveBankZIM?
This, together with the cessation of payment platforms which negatively affected the general public to transact, worsened the confidence level – people are angry. This situation is worsened by the fact that there were no extensive consultations which were carried out by the RBZ.
The issue of currency sensitivity was no longer an issue because President @edmnangagwa had already indicated that his government was going to introduce a structured currency.
He gave policy direction, right? At that point, RBZ should have hit the ground and held stakeholder consultations across the country (town hall meetings, community meetings, dialogue with businesses and technocrats).
These consultations were supposed to be heart-to-heart consultations because they were supposed to be built on the understanding of the pain which citizens and businesses went through as a result of the currency crisis.
Most importantly, RBZ was supposed to listen to everyone’s fears, and concerns and give them assurances. These assurances must be reflected in GOZ policies.
As it stands, the RBZ ambushed us and they want us to run with the ZiG when we have so many fears and have not cared to talk to us and build consensus so that we walk this ZiG journey together.
<h2>8. Absence of robust structural policies</h2>
The ZiG must be anchored by production. Structural policies such as industrial, agricultural and trade policies must be recalibrated with a view to building a productive, exporting and prosperous economy. We spend over US$4 billion annually importing commodities which we can produce locally produced: cereals, fruits and vegetables, soyabean, wheat, toothpicks, chewing gums, pampers, tissue and paper, etc.
This tells us that we need to relook at our policies with a specific focus on substitute imports. Likewise, the fact that 92% of our exports are constituted by commodities [minerals (70%) and agricultural products (22%)], tells us that we need to recalibrate our industrial and export policies with a view to changing our exports towards diversified and value-added exports.
It is on the basis of the foregoing submissions that I have serious reservations about the success of ZiG.
Those who are close to Cde Mutsvangwa please tell him that I am humbly asking him and his party to allow me to enjoy the fruits of our independence by allowing me to exercise my constitutional rights – freedom of expression.
In the same token, please tell him that I am just a humble guy from Chimanimani who has one goal – dying to see a prosperous Zimbabwe and my approach is centred on providing independent and incorruptible comments on fault lines in our policies so that GOZ can consider them for policy improvements.
</blockquote>
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Unpacking Why ZiG Will Fail - Gift Mugano

Opposition politician <a href="https://pindula.co.zw/Elisabeth_Valerio">Elisabeth Valerio</a> has said the introduction of a new currency, Zimbabwe Gold (ZiG) will not address the country’s economic challenges without political consensus, the creation of a safe investimate climate, and transparency and accountability, among other issues.
Reserve Bank of Zimbabwe Governor <a href="https://pindula.co.zw/John_Mushayavanhu">John Mushayavanhu</a> announced the launch of the structured currency on 05 April 2024.
According to the Central Bank, ZiG’s value is anchored by equivalent value in precious minerals, primarily gold, or foreign exchange held for that purpose by the RBZ.
Valerio, the only female presidential candidate in Zimbabwe’s 2023 harmonised elections, said the country will not achieve currency stability without addressing the wider economic challenges of political instability, inconsistent and obscure monetary policies and the lack of confidence in Zimbabwe. She said:
<blockquote>
Whether currencies change or not – how our economy performs is what matters. High inflation and slow growth have been persistent problems affecting the value of our currency. An overnight change in currency cannot allay these.
The resources and wealth of Zimbabwe must benefit the citizens of Zimbabwe. Furthermore, economic resilience must be strengthened through diversification and investment in key sectors.
As UZA, we’re committed to advocating for policies that promote stability and we are working to restore and strengthen Zimbabwe’s industrial and economic capacity.
This includes advocating for political stability and transparent economic strategies; encouraging investment; and capacitating entrepreneurs.
By working together, we can build a stronger, more stable future for Zimbabwe.
</blockquote>
The leading opposition presidential candidate in last year’s harmonised elections, Nelson Chamisa, also condemned the introduction of the structured currency, saying “A bond note by another name will not fix our challenges.”
Chamisa said that the nation requires systematic political reforms rather than focusing solely on currency restructuring.
He pointed out that currency reforms in the past have been unsuccessful, and he cautioned that the ZiG currency is likely to face challenges due to underlying issues such as “broken politics,” disputed elections, and contested national processes.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

ZiG Won't Address Zimbabwe's Economic Challenges - Valerio

<a href="https://pindula.co.zw/Farai_Maguwu">Farai Maguwu</a>, the founding Director of the Centre for Natural Resource Governance (CNRG), has suggested that the leaking of Fifi’s nudes, which has become a topical issue on social media, is meant to divert Zimbabweans’ attention from the Government’s shortcomings in the introduction of the new currency, Zimbabwe Gold (ZiG).
