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

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

Business Leaders Urge RBZ To Reduce Regulatory Costs

The Reserve Bank of Zimbabwe (RBZ) has rejected calls from the business community to remove the Zimbabwe Gold (ZiG) currency from the country’s multi-currency regime.
On Tuesday, during a CEO Africa Roundtable (CEO ART) currency review breakfast meeting in Harare, CEO ART chairperson Oswell Binha argued that the ZiG had become a tool for arbitrage, causing more harm than good to the economy.
However, RBZ deputy governor Innocent Matshe countered this view, asserting that the ZiG is here to stay. Said Matshe (via <a href="https://www.newsday.co.zw/local-news/article/200033994/zig-must-go-business-but-rbz-thinks-otherwise">NewsDay</a>):
<blockquote>
Make no mistake about the ZiG, it is here and it is here to stay. Another thing that you need to remember is that the ZiG is not like the RTGS or the Zimbabwe dollar we used to have. The starting point here is that the country is not facing a currency crisis.
</blockquote>
Matshe also denied that ZiG was collapsing, saying instead, it was floating freely. He said:
<blockquote>
The Reserve Bank has allowed for greater flexibility in the interbank market.
The flexibility is what you wanted, and now you are saying that the ZiG is now in the graveyard. This cannot be called a crisis.
Let us not fool ourselves and think that just because there was a depreciation, the currency is collapsing.
</blockquote>
However, Economist and banker, Nigel Chanakira, who is also the past president of Zimbabwe Economic Society, said there was indeed a crisis. He said:
<blockquote>
What triggered what we are calling a crisis? We call it a crisis because we have a new currency that has features that promise us stability.
We have a new governor who said bad policies will not be done under my watch. I gave him the benefit of the doubt.
Only five months since the introduction, we have experienced a more than 40% devaluation of the ZiG. I think it’s astronomical.
</blockquote>
Binha remarked that the ZiG is facing a similar fate as its predecessors—the Zimbabwe dollar, RTGS dollar, and bond notes—which were all eventually scrapped. He said:
<blockquote>
So, deputy governor, let me start by provoking this conversation by calling for an immediate removal of the ZiG from the basket of currencies and allowing for the trading of other currencies until we get to such a time when we decide to have a stable currency.
We need to have time to have these serious conversations of a currency referendum involving everybody to navigate and decide which currency to use.
I think it is time that all economic players be given the opportunity to be involved and be able to make the right choices.
</blockquote>
Meanwhile, Economist Prosper Chitambara said the multi-currency regime should continue, but it must be accompanied by reforms aimed at restoring confidence and trust in the ZiG. Said Chitambara:
<blockquote>
A combination of monetary, institutional and fiscal reforms are critical in my view for the full restoration of confidence and trust in the local currency.
So, I think the current system is good without necessarily going either extreme to full de-dollarisation or full dollarisation.
</blockquote>
The value of ZiG plummeted in September this year, from ZWG13:US$1 dropping to ZWG27.44 to the US dollar on Thursday, 24 October. On the parallel market, ZiG is currently trading between ZWG40 and ZWG50 to the US dollar.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

The Reserve Bank of Zimbabwe doesn't want to remove the ZiG currency, even though some business people think it's causing problems. The RBZ says the currency is important and not collapsing. Some economists disagree and say there's a crisis because the ZiG has lost a lot of its value. Others say the multi-currency system should continue, but reforms are needed to build trust in the ZiG. The value of the ZiG has dropped a lot recently, causing concerns. Different people have different opinions about what should be done to fix the situation.

RBZ Rejects Business Calls To Scrap ZiG

Captains of industry have warned that more companies will collapse if the government continues disrespecting market fundamentals.
CEO Africa Roundtable board chairman Oswell Binha said markets are central in government decision-making. He said:
<blockquote>
These guys called CEOs are in trouble. The mortality rate of industry will continue. I don’t know what the accountants are doing because we need to get the reports.
And those financials need to be clear so that they are not qualified. In this current scenario, it’s not clear where we are going.
If the government is to sort this monetary lockjaw, fiscal lockjaw, markets are central in decision-making.
To the Government, my advice is that it doesn’t matter how much pronunciation you make. It doesn’t matter how many mega deals you are signing.
At the end of the day, the success of any monetary regime and fiscal regime is on the basis of respecting market fundamentals.
It’s important to understand that when you read more of arbitrage, more of cartels, more of cross-border crime, it’s an indication of weaknesses of some of the institutions. And the government needs to respond to that.
</blockquote>
Zimbabwe is experiencing high inflation which has resulted in rising energy prices, currency volatility, and a liquidity crunch. | <a href="https://businesstimes.co.zw/ceos-warn-govt/">Business Times</a>

