Category: News Feeds

Less
than
six
months
after
Zimbabwe
launched
yet
another
new
currency,
it
was
forced
to
devalue
it,
signalling
new
challenges
for
the
Southern
African
country’s
efforts
to
stand
up
a
local
currency
and
reduce
dependency
on
the
United
States
dollar.

In
April,
Zimbabwe’s
central
bank
launched
the ZiG,
or
Zimbabwe
Gold,
which
was
hyped
as
a
stabiliser
amid
the
country’s
long-running
currency
and
economic
crisis.

But
in
late
September,
authorities
slashed
the
value
of
the
new
gold-backed
currency
by
more
than
40
percent.

The
ZiG
is
only
one
of
several
attempts
Zimbabwean
authorities
have
made
to
introduce
a
new
currency
since
2009
when
surging
hyperinflation
caused
a
spectacular
crash
of
the
Zimbabwe
dollar,
or
the
Zimdollar.

The
effects
of
the
inflation
crisis
are
still
glaring
with
Zimbabwe
battling
high
inflation
worsened
by
a
severe
drought
in
the
region.

What
happened?

On
September
27,
the
Reserve
Bank
of
Zimbabwe
(RBZ)
slashed
the
value
of
the
ZiG
by
43
percent,
taking
it
from
13.56
ZiG
to
the
US
dollar
at
its
launch
to
24.4
ZiG
to
the
dollar.
The
currency
has
further
weakened
to
27
ZiG
this
week.

The
bank
was
forced
to
make
the
move
after
widening
gaps
emerged
between
the
official
and
unofficial
exchange
rates
of
the
ZiG
as
the
currency
was
going
for
about
twice
the
approved
rate
on
the
black
market.

Despite
the
devaluation,
there
are
still
huge
gaps
between
official
and
parallel
rates:
By
October
23,
the
ZiG
was
pegged
at
40
to
50
to
the
dollar
on
the
black
market,
according
to
the
price
monitoring
website
Zim
Price
Check.

Local
businesses
and
retailers
forced
to
trade
with
the
ZiG
at
the
official
rate
had
reportedly
warned
authorities
that
they
would
close
their
stores
if
the
rate
differences
are
not
tackled,
according
to
reporting
by
the
BBC.

In
an
interview
with
the
Zimbabwe
Broadcasting
Corporation
this
month,
RBZ
Governor
John
Mushayavanhu
said
the
move
“was
not
a
devaluation
but
a
manifestation
of
what
was
already
happening
on
the
market”,
referring
to
the
depreciation
of
the
ZiG
in
the
months
since
its
launch.

He
also
said
it
was
not
expected
to
happen
again
although
he
said
inflation
would
rise
slightly
by
the
end
of
the
year.

“I’d
say
that
the
impact
…
has
been
felt,
but
there
should
be
stabilisation
going
forward.
In
fact,
we
should
see
prices
starting
to
fall,”
he
added.

Why
and
when
was
the
ZiG
introduced?

The
RBZ
launched
the
ZiG
on
April
5
to
replace
the
Zimdollar
and
tackle
skyrocketing
inflation.

The
now-scrapped
Zimdollar
had
become
one
of
the
world’s
worst
performing
currencies
after
it
lost
nearly
all
its
value
because
of
depreciation.
By
the
time
of
its
death,
the
currency
was
exchanged
for
about
30,000
to
40,000
Zimdollars
to
1
US
dollar.

Many small
businesses
had
already
stopped
accepting
the
local
currency
with
most
people
opting
instead
for
the
US
dollar,
which
has
been
legal
tender
since
hyperinflation
hit
the
country
from
2007
to
2009.

Mismanagement,
corruption
and
sanctions
by
the
US
and
the
International
Monetary
Fund
(IMF)
had
caused
Zimbabwe’s
economy
to
flail
under
longtime
former
President
Robert
Mugabe.
The
RBZ
then
resorted
to
printing
money
to
ease
the
situation,
flooding
the
economy
with
currency
that
had
no
real
worth.

The
hyperinflation
that
followed
saw
people
lose
all
their
savings
and
pensions
as
prices
of
food
and
other
necessities
skyrocketed
with
a
loaf
of bread
costing
500
million
Zimdollars.
The
general
inflation
rate
was
about
79
billion
percent.

At
one
point,
the
RBZ
issued
a
100
trillion
Zimdollar
banknote.

In
2009
at
the
height
of
the
crisis,
the
government
was
forced
to
temporarily
scrap
the
local
currency
and
allow
the
US
dollar,
which
was
already
on
the
black
market,
to
be
used
legally.

In
2019,
the
local
currency
was
introduced
but
three-digit
inflation
has
persisted.
A
digital
gold-backed
currency
was
also introduced
in
May
2023
to
a
lukewarm
reception
by
businesses.