The central bank launched ZiG on Friday last week but the new currency has already lost value significantly on the black market as illegal money changers are reported to be selling the greenback for ZiG18, instead of the official rate of US$1:ZiG13.4.
This week, comedienne <a href="https://pindula.co.zw/Mai_Titi">Mai TT</a> and her daughter Fifi (17) have been trending because of nude pictures of the latter which were posted online.
Shockingly, Mai TT defended her daughter and encouraged her to dump more nudes online.
This may not be surprising to some people because Mai TT’s nudes were also leaked last year.
Posting on X, Maguwu asked if it is a mere coincidence that Mai TT’s nudes were leaked during the airing of the Al Jazeera documentary, Gold Mafia last year, and her daughter’s were leaked online when the launch of the ZiG currency has stirred debate. Said Maguwu:
<blockquote>
Fifi nudes. Do u remember that after the 1st 2 or 3 episodes of the Gold Mafia documentary, Mai Titi ‘leaked’ her own nudes to divert public attention? Is it a coincidence that as the public is reacting to ZiG, Fifi feeds the public with her own nudes again? And Mai Titi defends her.
</blockquote>
“Gold Mafia” was a four-part documentary aired by Al Jazeera’s investigative unit which exposed an alleged shadowy global economy, where gold serves as a conduit for turning dirty cash into seemingly legitimate wealth.
The investigation focuses on Southern Africa, where gold smuggling gangs operate, enriching themselves while exploiting their nations.
According to the documentary, criminals, working with government officials, use a complex web of companies, counterfeit identities, and fake documents to launder hundreds of millions of dollars.
For instance, smuggled gold from Zimbabwe finds its way to Dubai and then gets exported to major gold hubs like Switzerland and London.
“Gold Mafia” alleged that high-ranking officials from Zimbabwe are involved in smuggling and money laundering.
Meanwhile, in a Facebook post, Mai TT said she was shocked to discover that her daughter, Fifi, had been blackmailed by her former boyfriend for a whole year over the nudes. She wrote:
<blockquote>
I got to find out that she was under threats the whole of last year but never told me about it. She would pay this guy not to release until she couldn’t afford anymore.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

"Fifi Nudes Leak Meant To Divert Attention From Unpopular ZiG"

Zimbabwean-born economist, Gareth Horsfield, says the recent introduction of a new currency, Zimbabwe Gold (ZiG) to replace the Zimbabwe dollar, is akin to putting the cart before the horse as the country does not have the conditions to sustain it.
Horsfield said that Zimbabwean authorities should first restore confidence in the financial system, put in place strong economic fundamentals, and increase production to reduce dependence on imports which drain foreign currency, among other things for a new currency to have any chance of success. He wrote:
<blockquote>
<h2>Zimbabwe’s New Structured Currency: Putting the Cart Before the Horse</h2>
Introducing a new currency in a country comes with a complex set of challenges and considerations, particularly in an economy like Zimbabwe, which has faced significant financial instability over the years.
There are several reasons why introducing a new currency in Zimbabwe may not yield the expected outcomes or could potentially exacerbate existing economic issues.
<h2>Historical Context and Economic Instability</h2>
Zimbabwe has a history of hyperinflation, most notably from 2004 to 2009, which led to the abandonment of the Zimbabwean dollar in favour of a multi-currency system that included the US dollar and the South African rand.
This history plays a crucial role in understanding the scepticism surrounding the introduction of a new currency.
Hyperinflation led to a loss of confidence in the local currency, making recovery and re-establishment incredibly difficult.
<h2>Lack of Confidence in the Financial System</h2>
Confidence in the financial system and the stability of a currency is crucial for its acceptance and functionality.
Given Zimbabwe’s history of hyperinflation, the public’s trust in any form of local currency has been severely eroded.
Introducing a new currency requires building this trust anew, a process that can take years, if not decades, of stable economic policies and practices, something Zimbabwe has struggled with.
<h2>Economic Fundamentals</h2>
For a new currency to be successful, there needs to be a strong and stable economic foundation. This includes a stable inflation rate, robust fiscal policies, and strong governance structures to manage the economy effectively.
Zimbabwe’s economy has faced challenges such as high unemployment, a decrease in industrial production, and governance issues that undermine the potential success of a new currency.
<h2>Dependency on Imports and Foreign Currency</h2>
Zimbabwe’s economy is heavily dependent on imports for basic goods and services, which necessitates a strong demand for foreign currency.
Introducing a new local currency could lead to a devaluation against stronger foreign currencies, increasing the cost of imports and potentially leading to inflation.
This reliance on imports and the need for foreign currency make it difficult for a new currency to establish itself as a stable medium of exchange.