"We Are In Trouble", CEOs Tell Government

Nedbank Zimbabwe Limited managing director, Sibongile Moyo, won the prestigious CEO of the Year Award and the Banking Executive of the Year Award at the CEO Africa Roundtable gala dinner held in Victoria Falls.
Moyo, who took over the top job at Nedbank Zimbabwe in April last year, succeeded Charity Jinya who stepped down after 10 years at the helm of the bank.
Speaking to Business Times soon after receiving her award from the Minister of Industry and Commerce, Sekai Nzenza, Moyo said:
<blockquote>
The passion to serve drives me. But, there are people that I work with at the bank, who are behind this exceptional award. I dedicate this (award) to all our stakeholders.
</blockquote>
The CEO Roundtable’s Mining Executive of the Year Award went to diamond miner, Zimbabwe Consolidated Diamond Company CEO Mark Mabhudhu.
Simon Nyanhete, the managing director of Agriseeds, was named the Agriculture and Agrobusiness Executive of the Year.
Edgars Stores Limited’s CEO Tjeludo Ndlovu was named the Young CEO of the Year. Ndlovu was appointed Edgars group CEO in July last year, taking over from LindaMasterson.
The late Africa University vice-chancellor, Munashe Furusa, was posthumously awarded a Lifetime Achievement Award.
<h4>More: <a href="https://businesstimes.co.zw/nedbank-boss-scoops-ceo-of-the-year-award/">Business Times</a></h4>

Nedbank Boss Wins CEO Of The Year Award

The Reserve Bank of Zimbabwe (RBZ) has called on captains of industry and businesses that get foreign currency at the official exchange rate to comply with the forex auction exchange rate and price reasonably to avoid being arrested.
RBZ Deputy Governor Kupukile Mlambo, however, said businesses are free to price their products slightly above the auction rate to cater for other costs incurred such as transfer charges.
He made the remarks while responding to questions during the CEO Africa Roundtable conference in Victoria Falls on Friday. Said Mlambo:
<blockquote>
Why get money at a rate of ZW$97 and then charge at ZW$200?
Those who get money from the auction system price reasonably for example with the bank rate being ZW$97 or ZW$99 and you price at ZW$105 or ZW$110, why would we fight you?
Of course, you can charge slightly above the auction rate to cater for other costs incurred like the bank will charge you to give you that money and there are other transfer charges.
</blockquote>
He said where the law would have been broken and it can be proved, as the Central Bank, there was nothing they could do but let the unscrupulous businesses and dealers get arrested.
Mlambo said the Bank’s Financial Intelligence Unit (FIU) was working tirelessly to find out those who were breaking the law and abusing the auction exchange system.
<h4>More: <a href="https://www.sundaynews.co.zw/comply-with-bank-rate-businesses-told/">Sunday News</a></h4>

Businesses Can Charge 'Slightly' Above Auction Rate - RBZ

President Emmerson Mnangagwa failed to attend the CEO Africa Roundtable in Victoria Falls on Saturday due to other commitments.
The council is made up of leaders of a variety of major Zimbabwean corporations, entrepreneurs, business executives, intellectuals and church leaders.
The CEO Africa Roundtable chairperson Oswell Bimha said that they had bungled the invitation procedure. In an interview with the Daily News, he said:
<blockquote>Look, when you invite the president, traditionally we have just written directly to his office and we have had to host him, but this time around we have been told we were supposed to follow a certain pattern which we accept we should have followed.
He is our number one CEO. There is an acknowledgement around the table that we have not followed the right protocol but we still are going to, after this, go back to our president because it does not make the outcome of this conference less important.
We still need to engage him out of the collective that we would have come up with. So, next year, we will do the right thing, we will do the correct processes.
We want to assure the president whatever bungling up of the process, it is not disrespect. We are not all part of the protocol processes done within these circles but certainly, we expect him to be with us next year.
… We have failed to do the procedure. The procedure is that we are supposed to write to our parent minister, our parent minister then requests the president or through whatever channels at the president’s office.
So, we did write directly to them, and writing directly to them, we did write on time and we are still wanting to be educated on how else we could have done it so that we could be educated on the process but also getting the president to create time on his busy schedule to come.</blockquote>
<h4><a href="https://www.dailynews.co.zw/articles/2019/02/17/anger-at-ed-over-ceos-snub">More: Daily News on Sunday</a></h4>

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