Zimbabwean
authorities
have
struggled
to
wean
the
population
off
the
US
greenback
as
it
has
become
the
most
reliable
currency
for
people
to
secure
their
savings.

By
April,
about
85
percent
of
the
country’s
transactions
were
conducted
in
US
dollars,
Mushayavanhu
told
reporters
in
Harare
during
the
ZiG
launch.

Is
the
ZiG
better
than
the
Zimdollar?

The
effects
of
the
new
currency
are
mixed
for
now,
and
some
said
it
is
too
soon
to
assess
the
ZiG’s
performance.

The
currency
is
anchored
on
a
mix
of
foreign
currencies,
gold,
diamonds
and
other
precious
stones
in
Zimbabwe’s
reserves.
Mushayavanhu
said
in
April
that
Zimbabwe
had
1.1
tonnes
of
gold
worth
US$175m
as
well
as
foreign
currency
reserves
of
US$100m.

Zimbabwe
boasts
vast gold
deposits with
the
precious
metal
accounting
for
almost
25
percent
of
all
exports
in
January,
according
to
official
data.
However,
the
country’s
16
million
people
continue
to
experience
hardships
in
an
economy
long
battered
by
high
inflation,
and
many
rely
on
aid.

The
ZiG
comes
in
eight
denominations,
including
coins,
with
the
highest
being
the
200
ZiG
note.
The
notes
feature
a
drawing
of
gold
blocks
being
minted
and
Zimbabwe’s
Balancing
Rocks,
which
were
also
on
the
Zimdollar
notes.

Many
Zimbabweans,
though,
do
not
appear
to
trust
it.

“The
ZiG
has
been
getting
weaker,
so
it
does
not
make
business
sense
to
transact
with
it,”
Maynard
Maketo,
a
street
hawker
selling
candy
and
phone
recharge
cards,
told
the
Reuters
news
agency
in
September.
“I
do
not
have
faith
in
the
ZiG.
We
have
been
here
before
with
the
Zimdollar.”

However,
OK
Limited
bank
reported
a
drop
in
foreign
currency
sales
in
July
in
favour
of
the
ZiG
although
the
bank
did
not
give
the
real
value
of
the
drop.

Zimbabwean
media
also
noted
that
the
use
of
US
dollars
for
transactions
has
dropped
from
85
percent
to
about
70
percent.
Officials
said
they
expect
more
people
to
gradually
accept
the
currency.

But
some
don’t
have
faith
in
a
currency
that
has
come
under
pressure
in
less
than
six
months
and
lost
nearly
half
its
value
despite
government
intervention.
Authorities
arrested
black
market foreign
exchange
dealers in
April,
accusing
them
of
distorting
exchange
rates.

As
the
ZiG
continues
to
slide
rapidly
on
the
unofficial
market,
some
people
–
scared
of
a
repeat
of
2009
–
are
increasingly
exchanging
the
currency
for
the
US
dollar,
pressuring
the
local
currency
even
more.
Some
businesses
do
not
accept
the
ZiG.

Some
experts
blamed
the
government’s
decision
to
retain
a
multicurrency
system
for
the
currency’s
depreciation
although
authorities
said
the
plan
is
to
use
only
the
ZiG
by
2026,
moving
up
from
a
previous
2030
deadline.

Others
said
rushing
to
make
the
system
a
monocurrency
one
could
cause
confusion
and
further
hardships
as
they
advised
authorities
to
take
their
time
and
stabilise
the
local
currency
first.

What
next
for
the
ZiG?

The
ZiG’s
fate
is
unclear
as
even
some
parts
of
the
government
appear
to
have
lost
confidence
in
it.

Although
government
agencies
were
ordered
to
pay
pensions
and
salaries
in
both
ZiG
and
the
US
dollar,
the
Grain
Marketing
Board
in
September
paid
wheat
farmers
entirely
in
US
dollars
for
this
year’s
crop.

Civil
servants
will
also
get
pay
raises
and
annual
bonuses
in
US
dollars
this
year,
authorities
said.

Some
experts
said
the
devaluation
was
not
necessarily
a
poor
move
but
the
government’s
task
now
is
to
use
the
currency
frequently
enough
that
businesses
and
individuals
start
to
have
confidence
in
it
–
for
example,
by
charging
more
taxes
in
ZiG.

“I
don’t
think
we
are
seeing
the
death
of
the
currency,
but
we
have
our
work
cut
out
for
us,”
Lawrence
Nyazema,
president
of
the
Bankers
Association
of
Zimbabwe
told
Reuters.
“We
have
to
do
more
work
in
terms
of
convincing
the
citizens
that
the
money
is
stable.
We
needed
to
reset,
and
now
that
we
have
reset,
we
need
to
stick
to
our
promises.”