<h2>Social and Political Challenges</h2>
The introduction of a new currency is not just an economic issue but also a social and political one. It requires the buy-in from various stakeholders, including businesses, the general public, and international partners.
In Zimbabwe, where political tensions and social unrest have been prevalent, achieving this consensus is challenging.
Political instability can further undermine confidence in any new currency, making its adoption and acceptance more difficult.
<h2>Comparative Examples</h2>
Looking at other countries that have successfully introduced new currencies, it is clear that certain conditions need to be met, such as political stability, strong economic fundamentals, and public confidence.
These conditions are not easily met in Zimbabwe’s current context, making the successful introduction of a new currency more challenging.
In conclusion, while the idea of introducing a new currency in Zimbabwe might seem like a potential solution to its economic problems, the realities on the ground present significant obstacles.
Historical economic trauma, lack of confidence in the financial system, unstable economic fundamentals, dependency on imports, and social and political challenges all contribute to the scepticism around the success of such a measure.
For a new currency to have any chance of success, Zimbabwe would need to address these underlying issues comprehensively and convincingly, a task that requires time, political will, and economic stability.
</blockquote>
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"Zimbabwe Lacks Fundamentals To Sustain New Currency"

Finance Minister Mthuli Ncube has been urged to promptly present fiscal measures that complement the monetary policy announced by Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanhu last week.
The 2024 Monetary Policy Statement outlines key strategies and measures aimed at achieving currency stability. These include the introduction of a structured currency called ZiG, backed by reserves and royalties.
Economist Gift Mugano suggests that Minister Ncube should not delay presenting his mid-term budget review in July or exclusively favour the use of USD over ZiG. He said:
<blockquote>
The Minister of Finance must address the following:
1. Directing all local payments by the GOZ to be in ZiG;
2. Directing all duties, taxes, levies and fees including government services such as passports, birth certificates, death certificates, etc to be in ZiG;
3. Directing fuel stations to accept both ZiG and USD – this must enforced in line with the spirit of the use of a multi-currency regime;
4. Recalibrating the financing model for the public infrastructure with a view to moving away from using cash to long-term finance e.g., diaspora bonds;
5. Setting aside a budget for the liquidation of the 25% export retention surrender requirement view a view to stop the RBZ from printing money;
6. Present a new budget statement in ZiG – this budget must include a supplementary budget with a view to accommodate the exchange movements as the current has been eroded by exchange rate upheavals. This submission is grounded on the fact that the fact that the exchange rate shot from ZWL$6,000/US$1 when the 2024 budget was presented to ZWL$33,882.72 as of 5 April 2024.
7. Downward review of taxes and elimination of some tax heads such as the sugar tax – the current tax regime is causing inflation in USD which means that inflation in ZiG will be massive.
</blockquote>
The annual inflation rate in Zimbabwe has recently risen, reaching an over-one-year high of 55.3% in March 2024. This increase follows a rate of 47.6% in February.
The depreciation of the now-discarded Zimbabwe dollar played a role in this surge. Since the beginning of the year, the Zimbabwe dollar experienced a decline of more than 70% against the US dollar before being replaced by ZiG last week.
The introduction of ZiG marks Zimbabwe’s sixth attempt at creating a new currency since 2008.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Mthuli Ncube Urged To Present Fiscal Measures To Complement Monetary Policy

Opposition politician, Nelson Chamisa asserts that Zimbabwe requires political transformation rather than mere currency adjustments.
In response to the introduction of the new Zimbabwe Gold (ZiG) currency by Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanhu, Chamisa said that the nation requires systematic political reforms rather than focusing solely on currency restructuring.
He pointed out that currency reforms in the past have been unsuccessful, and he cautioned that the ZiG currency is likely to face challenges due to underlying issues such as “broken politics,” disputed elections, and contested national processes.  Said Chamisa:
<blockquote>
A currency is a bundle of trust and confidence. A currency is not a currency without confidence and value.
Money represents a collective trust in the stability and reliability of the government. Its value is derived from the amalgamation of this confidence.
Instead of introducing a structured currency, we need a conversation that produces a Citizens-backed structured political change and new government.
A bond note by another name will not fix our challenges. A currency is a bundle of confidence. Confidence is a product of good politics and good leadership.
Currency change has failed before. And it surely will fail again. All this, is because of broken politics, disputed elections and contested national processes.
In recent years, all these currencies failed because of bad politics: ZW$, USD, Bond note, RTGS, ZWL$, Gold coins, and ZiG. It is given that the new currency will fail again because of BAD POLITICS.
Currency reforms will not guarantee currency stability but good politics will lay the foundation for currency stability
Zimbabwe needs a political and democratic leadership change, not a currency change.
No amount of currency change will pivot the nation into prosperity and boom.
