Guvamatanga remarks expose a rotten system

Finance Minister Mthuli Ncube's proposed 2026 cash withdrawal levy has ignited fierce debate, as critics argue it disproportionately burdens ordinary citizens while leaving politically connected elites untouched. The measure, aimed at curbing the flow of funds from formal banks to informal channels, has exposed deep contradictions in Zimbabwe's financial governance.

Permanent Secretary for Finance George Guvamatanga recently questioned the need for corporations to withdraw US$5 000 in cash, implicitly framing large cash withdrawals as unnecessary. Yet, the government has never scrutinized how figures like Kudakwashe Tagwirei, presidential advisor Paul Tungwarara, Wicknell Chivayo, or even President Emmerson Mnangagwa himself move vast sums in cash for highly visible political handouts. This glaring discrepancy highlights a two-tiered system in which ordinary citizens face levies and interrogation, while elites operate with impunity.

The controversy underscores that cash in Zimbabwe is not merely a transactional medium but a tool of opacity, enabling patronage networks, masking corruption, and consolidating political power. Digital alternatives exist, yet the political elite continue to rely on untraceable cash, raising urgent questions about the sources and accountability of these funds.

Economists and business leaders warn that the levy will increase transactional costs, discourage formal banking, and push more citizens into the informal sector, effectively rewarding a system that selectively enforces rules. Unless the government applies financial discipline equally to all, levies on ordinary withdrawals will merely expose the rot at the heart of economic governance and deepen public cynicism about Zimbabwe's financial system.

In short, the policy risks penalising the governed while leaving the governors untouched, making informal channels not a choice but a rational response to a system perceived as unfair, opaque, and deeply politicised.