One
winter
morning
in
2008,
Epiphnia
Mudehwe
from
Mutare,
a
city
in
the
eastern
part
of
Zimbabwe,
boarded
a
bus
to
town
to
withdraw
her
salary
of
1
billion
Zimbabwe
dollars.
The
amount
sounds
impressive,
but
it
was
worthless
because
of
the
hyperinflation
that
Zimbabwe
was
then
experiencing.
In
July
that
year,
the
exchange
rate
had
reached
ZW$500
billion
to
$1,
making
ZW$1
billion
worth
less
than
a
cent.

Mudehwe’s
notes
devalued
while
she
was
in
line
at
a
supermarket,
and
the
midwife
was
unable
to
purchase
any
groceries.
The
money
could
not
even
cover
her
bus
fare
and
she
had
to
walk
three
hours
to
her
tiny
home
in
Dangamvura,
a
densely
populated
suburb
in
Mutare,
where
she
lived
with
her
family.
Prices
of
basic
commodities
at
the
time
were
changing
every
hour,
increasing
at
a
meteoric
rate.

Mudehwe
has
seen
it
all:
a
strong
Rhodesian
dollar
in
the
colonial
era,
a
highly
sought-after
Zimbabwe
dollar
in
the
1980s
after
independence,
the
hyperinflation
of
2008,
and
now
a
new
currency
introduced
in
April,
called
Zimbabwe
Gold
but
known
by
its
acronym,
ZiG.

At
62,
the
mother
of
four
still
recalls
how
strong
the
Rhodesian
dollar
was
in
the
late
1970s
when
she
undertook
her
midwife
training
in
Fort
Victoria
(now
Masvingo),
a
city
in
southeastern
Zimbabwe.
One
could
buy
a
meal
for
several
people
using
just
coins.

Born
and
raised
in
Mvuma,
a
small
town
in
Midlands
Province,
she
appreciates
her
parents
looking
after
her
and
educating
her.
Her
goal
was
to
finish
her
postgraduate
studies
and
earn
her
own
salary,
as
her
elders
had
done.
With
her
first
salary
in
1980,
Mudehwe
bought
blankets
and
clothes
for
her
parents.
That
same
year
Zimbabwe
became
independent
from
Britain.

“I
felt
like
I
was
dreaming,”
she
tells New
Lines. “My
salary
was
not
much,
but
the
money
had
so
much
value.
I
could
do
a
lot
with
it.
By
merely
looking
at
the
quality
of
the
paper,
you
could
tell
that
it
had
value.”

President
Robert
Mugabe
of
the
ruling
Zimbabwe
African
National
Union-Patriotic
Front
(ZANU-PF)
inherited
a
flourishing
economy
from
Ian
Douglas
Smith,
a
Briton
who
had
been
prime
minister
of
Rhodesia
from
1964
to
1979.
The
country’s
manufacturing
industry
and
efficient
agriculture
helped
to
keep
the
new
Zimbabwe
dollar
strong.

Mudehwe’s
situation
improved,
and
by
1992
she
was
able
to
buy
the
four-room
house
where
she
is
currently
staying
from
the
local
authority
through
a
housing
scheme.
She
worked
at
the
Dangamvura
clinic,
a
few
miles
from
her
home.
Mudehwe
was
excited
and
planned
to
renovate
the
house
for
her
growing
family.
But
her
excitement
did
not
last.
Zimbabwe’s
currency
collapsed
in
November
1997.

This
was
caused
by
a
combination
of
factors.
When
Smith’s
government
separated
from
the
United
Kingdom
through
the
Unilateral
Declaration
of
Independence
in
1965,
it
introduced
measures
that
included
guaranteed
cheap
credit
and
protection
of
domestic
industries
from
foreign
companies
to
sustain
the
economy.
Mugabe
retained
some
of
these
measures,
which
created
problems
for
his
government.
Restrictions
on
foreign
investment
also
contributed
to
a
foreign
exchange
shortage.
In
1990,
inspired
by
the
World
Bank,
Mugabe
introduced
the
market-friendly
Economic
Structural
Adjustment
Programme,
which
liberalized
the
economy.

This
only
exacerbated
the
problems,
says
Paison
Tazvivinga,
a
Zimbabwean
economist
based
in
South
Africa,
leading
to
“high
unemployment,
decreased
access
to
essential
services
and
social
unrest
…
Many
people
ended
up
facing
a
decline
in
living
standards.”
Mugabe
was
forced
to
spend
unbudgeted
millions
that
year
in
payouts
to
veterans
who
had
participated
in
the
anti-colonial
war
against
the
white
minority
government.

In
1998,
the
Zimbabwe
dollar
lost
half
of
its
value
in
less
than
two
months,
following
the
deployment
of
Zimbabwean
troops
to
the
Congo
to
support
then-President
Laurent-Desire
Kabila,
who
was
facing
a
rebellion.
The
war
cost
Zimbabwe
an
estimated
$1.7
million
a
month
between
1998
and
2002.
This
had
a
heavy
impact
on
the
treasury.
“It
increased
our
debt
levels,”
says
Tazvivinga,
and
“affected
trade
routes
and
regional
economic
relations.”