</blockquote>
Chamisa asserted that Zimbabweans’ trust in the ZANU PF-led government has eroded, leading to a broader lack of faith in all aspects of the government’s functioning.
He advocated for a transformation in the country’s political landscape and encouraged citizens to seek the face of God as a remedy for Zimbabwe’s economic hardships. Said Chamisa:
<blockquote>
The citizens have zero confidence in the leader of the country. Once the citizens lose confidence in an administration they automatically lose confidence in all that it stands for or represents. Nothing short of a TOTAL CHANGE and seeking the face of Our God will rescue the nation’s fortunes.
</blockquote>
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ZiG Is The Bond Note By Another Name - Chamisa

Zimbabwe’s newly-introduced structured currency, known as ZiG, short for Zimbabwe Gold, failed before it was even launched, an economic commentator has said.
Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanhu on Friday, April 05, announced the introduction of ZiG, which replaced the worthless Zimbabwe dollar.
However, economist Gift Mugano said the new currency failed before it was launched mainly because it was not backed by sufficient reserves.
Mugano said the genesis of Zimbabwe’s currency crisis started on 14 November 1997 when the ZW$ crashed – the Black Friday.
Since then, the ZANU PF-led Government moved from the Zimbabwe dollar (the currency adopted at independence in 1980) to USD (in 2009), Bond (in 2016), RTGS (2019 – February), ZWL$ (2019 – June), back to USD in 2020 and now to ZiG, although the latter is part of a multi-currency system. Said Mugano:
<blockquote>
At each and every point when these currencies were introduced, we witnessed massive disagreements clearly drawn on political lines and serious disregard for the experts’ views.
Like now, we are telling you that ZiG will fail dismally and you are busy defending a currency which was dead before it was announced.
So, we haven’t learnt anything in the last +26 years of the currency crisis?
</blockquote>
One Nyasha Musandu said the introduction of ZiG will not succeed as the Government lacks sincerity. She wrote on X:
<blockquote>
It worries me how many people actually think the government is being sincere with this ZiG thing. I see so much analysis and justification, and I just think to myself, we have been here before so many times. What are we failing to learn?
</blockquote>
Meanwhile, in a post on X, Mugano outlines seven factors which he believes will undermine ZiG namely (1) a large informal sector (+80% of the economy); (2) drought of confidence; (3) drought of production; (4) printing of money &amp; excessive liquidity caused by treasury; (5) lack of national cohesion and consensus; (6) lack of policy clarity; and (7) external shocks (drought &amp; subdued commodity prices). He added:
<blockquote>
The MPS presented by the new Governor today reminds me of the MPS which was presented by Dr JP Mangudya on 20 February 2019 where the later introduced the RTGS as the new currency with a starting exchange rate of ZW$2.5: US$1 (interbank rate/market).
Immediately, the exchange rate started to run away and today the ZW was trading at ZWL$40,000: US$1.
This is exactly what is going to happen to ZiG!
Over and above the 7 points raised above, the existence of the USD in the market (although unavoidable), is the worst enemy of ZiG. ZiG can’t compete with the USD in the market. 
As long as ZiG is not accepted/used exclusively at fuel stations, passport offices, ZIMRA (payment of duties &amp; taxes), schools, tuckshops, etc then forget about ZiG.
Most importantly, if individuals/anyone can’t walk into a bank and buy /sell foreign currency the same way they do in the informal market/black market at an attractive rate, then forget about ZiG.
Another serious threat to ZiG which requires special attention is excessive liquidity from the Ministry of Finance going towards payment of contractors &amp; civil servants salaries. The approved 2024 budget stood at ZWL$58.2 trillion albeit it is eroded by inflation &amp; exchange rate spiral.
The RBZ in its MPS presentation, placed emphasis on the fact that the total reserves in its coffers amount to US$285 million are more than 3 times the current reserve money, i.e., ZW$2.6 trillion (equivalent of US$90 million). This is a correct assessment.
However, the RBZ is obviously not factoring in the impact of the excessive liquidity from the Treasury. Obviously, with the exchange rate movement which has seen the official exchange rate slipping from ZWL$6K from the day when the 2024 budget was launched to ZWL$25K as of this week, it means that our budget shrunk by more than 4 times in 3 months.
The converse is true – it is implied that the budget has moved from ZW$58.2 trillion by four (4) times – so we may be talking of a realistic budget of ZWL$240 trillion.
The question which arises is that when RBZ is presenting its MPS, isn’t prudent that it must also raise a point of advice to the Treasury (as an advisor to GOZ) on the possible implications of liquidity on the exchange rate.
Likewise, isn’t it fair to request the RBZ to give us a balanced assessment of the impact of reserve money &amp; excess liquidity from the treasury on the exchange rate rather than concentrate on the reserve money supply only?
