HARARE – The Zimbabwean Parliament this week engaged in a debate on a motion tabled by the Deputy Minister of Finance, Investment Promotion and Economic Development Kudakwashe Mnangagwa to repeal Statutory Instrument (SI) 118. SI 118 which previously allowed businesses to charge a 10% margin on top of the official exchange rate when selling goods and services.
Mnangagwa, argued that the 10% margin was no longer necessary due to the introduction of the Zimbabwe dollar (ZiG), a new currency backed by gold, minerals and forex reserves.
He highlighted the punitive measures included in the amendment schedule, stating,
“This amendment will also provide that sellers of goods and services will be guilty of a civil infringement if the offer of such goods and services are above the exchange rate as published by the Reserve Bank.
“We also seek, Mr. Speaker, to put a fixed penalty of ZiG200 thousand for offenders in the Schedule.”
Zanu-PF MP Clemance Chiduwa commended the Ministry of Finance for taking action against “economic saboteurs,” those who exploit the black market and undermine the national currency.
He emphasised, “The parallel market rate is a cancer that is affecting the economic fabric of this country. The parallel market rate is fighting the core-values that defines who we are in terms of where we want to be as a country.”
Chiduwa called for stricter enforcement measures, including jail terms for repeat offenders and improved flagging systems within the banking sector to track suspicious transactions. He proposed that the ZiG become the primary currency, with the US dollar as an optional currency.
Marondera East legislator Vimbai Mutokonyi, echoed Chiduwa’s sentiments regarding the importance of a stable currency for economic growth.
Mutokonyi advocated for harsher penalties for those who break the law, stating, “The proposed structure by the Hon. Deputy Minister, I do support it because if we are to stop this menace, we have to come up with punitive fines.”
However, Corban Madzivanyika expressed reservations about the timing of the SI repeal. He questioned whether enough time had passed to assess the effectiveness of the ZiG and whether businesses had been adequately consulted.
“The business community is part of the economic fabric of this nation,” he argued. “We also need to consider their issues and their plight,” he argued.
Zanu-PF chief whip Pupurai Togarepi, on the other hand, believed the Minister had acted at the right time to prevent further exploitation of loopholes.
He argued, “If the reasons why we had that margin of 10% is no longer there, I think the Governor of the Reserve Bank was very forthright. He said if you want gold, if you want your United States dollar at any stage, it will be available.”