The
final
nail
in
the
coffin
for
Zimbabwe’s
economy
under
Mugabe
was
the
eviction
of
4,000
white
commercial
farmers
under
the
land
reform
program
introduced
in
the
2000s.
The
farms
that
were
supposed
to
benefit
landless
Black
farmers
ended
up
benefiting
Mugabe,
his
wife
Grace,
his
allies
and
political
supporters.
Grace
acquired
more
than
15
farms,
spanning
at
least
16,000
hectares.

Gideon
Gono,
then
governor
of
the
Reserve
Bank
of
Zimbabwe,
issued
a
ZW$100
trillion
note
in
January
2009,
which
exacerbated
poverty
and
hunger
amid
shortages
of
basic
commodities.
A
month
later,
the
market
dumped
the
Zimbabwe
dollar
in
favor
of
the
U.S.
dollar,
forcing
the
government
to
adopt
the
latter
as
the
main
currency.
The
multicurrency
system
was
maintained
under
the
government
of
national
unity,
a
power-sharing
deal
between
Mugabe
and
the
Movement
for
Democratic
Change
leader
Morgan
Tsvangirai.

On
April
5,
2024,
the
new
central
bank
governor,
John
Mushayavanhu,
introduced
Zimbabwe
Gold,
a
new
currency
to
replace
the
beleaguered
Zimbabwe
dollar,
which
had
lost
80%
of
its
value
against
the
U.S.
dollar.
The
ZiG
at
the
time
was
said
to
be
backed
by
2.5
tons
of
gold
and
$100
million
in
cash
reserves.

Mudehwe
does
not
have
confidence
in
the
new
currency.
The
grandmother
of
seven
says
that
her
granddaughter
showed
her
10
ZiG.
“That’s
the
only
time
I
saw
it,”
she
says.

This
is
the
sixth
attempt
by
Harare
to
introduce
a
local
currency
since
2009,
when
the
multicurrency
system
came
into
effect.
In
2014,
the
central
bank
introduced
bond
coins
to
resolve
change
problems.
This
was
followed
in
2016
by
bond
notes
which
were
at
par
with
the
U.S.
dollar.
In
2019
the
Zimbabwe
dollar
was
reintroduced
along
with
a
ban
on
the
use
of
foreign
currency,
after
a
decade
of
dollarization.

But
the
central
bank
failed
to
win
public
trust
and
in
March
2020,
amid
the
global
pandemic
that
worsened
the
economic
crisis,
the
governor
was
forced
to
bring
back
the
multicurrency
system.

Many
are
struggling
due
to
the
unstable
currency.
The
case
of
Mellisah
Katyora
is
typical.
The
28-year-old
and
mother
of
two
runs
a
small
shop
that
sells
mostly
women’s
clothes
at
a
shopping
complex
in
Dangamvura.
She
accepts
the
local
currency
but
pegs
her
prices
to
U.S.
dollars.
“When
people
want
to
pay
in
ZiG
we
take
it
at
the
day’s
prevailing
rate,”
says
Kutyora.
ZiG
is
not
yet
tradable.
Katyora,
who
buys
her
shop’s
wares
from
neighboring
South
Africa
and
Zambia,
has
to
convert
all
her
currencies
to
U.S.
dollars.
She
says
she
mostly
uses
ZiG
for
change
as
there
are
no
U.S.
coins
in
circulation.
“When
ZiG
started
circulating
in
April,
it
was
hard
to
find.
But
it
is
getting
better
now,”
she
says.

Katyora
is
not
happy
about
the
disparities
in
the
foreign
exchange
rates.
“It
is
confusing.
It
distorts
prices,”
she
says,
anxiously
biting
her
nails
when
speaking.
Consumers
have
to
deal
with
different
foreign
exchange
rates.
There
are
different
rates
for
paying
using
a
debit
card,
mobile
money
and
ZiG
notes
or
coins.

Because
of
Zimbabwe’s
high
unemployment
rate,
the
majority
of
its
workforce
is
employed
in
the
informal
sector,
where
these
problems
prevail.
Formal
businesses
are
forced
by
the
government
to
abide
by
the
official
foreign
exchange
rate.
Many
Zimbabweans
prefer
to
buy
cheap
groceries
and
clothes
from
people
who
sell
from
the
trunk
of
their
cars
in
the
streets
and
not
formal
businesses.

Rashweat
Mukundu,
a
social
commentator
and
human
rights
activist
based
in
Harare,
says
that
Zimbabweans
have
lost
confidence
in
the
local
currency
because
of
the
central
bank’s
lack
of
consistency.
“Regardless
of
efforts
by
the
government,
there
is
clarity
that
the
trauma
that
they
went
through
from
2007
when
they
lost
their
savings
when
they
faced
the
total
collapse
of
the
Zimbabwe
dollar
is
still
imprinted
in
the
national
psyche,”
he
says.