I would like to argue that the national budget has always been and will always be the biggest threat to the exchange rate stability – more than money supply.
The question which arises again is whether the US$285 million is enough to cover USD demand (demand for value preservation) from civil servants &amp; contractors. The answer is a big no!
ZiG = bond note = ZWL = RTGS = FAILURE
</blockquote>
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"ZiG Failed Before It Was Launched"

Economist Gift Mugano remains steadfast in his assertion that the gold held by the Reserve Bank of Zimbabwe (RBZ) is inadequate to support the newly introduced structured currency, ZiG, even in light of anticipated forex inflows from exports, diaspora remittances, and credit, among other sources.
Governor John Mushayavanhu, on Thursday, April 4th, stated that the country possesses 2.5 tonnes of gold and substantial cash reserves to anchor ZiG. However, during a subsequent address to journalists in Harare on Friday, Mushayavanhu clarified that ZiG’s foundation rests on a composite basket of reserves, including foreign currency and precious metals stored in the central bank’s vaults.
Despite this, Mushayavanhu criticized economic commentators who, via social media, expressed doubts about the sufficiency of gold reserves to bolster ZiG. Said Mushayavanhu:
<blockquote>
ZiG shall at all times be anchored and fully backed by a composite basket of reserves comprising foreign currency, and precious metals mainly gold received by the reserve bank as part of in-kind royalties and kept in the vaults of the bank.
Foreign currency balances will be accommodated through market purchases from the 25 per cent surrender as well as the sale of some precious metals that may not have been received in the form of gold, for example, platinum.
As of today, the 5th of April 2024, the Reserve Bank’s reserve asset holdings comprise plus or minus 100 million US dollars in Nostro balances. This is the foreign exchange that we already hold.
We also have 2,522 kilogrammes of gold worth US$185 million of which one tonne of that gold is held offshore and the balance is onshore.
Those of you who were here yesterday would have seen that out of the need for transparency, and also for me to confirm to His Excellency that I have taken over what Dr [John] Mangudya left in the central bank, we opened the vaults of the central bank and you were able to see the gold that we are holding.
I saw that on social media some of you were saying, “Oh, you have 2.5 tonnes of gold”, you were converting it and coming up with a number and converting it to import cover.
And then I said to myself, “Are these people real economic analysts? Don’t they know that Zimbabwe is 80% to 85% dollarised?”
Therefore, we already have 85% of the money circulating in this country as foreign exchange, before we even factor what is going to be converted to ZiG.
</blockquote>
Below is Mugano’s full response to Mushayavanhu:
<blockquote>
I still insist that the US$285m is a drop in the ocean. I listened to the Governor’s response with much respect. However, I would like to argue my case as follows:
The submission by the Governor narrowly focuses on the view that the economy is dollarised. Yes, from a definition point of view, the economy is dollarised. 
However, the fact of the matter is that the statistics we are using as indicators of dollarisation such as total deposits in the bank in USD vs ZWL and loans in USD/ZW (which is +96% in USD in terms of loans) are not a correct yardstick of the intensity of dollarisation because the informal sector is not banked – only 20% of the economy is banked.
</blockquote>
In addition, credit to the private sector as a share of GDP is merely 8.8%. In essence, 96% of 8.8% of the economy is the total loans in USD which have been given out by banks. This is a small share of the total currency in circulation. Hence, using the USD/ZW loan ratio is somehow misleading.
<blockquote>
For argument’s sake, if the economy is +96% dollarised, why was the rate running away in recent weeks? Is the chaos in the foreign exchange market caused by 4% of ZWL? The answer is a big no.
Alternatively, are we saying that the national budget which runs into tens of trillions of ZWL plus private sector own budgets in ZWL constitutes 4% of total cash in circulation? No.
I believe there is a significant share of ZWL in circulation, which may be in the region of 30% of the total currency in circulation due to the budget factor. 
There is so much excessive liquidity which is being pumped into the market by the Treasury through payment of contractors and civil servants. In addition, the private sector also makes payments in ZWL (e.g., for salaries &amp; services/goods)
The recipients of the ZWL payments dump the ZWL on the black market to preserve their earnings or secure the USD which is required at passports, fuel stations, ZIMRA, tuckshops, schools, etc. This trend will continue as long as ZiG is not accepted at passport offices, fuel stations, ZIMRA, tuckshops, schools, etc.
In addition, in his MPS which he presented today, the Governor emphasised that the RBZ has more than 3 times reserves to cover the reserve money supply which is ZW$2.6 trillion (equivalent to US$90 million). 
He was obviously trying to assure the market that there were enough reserves to meet forex demand. However, his submission is narrowly focusing on money supply as the main driver of the exchange rate volatility which is wrong.
