Zimbabwe in chaos: new currency rollout sparks confusion and frustration

HARARE – Confusion and frustration grips Zimbabwe as businesses reject the old currency following the Reserve Bank of Zimbabwe’s announcement of a new national currency, the ZiG.

The new RBZ governor John Mushayavanhu introduced the ZiG last week, saying the new notes and coins would be available on April 30th.

This has, however, left people confused and frustrated as some businesses are refusing to accept the old currency, the Zimbabwean dollar (ZWL).

The Consumer Protection Commission (CPC) is working with the police and the Financial Intelligence Unit to crack down on businesses that won’t accept ZWL.

“It is important to note that the ZWL remains legal tender,” said Kudakwashe Mudereri, a manager at the CPC. “Those found violating regulations by refusing to accept ZWL will face heavy penalties.”

However, many businesses are arguing that the government has effectively banned the ZWL by introducing ZiG. This has caused problems for people who need to buy essential goods and services, such as electricity tokens from Zimbabwe Electricity Supply Authority (ZESA).

The situation is further complicated by the fact that not all banks have converted ZWL balances to ZiG yet.

This has led to accusations that the RBZ is mishandling the currency rollout. “The introduction of ZiG has been chaotic,” said Effie Ncube, a spokesperson for the National Consumer Rights Association. “This will kill confidence in the new currency.”

Economists are also worried about the rollout. “The failure by most banks to convert ZWL$ balances and the postponed rollout will suck out the confidence that had been built up,” said an economist with a leading financial institution.

Meanwhile, the Amalgamated Rural Teachers Union of Zimbabwe (ARTUZ) president Obert Masaraure believes the new currency is meant to punish the poor. “There is a supposed transitional period, but government departments are not accepting the ZWL,” he said.

Critics of the RBZ’s approach argue that forcing businesses to accept a currency through police action will ultimately fail.

Hopewell Chin’ono, a journalist, said ‘When you use the police and secret service to force businesses to accept a currency, that is the beginning of the end for that currency. You will end up with empty shelves because nobody wants to sell at a loss!”

Chin’ono went on to say that this approach will distort the market and lead to black markets. “Fix the economy instead of these jackboot tactics!” he concluded.

The RBZ’s communications and transparency have also come under fire from opposition politician Fadzayi Mahere following the announcement of a new national currency.

In a statement this week, Mahere called for a complete overhaul of their public engagement strategy.

Her criticism lies in the lack of clear and accessible information surrounding the new currency.

Confusion emerged on the supposed “Day 1” of the rollout, with banks, mobile money platforms, businesses, and the general public left in a state of disarray. Mahere argues that this is a direct consequence of the Bank’s inadequate communication efforts.

“Part of fostering confidence is having timely, reliable and accessible means of informing the public in advance of key developments.

“Use official RBZ channels for updates. Don’t bury key information in a random link. Don’t let polarizing social media trolls be first with important news,” she said.

“Your sensitisation efforts have been inadequate. The public is confused. Day 1 of the currency that you said would come into effect immediately and banks, payment platforms, mobile networks and businesses are a flurry of confusion. You need to step up.

“Use all languages. Make adverts. Address stakeholders. Get a social media manager. Remember that over 61% of the population live in rural areas. Persons with disabilities must also be catered for. Include everyone.

“Make sure all addresses by the Governor are live-streamed on your channels and key news houses. Make sure your presentations are also aired on the public broadcaster and on radio.

“Use infographics. Most people won’t read 100 pages. Summarize your key points in simple lay language that ordinary people understand. Avoid jargon in public communication,” Mahere proposed.

The former Mt Pleasant MP added: “Be inclusive. Charging US$100 to unpack a monetary policy statement that has wide ramifications for every person, rich or poor, is not a good look. Take explanations to the public.

“Avoid ambush. Give fair notice. Engage stakeholders before making policy. Get feedback on realistic timelines for implementation so that you’re not changing time frames a day after announcement,” Mahere added.