These
crises
are
having
a
broader
impact.
The
country’s
health
sector
has
deteriorated,
the
education
sector
is
underfunded
and
people
are
struggling
to
buy
basic
commodities.
The
government
blames
decades
of
sanctions
while
the
U.S.
Embassy
in
Harare
maintains
that
the
sanctions
are
targeted
and
have
no
economic
impact.
The
Zimbabwe
Democracy
and
Economic
Recovery
Act
of
2001
sanctioned
Mugabe
and
some
top
officials
over
gross
human
rights
violations.
After
pressure
from
regional
leaders
and
the
Zimbabwean
government,
President
Joe
Biden
lifted
sanctions
initially
imposed
by
President
George
W.
Bush
in
2003
and,
in
March
this
year,
instead
placing
Magnitsky
Act
sanctions
on
11
Zimbabweans
and
three
entities,
including
President
Emmerson
Mnangagwa,
for
their
involvement
in
corruption
and
human
rights
abuses.

But
while
the
international
sanctions
were
aimed
at
stopping
political
leaders
and
specific
sectors
from
profiting
from
corruption,
they
ended
up
hurting
the
local
economy.
According
to
Tazvivinga,
they
led
to
“a
decline
in
foreign
investment
and
reduced
access
to
the
international
market.”
He
adds:
“They
exacerbated
an
already
struggling
economy
which
also
contributed
to
hyperinflation
in
the
late
2000s
and
widespread
poverty.”

The
instability
of
Zimbabwe’s
currency
remains
a
grave
concern
even
for
the
younger
generations.
Tatenda
Mitchell
Kupara,
18,
a
high
school
student
from
Dangamvura,
says
she
prefers
to
have
her
savings
in
U.S.
dollars.
“I
am
used
to
the
U.S.
dollar
because
I
can
reliably
budget
with
it
unlike
ZiG,”
she
tells New
Lines.
“When
the
ZiG
came,
I
had
some
Zimbabwe
dollar
notes.
They
all
became
worthless
so
I
had
to
throw
them
away.”
She
says
she
often
faces
issues
of
getting
change
when
commuting
to
school.
“I
am
supposed
to
pay
50
cents
but
I
end
up
paying
a
dollar
because
the
bus
driver
does
not
give
you
change,”
she
says.
“The
money
I
am
supposed
to
use
for
the
whole
week
ends
up
lasting
just
half.”

This
frustration
is
common
among
young
people,
reflecting
a
broader
despair
over
the
state
of
the
economy.

Despite
this
frustration,
the
ZiG
remained
stable
from
its
launch
in
April
to
September
on
the
official
market.
It
was
introduced
at
13
ZiG
to
$1
and
officially
it
trades
at
14.
However,
on
the
black
market
the
rate
plummeted
to
24
ZiG
to
the
dollar
in
early
September,
underscoring
the
gap
between
official
figures
and
reality.
This
forced
the
central
bank
to
devalue
the
ZiG
by
43%
on
Sept
27.
But
prices
of
gold,
a
commodity
authorities
claim
is
backing
the
ZiG,
have
been
surging
for
the
past
few
months.
From
Sept.
27,
the
ZiG
has
been
trading
at
24
to
$1.
On
the
black
market
the
rate
has
gone
up
to
50
ZiG
to
$1.
Civil
servants
who
had
just
been
paid
in
local
currency
by
the
government
lost
their
income.
The
devaluation
of
the
ZiG
triggered
panic
buying
and
shortages
of
basic
commodities.

The
macroeconomic
conditions
the
ZiG
is
being
introduced
under
are
no
more
favorable
than
in
the
past.
Dilapidated
infrastructure,
food
insecurity,
unproductive
factories,
underperforming
agriculture,
extreme
poverty
and
chronic
unemployment
all
contribute
to
the
economic
malaise.
And
the
government
itself
does
not
have
confidence
in
its
currency.
Most
of
its
services,
including
passports
and
customs
duty
taxes,
are
charged
for
in
U.S.
dollars.

Victor
Bhoroma,
an
economist
based
in
Harare,
tells Three
Generations,
One
Crisis that
the
viability
of
the
ZiG,
just
like
all
other
currencies,
largely
depends
on
whether
the
central
bank
can
stop
quasi-fiscal
operations,
like
lending
to
commercial
banks
for
onward
lending
at
artificially
low
rates,
lending
to
state
entities
and
funding
particular
economic
activities
like
gold
and
tobacco
production.

There
is
no
efficient
foreign
exchange
market
through
which
suppliers
and
customers
can
approach
commercial
banks
to
buy
and
sell
foreign
currency.
Businesses
and
individuals
have
been
struggling
to
access
foreign
currency
in
commercial
banks
since
the
introduction
of
ZiG
in
April.