Excessive liquidity coming from the budget is the major destabilising factor of the exchange rate instability in Zimbabwe.
Again, for argument’s sake, is our Governor by any chance insinuating that the runaway exchange rate witnessed in the last few weeks is the ZW$2.6 trillion? I would like to argue that the disbursements from the ZW$58.2 trillion budget are a big factor.
Again, the question which arises is whether the US$285m is enough to guarantee demand for forex, that is, for both import and value preservation. The answer is a big no.
What I am sure of is that in the coming few days, the Governor will understand that beyond managing money supply, he must worry about excess liquidity from the Treasury. Verily, verily, he will appreciate that I am a real economic analyst.
Let me end by asserting that if the budget is in USD, my view that we need at least 6 months on import cover would be invalid.
In view of the fact that the budget is in ZWL, we need at least US$4.5 billion in reserves so that anyone who walks in the bank can change money the same way we do in the black market.
Crazy as it may look, it is the only way to kill the black market and restore confidence. Liberalising the exchange rate without allowing people &amp; anyone who wants USD to access it from the formal banks, will not guarantee the success of ZiG. In addition, ZiG must be exclusively used at passport offices, fuel stations, ZIMRA, tuckshops, schools, etc.
It is my prayer that the Governor will have an open door policy like his predecessor @DrJPMangudya so that we continue the dialogue.
Ndaedza kutaura semunhu mukuru kuti tivake nyika yedu. Nyaya yemari chokwadi yanesa. Tave kufanirwa kuikunda hondo yekuti mari ive nesimba.
Hatingaiti mari inochinja chinja kakawanda gore risati rapera hazviendesi nyika mberi kana kukurudzira vaya vanoda kuita ma investments muno. Saka ngative nemweya wakanaka wekuonesana murugare.
Ndatoona Governor vakutotanga nekuda kubatwa nemweya we social media kuda kutinyomba haiwa hazvinzwarwo ivo ndiGovernor hofisi yavo haubvumiri izvozvo ngavasashoropodza maprofession edu asi vatambe nenyaya iri mudariro chete.
Pamwe chokwadi vanogona kunga vari right pakuti mari iri mudura rayo inokwana. Hazvina kuipa vanongotiudza murungare ndokuti nyika ivakike. Hakuna muziva zvose.
Isu mapurofesa chedu kubvonga chete anodyawo wadya kushata kana nhapitapi vachadudzira ivoooo sekuimba kwakaita Baba Shero @alickmacheso3.
Kunyangwe hedu tichifanirwa kuudzana murugare, hofisi yedu yakati sunungukei kuti titambanuke (flexibility) pakutaura kwedu kupfuura Governor wedu.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Mushayavanhu, Mugano Clash Over ZiG & RBZ Gold Reserves

In an apparent response to Government spokesperson Nick Mangwana, who accused unnamed individuals of undermining Zimbabwe’s currency and sabotaging efforts to stabilize the economy, economist Professor Gift Mugano suggested that it is the government’s actions that undermine the Zim dollar.
Posting on X, Mangwana, who serves as the permanent secretary of the Ministry of Information, Publicity, and Broadcasting Services, stated that some citizens are on a “crusade” to undermine all government efforts aimed at stabilizing the economy. <a href="https://x.com/nickmangwana/status/1775499882066833542?s=20">He said</a>:
<blockquote>
Why would anyone doggedly make it their mission to fight Zimbabwe’s currency? Why would they turn themselves into a crusader in an effort to sabotage all the endeavours to stabilize things in Zimbabwe? Rank Treachery.
</blockquote>
In a separate post, Mugano asserted that excessive printing of money and the unresolved confidence crisis emanating from actions of monetary authorities are among the enemies of the Zimbabwe dollar and the yet-to-be-introduced structured currency. <a href="https://x.com/gift_mugano/status/1775597088241328624?s=20">He said</a>:
<blockquote>
The enemies of our currency &amp; the so-called structured currency are:
1. Excessive printing of money &amp; excess liquidity caused by command agriculture; wrong financing model on roads &amp; key infrastructures;
2. A dominant informal sector which is governed by informal rules &amp; has no regard for govt policies – the informal sector has its own governor, mattress bank, minister of finance, etc
3. devastating drought &amp; subdued commodity prices which have a combined effect of reducing the availability of USD liquidity
4. unresolved confidence crisis caused by loss of capital/pensions/savings/insurance/investments as a result of incessant currency collapse &amp; currency crisis
5. lack of policy clarity – our economic problem is centred around structural rigidities which require structural policies (industrial, trade and agricultural policies). We haven’t seen much activities &amp; media coverage on these policies in the same way we have seen visibility &amp; pronouncements on monetary &amp; fiscal policies. In short, our structural policies are not up to scratch.
