Shortage of ZiG coins, notes affects Bulawayo vendors

Informal traders in Bulawayo are grappling with significant challenges due to the scarcity of Zimbabwe Gold (ZiG) notes and coins, which has severely impacted their ability to conduct business effectively.

Introduced in April as a replacement for the defunct local currency, ZiG was meant to stabilize transactions amid rampant inflation. However, its controlled release by authorities, aimed at preventing abuse by money changers, has left informal traders without adequate cash to operate.

This situation has led to a notable loss of customers to established businesses equipped with swipe machines, which offer greater convenience for electronic payments.

Percy Mcijo, director of the Bulawayo Streetwise Informal Traders Association, highlighted the dire consequences of the ZiG shortage, emphasizing that most informal traders lack access to point-of-sale devices. This limitation not only hampers their ability to compete but also slows down business transactions significantly.

Mcijo noted that informal traders now find themselves scrambling for scarce US dollars and rand in the market, further complicating their financial operations and reducing their overall profitability.

Tendewukai Ndlovu, a vendor from Nketa 9 high-density suburb, echoed these sentiments, revealing that many of her regular customers are forced to resort to purchasing goods on credit due to the lack of hard cash.

This practice is particularly challenging for vendors selling perishable items, who risk potential losses if credit payments are not promptly settled. Despite assurances from the Reserve Bank of Zimbabwe regarding adequate ZiG issuance backed by cash and gold reserves, informal traders continue to face significant hurdles in maintaining their businesses amidst the ongoing economic uncertainties.