Bhoroma
says
that
for
the
new
currency
to
be
sustainable,
“there
have
to
be
reforms
in
order
to
ensure
that
there
is
a
market-driven
foreign
exchange
system
where
banks
are
the
matchmakers.”

A
national
debt
of
around
$22bn
is
also
a
threat
to
Zimbabwe’s
economy.
The
country
owes
over
$14
billion
to
international
creditors
including
the
World
Bank,
according
to
the
African
Development
Bank.
Creditors
stopped
lending
to
Zimbabwe
after
it
failed
to
service
its
debts
in
the
late
1990s.
Efforts
to
restructure
the
debt
are
likely
to
collapse
following
a
flawed
2023
election.
The
U.S.
pulled
out
of
the
debt
restructuring
process
early
in
January
citing
election
irregularities.

The
situation
is
not
sustainable,
says
Bhoroma.
Not
while
Zimbabwe
has
“economic
growth
of
probably
3%,
whilst
money
supply
is
growing
at
a
rate
of
over
500%
per
annum,”
he
says.
Because
half
of
the
government
budget
is
funded
by
the
central
bank
and
the
overdraft
facility
is
abused,
the
source
for
ZiG
is
a
bottomless
pit,
creating
artificial
demand
for
foreign
currency.
“There
is
no
way
ZiG
can
be
stable
or
the
foreign
exchange
rate
can
be
stable.”

Many
people
in
the
informal
sector
like
Katyora
do
not
bank
their
money
but
prefer
to
keep
it
under
their
pillow.
If
there
is
no
confidence
in
the
banking
system,
then
ZiG
has
no
viability,
says
Bhoroma.

After
the
release
of
ZiG,
the
government
pressured
people
to
accept
the
local
currency.
It
crafted
laws
forcing
businesses
to
use
the
official
foreign
exchange
rate
while
the
bank’s
officials
and
ZANU-PF
politicians
intimidated
individuals
and
companies
to
embrace
it.
Authorities
arrested
illegal
money
changers
who
control
the
black
market,
charging
them
with
money
laundering.
But
such
heavy-handed
tactics
have
further
eroded
trust
in
the
new
currency,
says
Mukundu.

Kupara
struggles
to
understand
finance
at
school
and
at
home
because
of
the
confusion
and
disorder
caused
by
Zimbabwe’s
currency
crisis.
She
wishes
for
a
stable
local
currency.
“Consistency
is
key,”
she
says,
adding
that
she
will
study
information
technology
at
university.
Mudehwe,
on
the
other
hand,
has
abandoned
her
house
renovations
after
the
country’s
currency
ruined
her
plans.
“My
children
will
complete
it,”
she
says.

Zimbabweans
have
shown
remarkable
resilience
but
an
unstable
currency
has
left
a
deep
and
lasting
impact
across
generations.
It
has
shattered
the
plans
of
older
citizens
like
Mudehwe,
forcing
them
to
leave
the
future
in
the
hands
of
their
children.
It
has
made
it
impossible
for
the
likes
of
Katyora
to
earn
a
decent
livelihood.
Even
youth
like
Kupara
feel
defeated
and
confused.
Unless
Zimbabwe
succeeds
in
restoring
confidence
in
the
local
currency,
these
struggles
may
yet
be
passed
on
to
future
generations.


–

New
Lines
Magazine

They
argue
that
the
date
on
the
document
does
not
align
with
the
victim’s
date
of
death.

Bigson
Nyoni
and
Langton
Makonye,
members
of
the
Zimbabwe
Republic
Police,
along
with
Ross
Johnston
and
Kyle
Bennet
from
the
neighbourhood
watch
committee,
face
charges
for
the
murder
of
the
then
34-year-old
Paul
Munakopa.

Nyoni
and
Makonye
are
represented
by
Kholwani
Ngwenya
of
T
J
Mabhikwa
and
Partners,
while
Johnston
and
Bennet
are
represented
by
Prince
Butshe-Dube
of
Mathonsi
Ncube
Law
Chambers.

The
defence
argues
that
the
post-mortem
indicates
it
was
conducted
on
May
21,
2020,
whereas
the
victim’s
date
of
death
is
recorded
as
May
24,
2020.
They
claim
this
discrepancy
casts
doubt
on
the
accuracy
of
other
details
in
the
document.

The
State
countered
that
the
defence
could
have
raised
these
concerns
earlier,
as
they
had
the
documents
in
their
possession
for
some
time.

It
also
noted
that
it
would
request
a
medical
expert
to
testify
in
court,
interpret
the
post-mortem
findings,
and
determine
whether
the
report
should
be
accepted
as
evidence.

High
Court
Judge
Justice
Naison
Chivayo
postponed
the
trial
to
November
11
for
continuation.