6. drought of production – the best way to defend our currency is to institute policy measures and conditions that promote a productive economy (e.g., sound structural policies, working markets, market-led economy, sound financial sector, stable political environment powered by rule of law, constitutionalism and strong institutions).
7. Broken politics – we have invested so much energy in disunity &amp; hate speech instead of fostering peace, unity, tolerance and love. We are allergic to national dialogue, social contracts, divergent views, etc. Ironically, we expect to see flawless implementation of public policies and attainment of the desired economic goals when we are divided.
Structured currency = bond note, gold coins/gold token/ZiG. Bond note &amp; ZiG were/are local currencies backed by USD &amp; gold, respectively but failed dismally because of the reasons I mentioned above.
This is why I am convinced that a local currency or structured currency will always fail as long as the factors raised above are not adequately addressed.
</blockquote>
Businessman Kuda Musasiwa characterised the structured currency as a “mubobobo” currency, referring to a traditional medicine acquired by men that allegedly enables them to rape women without any physical contact. He wrote:
<blockquote>
I have never physically touched a $50 note in Zimbabwe. I’ve seen it on Twitter. I ain’t never seen a real gold coin from RBZ. I saw it on Twitter.
Not even when I jumped on a combi from Hatcliffe to Helensvale did I see anyone pay in a local note? I’m in tech and I have NEVER experienced a ZiG.
I tell you NOT one lie, PaDust in Hatcliffe, when we pick up our daily cash from the ladies who horder from the Fresh Farm every morning, not ONE has offered to pay in ZWLs in the whole of 2024 and we are now 4 months in.
I can admit that sometimes in the Trade centre some guys will offer to “swipe” for me when shopping … Offering a better “rate”. But my maths is bad and can’t be fucked most of the time to even bother.
Don’t even know how they work. 🤣These are fictional currencies. Like the one coming. How are our leaders so out of touch?
Mubobobo currencies.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Enemies Of Zimbabwe Dollar, Structured Currency - Prof Mugano

According to prominent Zimbabwean journalist Hopewell Chin’ono, Zimbabwe’s poverty is not inherent; rather, it stems from inadequate governance. This perspective emerged after President Emmerson Dambudzo Mnangagwa declared a state of disaster in response to the drought that severely impacted the 2023/24 summer cropping season on Wednesday, April 03.
Zimbabwe becomes the third African country to declare the current drought a national disaster, following Zambia and Malawi.
On his social media platforms, the prominent government critic Hopewell Chin’ono pointed out the irony of President Mnangagwa allocating trucks to traditional chiefs and ZANU PF social media propagandists while the nation grapples with a severe cereal deficit. He wrote:
<blockquote>
The President of Zimbabwe has declared a state of national disaster, a euphemism in this case for saying there isn’t enough food to feed the nation.
This ironically comes after the president distributed 100 trucks to traditional chiefs, and has started distributing cars to ZANU PF social media propagandists who helped in his election campaign.
A surrogate close to the president, convicted criminal, Wicknell Chivhayo, has also been distributing high-end cars to greedy musicians who support the ruling party, ZANU PF.
It is indeed strange that after this obscene public display of misplaced extravagance, the president is now asking ordinary citizens both at home and abroad to donate money towards something caused by his government’s lack of planning, yet he has been splurging on cars.
</blockquote>
Chinon’o boldly exposed the ZANU PF-led government’s deception, revealing that their claim of sufficient grain reserves in the country was far removed from reality. He said:
<blockquote>
The severe impact of the ongoing drought would have been mitigated by maize reserves, but the government lied that it had enough reserves when it didn’t, only to be exposed that it was buying maize weekly from South Africa by that country’s Head of International Diplomacy on Twitter.
Mnangagwa stated that over 2.7 million Zimbabweans need food aid. He added that Zimbabwe will face a grain deficit of 680,000 tonnes.
Zimbabwe’s agricultural industry collapsed when ZANUPF removed land tenure and embarked on its never-ending removal of commercial farmers, both black and white, from farms and handed them over to ZANU PF cronies who couldn’t farm.
</blockquote>
Chin’ono has emphatically stated that Zimbabwe currently grapples with the world’s highest inflation rate. 
Furthermore, the local currency has been rendered virtually worthless due to corruption within the central bank and the glaring incompetence attributed to ZANUPF’s legendary inability to govern, said Chin’ono, adding, “Zimbabwe is not poor, it is only poorly governed!”
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Declaration Of State Of Disaster: Zimbabwe Is Not Poor, But Poorly Governed - Chin'ono

Economist Professor Gift Mugano has broken his self-imposed silence on Zimbabwean economic matters, and this time he dismisses the government’s proposed “structured currency” as merely a revival of previously unsuccessful initiatives.
