By Rutendo Mapfumo
The Hwange business community is being encouraged to embrace the recently introduced Zimbabwean Gold Currency (ZIG) as a means to stabilise the local economy.
Hwange, a mining town with a significant tourism industry, serves as an economic hub for the region.
Despite various economic activities in the district, some businesses, particularly retailers, have been reluctant to accept the ZIG currency. Instead, they continue to charge exorbitant prices for basic commodities, often only accepting US dollars.
A survey by Indonsakusa recently found that supermarkets such as OK and TM in Hwange’s central business district are freely accepting ZIG, while smaller retail shops are rejecting it.
In an interview, Peterson Ncube, the Zanu PF Hwange Coordination Committee DCC Secretary for Business Development, was optimistic that the ZIG currency had the potential to revitalise the country’s economy.
However, he acknowledged the challenges faced by Hwange in adopting the new currency.
“The challenge in Hwange is that most small and medium enterprises do not have bank accounts or physical access to banks where they can withdraw ZIG and allow it to circulate,” he explained.
While some individuals remain skeptical about the ZIG currency, Ncube emphasised the importance of conducting comprehensive awareness campaigns to educate both vendors and the general public about its benefits.
“There is a need for awareness campaigns targeting vendors, where they can learn about the economic advantages of using ZIG at a national level. We must support the government’s initiative and educate the public about ZIG; otherwise, the lack of knowledge will be exploited by the black market, potentially harming the community,” he noted.
Joshua Kwidini, a Hwange entrepreneur, acknowledged the noble idea behind the ZIG currency but highlighted the challenge of its unstable exchange rate.
“There are commodities that we strictly order in US dollars, and some orders are bought at a higher rate of 1:17 instead of the bank rate of 1:13. This adversely affects small businesses like ours, as the inflated prices result in losses”, he said.
In response to the resistance from certain businesses, the Consumer Protection Commission, in collaboration with the police and the Financial Intelligence Unit, has initiated a crackdown on establishments that reject the Zimdollar. The aim is to enforce compliance and encourage wider acceptance of the ZIG currency throughout Hwange.
As Hwange continues to navigate the introduction of the Zimbabwean Gold Currency, it is essential for the business community, government, and relevant authorities to work together in addressing the challenges and maximizing the potential benefits of this new currency for the local economy.