Munakopa
allegedly
succumbed
to
gunshot
wounds
sustained
during
a
high-speed
chase
and
shootout
that
occurred
during
the
Covid-19
lockdown.

In
their
defence,
the
police
officers
claimed
they
were
on
duty
on
the
night
of
the
incident
and
had
been
briefed
about
a
black
Honda
Fit
vehicle
suspected
to
have
been
involved
in
criminal
activities
in
the
area.

They
stated
that
Munakopa,
who
was
with
his
girlfriend,
violated
lockdown
regulations,
and
when
they
attempted
to
stop
him
for
questioning,
he
fled.
This
led
to
the
shooting
in
an
attempt
to
stop
the
car.

The
fire
brigade
swiftly
responded
to
the
scene
and
managed
to
contain
the
blaze.

When
the
CITE
news
team
arrived
at
the
complex,
business
owners
were
being
instructed
to
gather
their
belongings
and
close
up
for
the
day
as
the
fault
was
being
addressed.

Sources
within
the
complex
indicated
that
the
fire
originated
at
Shop
5L
on
the
ground
floor,
starting
in
the
ceiling
as
a
result
of
an
electrical
fault.

“The
fire
was
spreading
through
the
ceiling
and
slowly
advancing
towards
the
first
floor,
but
it
was
extinguished
before
it
could
reach
other
shops,”
they
said.

Several
shop
owners,
who
spoke
anonymously,
expressed
concerns
about
the
state
of
the
building’s
wiring,
saying
it
is
outdated
and
in
need
of
replacement.

“We
are
worried
about
the
safety
of
our
merchandise.
We
hope
the
issue
will
be
thoroughly
addressed
today,
identifying
the
root
cause
and
finding
a
lasting
solution
to
prevent
such
incidents
in
the
future,”
said
one
shop
owner.

A
witness
who
was
inside
the
building
when
the
fire
started
recounted,
“There
were
flames
in
the
ceiling
on
the
ground
floor,
and
we
saw
smoke
rising
to
the
first
floor.
We
were
quickly
told
to
evacuate
the
building.
It
was
a
frightening
experience,
but
we
are
relieved
that
it
was
brought
under
control
in
time.”

Business
owners
at
the
complex
are
eager
for
the
building
to
reopen
as
promised,
fearing
potential
revenue
loss.

“We’re
concerned
about
our
stock.
We
want
to
remove
it
from
the
premises
just
in
case
the
complex
remains
closed
for
an
extended
period.
Our
livelihood
depends
on
this
business,”
they
said.

One
businessperson
added,
“This
issue
needs
to
be
resolved
quickly.
The
building
owner
has
the
resources—after
all,
we
just
paid
rent
recently
and
didn’t
expect
this
to
happen.
Everyone
here
pays
on
time,
and
if
we’re
even
a
little
late,
they
lock
us
out.
We
hope
the
repairs
will
be
completed
by
the
end
of
the
day
so
that
we
can
resume
work
tomorrow.”

The
Senate
passed
the
PVO
Amendment
Bill
on
17
October
2024,
clearing
the
way
for
President
Emmerson
Mnangagwa
to
sign
it
into
law.

The
bill
was
initially
gazetted
on
1
March
2024
after
a
previous
version
from
2021
expired,
as
President
Mnangagwa
had
declined
to
sign
it,
citing
reservations.
The
latest
version,
however,
includes
even
stricter
provisions
than
its
predecessor.

ZLHR
expressed
serious
concerns
about
the
rapid
pace
of
the
Senate’s
deliberations,
which
it
claimed
lacked
adequate
debate
and
scrutiny.

“ZLHR
is
shocked
that
despite
clear
and
legitimate
concerns
from
a
significant
segment
of
local
civil
society
organizations
(CSOs),
citizens,
and
regional
and
international
bodies,
such
as
the
United
Nations
Special
Procedures,
regarding
the
PVO
Amendment
Bill’s
inconsistency
with
national,
regional,
and
global
standards
on
freedom
of
association,
this
harmful
law,
which
infringes
on
human
rights,
was
rushed
through
Parliament.
The
March
2024
version
mirrors
the
November
2021
one
but
with
even
more
repressive
provisions,”
ZLHR
said.

The
organisation
warned
that
if
enacted,
the
bill
would
significantly
undermine
Zimbabwe’s
commitment
to
human
rights,
especially
the
right
to
freedom
of
association.

“ZLHR
is
deeply
troubled
by
the
provisions
of
the
PVO
Amendment
Bill,
which
threaten
the
operations
of
CSOs.
Ultimately,
this
legislation
could
lead
to
the
closure
of
civic
space,
which
has
been
gradually
shrinking
since
August
2018.
The
bill
includes
measures
that
legitimize
excessive
executive
interference
in
CSO
operations,
criminalize
the
work
of
CSOs
and
their
leaders,
and
curtail
their
freedom
of
association.
It
also
seeks
to
concentrate
executive
power
in
the
registration
process
of
PVOs
through
the
Registrar’s
office,”
the
statement
continued.