In January this year, Mugano said he would no longer comment on Zimbabwean economic matters after he was repeatedly labelled an “anti-economic progress” person by ZANU PF.
However, in an interview with <a href="https://www.newzimbabwe.com/nothing-new-here-economic-problems-will-persist-expert-slams-introduction-of-new-structured-currency/">NewZimbabwe.com</a>, Mugano pointed out several fundamental weaknesses of the government.
In response to inquiries about whether the structured currency could mitigate the currency crisis, Mugano emphatically rejected the idea, asserting that the new currency would not contribute to stability.
Mugano underscored the shortcomings of past endeavours, including gold coins, gold tokens, and the bond note supported by the African Export–Import Bank (Afreximbank). He said:
<blockquote>
Does the structured currency help us to address the currency crisis, the answer is no, and that is the V11.
Why didn’t these gold coins, gold tokens succeed in guaranteeing stability? Then why is a bond note that is backed by AFRI-EXZIM bank failed to guarantee 1:1?
So there is nothing new about what they are talking about, they are just regurgitating the same things they are doing vocabulary nice terms but in reality that is just nothing.
They are not going to be launching anything new, the problems are going to continue full stop.
</blockquote>
Mugano asserted that the solution to Zimbabwe’s currency crisis is increased production, investments and savings. He said:
We have solutions there are measures, the first thing which we need to address is that a currency is dependent on production, so if you don’t produce as a country you can’t defend the currency.
<blockquote>
So the strength of the currency in any country is a reflection of the country’s production capacity, so the big elephant now is what do we need to do to raise production, we need savings and investments because the savings are identical to savings.
So then the second question is why do you need to have savings? If you are not saving you have no money you can’t create creation, in 1996 the savings GDP ratio was 25 per cent right now we are in negative 11% because the people are not saving money, right?
</blockquote>
Online publication, The Newshawks, reported the new currency will likely be launched by outgoing Reserve Bank governor John Mangudya this Friday.
Mangudya was officially replaced by John Mushavanhu who officially took over last week.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Structured Currency Will Not Address Currency Crisis - Mugano

Top lawyer Fadzayi Mahere has raised concerns over the Government’s plans to introduce a “structured currency.”
She argues that the lack of public education and the absence of a legal framework pose significant challenges to its implementation.
In February, President Emmerson Mnangagwa announced that the Government was actively working on a structured currency as part of their efforts to enhance currency and economic stability.
Reports indicate that the launch of this structured currency is imminent, coinciding with the appointment of John Mushayavanhu as the new Reserve Bank of Zimbabwe (RBZ) governor.
Fadzayi Mahere, sharing her thoughts on social media, advises the public to exercise caution. She points out that previous currency introductions in recent years have all faced challenges and ultimately failed. She said:
<blockquote>
Rule number one, if they mention anything to do with “1:1 gedye”, know we are heading for disaster. Last time they said that we ended up at 1:42000.
Rule number two, if they mention anything to do with “gold backing”, know it’s a scam. What happened to the gold-backed Ziggy jiggy? Did it stabilise the economy?
Rule number three, no legal framework, no legal tender. You don’t “launch” a currency like you’re launching a music album.
It is called “legal tender” for a reason. It must have the force of law. You can’t roll out something as important as money without a legal statute.
Rule number four, why the ambush? Why not give people notice of what you’re trying to do so you calm suspicion?
They have a knack for taking an economic idea and mangling it so it implodes – look no further than the forex auction that wasn’t an auction.
How many times do we need to learn the lesson that command economics does not work?
</blockquote>
Bulawayo Mayor David Coltart also warned that the proposed “structured currency” will face challenges unless the institutions overseeing its introduction and management regain public trust. He said:
<blockquote>
I have noted statements made recently that the current government intends to introduce a new currency this week with some alarm.
The solution to hyperinflation and a weakening currency does not lie in replacing it with a new currency.
The reason our present currency has performed so badly is that people DO NOT TRUST the institution responsible for regulating it.
The most important criterion in the running of any central bank is TRUST. Until TRUST is restored this new currency is doomed to fail as well.
TRUST is only created when those running the central bank are recognized professionals who have been appointed because of their integrity and demonstrable skills, not who they know.
TRUST is only created when there is total transparency and the central bank is demonstrably being run for the benefit of all, not just a small ruling clique.
</blockquote>
In recent years, the Goverment has introduced several currencies that include Bearer Cheques, Traveller’s Cheques, Agro-Cheques, Bond Coins, Bond Notes, RTGS, Zim Dollars, Nostro, Gold Token and ZiG.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

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