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The government has announced that it will impose strict penalties on businesses engaging in unfair practices such as profiteering, manipulating the ZiG currency, and other forms of unfair trade practices.
This declaration comes amid reports of some shops and manufacturers using the unofficial exchange rate in their operations, with others deliberately resisting the use of the ZiG in preference for the US dollar.
Businesses have been citing malfunctioning swipe machines and mobile network breakdowns as justification for their actions.
During a post-Cabinet media briefing held in Harare on Tuesday, the Minister of Information, Publicity, and Broadcasting Services, Jenfan Muswere said:
<blockquote>
Penalties are being enforced against all perpetrators of unjust price hikes, manipulation of the ZiG currency, smuggling, and all forms of unfair trade practices.
The Government is going to review the fines from a minimum of US$200 Level 5 to a maximum of US$5 000 Level 14 or the ZiG equivalent for the various offences.
Licences will be rationalised and consolidated to be obtained in one office as a measure to enhance efficiency.
</blockquote>
Muswere also said the Reserve Bank of Zimbabwe (RBZ) will take measures to promote the uptake of plastic money. He said:
<blockquote>
In order to promote the uptake of plastic money, the Reserve Bank of Zimbabwe will strengthen the mandatory licensing requirements for all business operators to have a bank account and Point of Sale (POS) machine under the Shop and Shop Licensing Act, and deploy inspectors to curb misdemeanours that militate against price stability and availability of basic commodities.
The Government of Zimbabwe, going forward, will increase border patrols, increase the number of inspectors and implement a Whole-of-Government Approach to deal with the menace at border posts.
</blockquote>
A spokesperson for the Ministry of Finance, Economic Development and lnvestment Promotion told Bloomberg that the Minister (Mthuli Ncube) may make an announcement next week, without providing a specific date.
Zimbabwe is trying to shake off its heavy dependence on the US dollar, which has been the dominant currency since 2009.
The greenback now accounts for about 70% of all economic transactions in the economy, according to central bank data.
At the April launch of the gold-backed ZiG currency, US dollars were used in 85% of transactions.
President Emmerson Mnangagwa recently hinted at the possible adoption of the ZiG as the sole currency as early as 2026, ahead of an initial 2030 deadline.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

The government is angry with some businesses for making prices too high. They want to stop these unfair things and they will give heavy penalties to those who do not follow the rules. They also want people to use the local currency called ZiG more, instead of US dollars. If people keep using US dollars for most things, the government will make it hard for them. The government also wants businesses to have bank accounts and machines to pay electronically. They are trying to make their own currency stronger and used more.

Government Threatens Heavy Fines For Unjust Price Hikes

The Zimbabwe Revenue Authority (Zimra) has urged local businesses to charge realistic prices and to do away with profiteering to boost economic growth.
Zimra board chair Mrs Willia Bonyongwe said yesterday:
<blockquote>Profiteering is a local disease. Government must also seriously look into the mark ups of those who get licences to import goods. This is not a call for price control, but all these factors impact negatively on Zimbabwe’s capacity to increase production and exports
There is just no justification for the current excessive mark-ups on imported goods for fertilisers, chemicals and other inputs, equipment, even medicines.
For example, following the aborted introduction on Value Added Tax (VAT) through Statutory Instrument 20 of 2017 on selected basic commodities, the prices were never adjusted after it was repealed.</blockquote>
More: <a href="http://www.chronicle.co.zw/zimra-blasts-profiteering-businesses/">Chronicle</a>

Businesses need to adjust prices and stop profiteering: Zimra

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