News / National
Crackdown on businesses rejecting ZiG to intensify
06 Dec 2024 at 16:34hrs | Views
The Zimbabwean government has vowed to intensify its crackdown on suppliers and manufacturers who refuse to transact in Zimbabwe Gold (ZiG) currency or use parallel market exchange rates. The move was announced by Finance, Economic Development, and Investment Promotion Minister Mthuli Ncube during the presentation of the 2025 National Budget.
Minister Ncube emphasized that the Financial Intelligence Unit (FIU) would broaden its enforcement efforts beyond the retail sector to include manufacturers and suppliers. He also announced plans to decentralize FIU operations:
"FIU offices will soon be established in areas beyond Harare to enhance monitoring and enforcement. The FIU will take decisive action against businesses that refuse to accept ZiG or use parallel market rates."
The initiative aims to strengthen the use of the ZiG currency, introduced to stabilize the economy and curb reliance on foreign exchange.
FIU Director General Oliver Chiperesa disclosed that bank accounts of non-compliant manufacturers and suppliers have already been frozen, and penalties imposed:
"Some manufacturers and suppliers continue to restrict the volume of ZiG they accept from downstream traders, which remains a challenge. We are employing a dual approach of engagement and enforcement."
Chiperesa underscored that compliance within the manufacturing sector is critical for stabilizing the entire supply chain and benefiting consumers.
While the government is firm on enforcement, some manufacturers have expressed reservations. A producer who requested anonymity defended the pricing strategies, stating:
"We set prices that allow us to sustain production. Pricing policies that make operations unsustainable would lead to shutdowns. There is a need for engagement to foster mutual understanding."
The crackdown highlights ongoing tensions between the government's push to enforce ZiG usage and businesses grappling with operational realities in an unstable economic environment. The establishment of FIU offices outside Harare is expected to improve oversight, but questions remain about the sustainability of enforcement without addressing broader economic challenges.
As the government doubles down on compliance, the success of the ZiG initiative will depend on achieving a balance between enforcement and fostering a conducive business environment.
Minister Ncube emphasized that the Financial Intelligence Unit (FIU) would broaden its enforcement efforts beyond the retail sector to include manufacturers and suppliers. He also announced plans to decentralize FIU operations:
"FIU offices will soon be established in areas beyond Harare to enhance monitoring and enforcement. The FIU will take decisive action against businesses that refuse to accept ZiG or use parallel market rates."
The initiative aims to strengthen the use of the ZiG currency, introduced to stabilize the economy and curb reliance on foreign exchange.
FIU Director General Oliver Chiperesa disclosed that bank accounts of non-compliant manufacturers and suppliers have already been frozen, and penalties imposed:
"Some manufacturers and suppliers continue to restrict the volume of ZiG they accept from downstream traders, which remains a challenge. We are employing a dual approach of engagement and enforcement."
Chiperesa underscored that compliance within the manufacturing sector is critical for stabilizing the entire supply chain and benefiting consumers.
While the government is firm on enforcement, some manufacturers have expressed reservations. A producer who requested anonymity defended the pricing strategies, stating:
"We set prices that allow us to sustain production. Pricing policies that make operations unsustainable would lead to shutdowns. There is a need for engagement to foster mutual understanding."
The crackdown highlights ongoing tensions between the government's push to enforce ZiG usage and businesses grappling with operational realities in an unstable economic environment. The establishment of FIU offices outside Harare is expected to improve oversight, but questions remain about the sustainability of enforcement without addressing broader economic challenges.
As the government doubles down on compliance, the success of the ZiG initiative will depend on achieving a balance between enforcement and fostering a conducive business environment.
Source - pindula