“It
flagrantly
disregards
the
principles
of
association
outlined
in
the
African
Commission
on
Human
and
Peoples’
Rights’
Guidelines
on
Freedom
of
Association
and
Assembly
in
Africa.”

ZLHR
stressed
that
the
bill
threatens
civil
society’s
ability
to
operate
freely,
undermining
its
role
in
defending
human
rights
and
providing
essential
services.

In
contrast,
the
government,
represented
by
Minister
of
Justice,
Legal
and
Parliamentary
Affairs
Ziyambi
Ziyambi,
has
defended
the
bill
as
a
necessary
measure
to
comply
with
the
Financial
Action
Task
Force
(FATF)
recommendations,
which
aim
to
combat
money
laundering,
terrorism
financing,
and
other
illicit
financial
activities.

While
ZLHR
acknowledged
the
importance
of
addressing
financial
crimes,
it
accused
the
government
of
selectively
applying
FATF
standards
to
justify
restrictive
measures
on
CSOs.
The
organisation
also
criticised
the
government
for
overlooking
the
FATF’s
revised
2016
standards,
which
call
for
proportionate,
risk-based
measures
that
do
not
disrupt
legitimate
charitable
activities.

“In
fact,
the
government
has
ignored
the
FATF’s
Revised
2016
Standards
and
Methodology,
which
emphasize
that
measures
to
protect
not-for-profit
organizations
(NPOs)
from
potential
abuse
should
be
risk-based
and
should
not
unduly
disrupt
legitimate
activities.
The
FATF’s
‘High-Level
Synopsis
of
the
Stock
Take
of
the
Unintended
Consequences
of
the
FATF
Standards,’
released
on
27
October
2021,
underscores
the
need
for
targeted
and
balanced
approaches
that
respect
international
human
rights
obligations,”
ZLHR
stated.

The
organisation
further
accused
the
Zimbabwean
government
of
using
FATF
guidelines
as
a
pretext
to
impose
unwarranted
restrictions
on
civil
society.

“The
Zimbabwean
government
continues
to
misuse
the
FATF
Recommendations
and
Standards
to
shrink
civic
space.
Disappointingly,
it
ignored
the
November
2023
revision
of
FATF’s
Recommendation
8
Interpretive
Note,
which
clarified
that
governments
should
adopt
focused,
proportionate,
and
risk-based
measures
to
address
terrorism
financing
risks.
This
includes
acknowledging
self-regulatory
mechanisms
within
the
NPO
sector,
which
should
negate
the
need
for
additional
state
interventions
if
they
are
deemed
adequate,”
ZLHR
said.

ZLHR
called
on
President
Mnangagwa
to
refrain
from
signing
the
bill,
warning
that
it
could
have
profound
implications
for
Zimbabwe’s
human
rights,
humanitarian,
and
development
sectors.

“Zimbabwe
already
has
a
comprehensive
regulatory
framework
for
combating
money
laundering
and
terrorism
financing,
which
can
be
applied
to
this
sector.
This
framework
includes
several
laws,
policies,
and
practices
designed
to
prevent
these
activities
and
hold
offenders
accountable.
ZLHR
urges
President
Mnangagwa
and
the
government
to
respect
the
will
of
the
majority
of
Zimbabweans
and
to
avoid
enacting
legislation
that
tramples
on
the
people’s
aspirations.”

The
group
also
called
for
adherence
to
the
African
Commission
on
Human
and
Peoples’
Rights
guidelines
on
freedom
of
association
and
assembly,
urging
the
government
to
respect
Zimbabweans’
rights
and
aspirations.

HARARE
–
Jacob
Ngarivhume,
the
leader
of
opposition
party
Transform
Zimbabwe,
was
granted
bail
by
the
Harare
High
Court
on
Wednesday.

He
spent
82
days
in
pre-trial
incarceration.

Justice
Emilia
Muchawa
ordered
Ngarivhume
freed
on
US$100
bail.
Conditions
of
the
bail
include
surrendering
his
passport
and
a
prohibition
against
posting
on
social
media
platform,
X.

Ngarivhume
was
arrested
on
August
2
in
the
run-up
to
a
SADC
heads
of
state
summit
in
Harare
on
August
17,
during
which
the
government
feared
protests
by
pro-democracy
activists.
Over
100
activists
were
detained
across
the
country
and
dozens
remain
imprisoned
awaiting
trial,
according
to
rights
lawyers.

The
Transform
Zimbabwe
leader
is
accused
of
disorderly
conduct
in
a
public
place
and
participating
in
an
illegal
gathering
with
intent
to
promote
public
violence,
crimes
he
allegedly
committed
in
June
this
year.