‘Why does Mnangagwa expect a stable Zimbabwe Dollar when his own government is rejecting it’

The decision by President Emmerson Mnangagwa’s administration to peg all business registration fees in United States dollars has been described as a reflection that the Zanu-PF regime itself has no confidence in the Zimbabwe dollar.

This comes after the government issued Statutory Instrument 95 of 2023 with new registration fees for businesses cited in US dollars.

The economy is seemingly rejecting the local currency with prices of basic commodities skyrocketing every time. A loaf of bread is being sold at over ZWL12 000 in big supermarkets.

Instead of promoting the Zim Dollar which is now too volatile, the government is also pricing its services in US dollars.

“IT is hereby notified that the Minister of Justice, Legal and Parliamentary Affairs has, in terms of section 301(1)(a) of the Companies and Other Business Entities Act [Chapter 24:31], made the following regulations:-

“These regulations may be cited as the Companies and Other Business Entities (Fees) (Amendment) Regulations, 2023 (No. 2). 2. The Schedules to the Companies and Other Business Entities (Fees) Regulations, 2020, published in Statutory Instrument 47 of 2020, are repealed and the substitution of……,” read part of notice.

Journalist and political commentator Hopewell Chin’ono described the move by the government as a demonstration that it does not have faith in the local currency.

“The Government of Zimbabwe has issued a Statutory Instrument with new registration fees for businesses and more. Everything is priced in US Dollars.

“This demonstrates that the Zimbabwean Government has no faith in its own local currency.

“Why does President Mnangagwa expect a stable Zim Dollar when his government is rejecting it, and pricing Government services in US Dollars?

“It is common sense isn’t it? But common sense is not common in this regime! Until the Government starts valuing its own currency, and using it as the first currency of choice, the US Dollar will remain King.

“When I buy a car in London and ship it to Zimbabwe, I expect a serious Government that values its own local currency to demand customs duty in Zim Dollars!

“If it demands US Dollars, the local currency will collapse,” he said.

Recently, Mnangagwa blamed the ongoing local currency devaluation on businesses taking advantage of cheap foreign currency and sabotaging the government.

“We even wonder if at all we are dealing with business anymore, or with politicians disguised as company executives, seeking a political upset,” Mnangagwa said.

At the Zimbabwe International Trade Fair in April last year, Mnangagwa said: “Business cannot purport to support government by day and sabotage it by night and thereafter play victim.”