In Zimbabwe, there has been significant discussion about the new currency, Zimbabwe Gold (ZiG). The ruling party, Zanu PF, is actively campaigning to promote its acceptance and stabilize the local economy. However, there is some resistance and skepticism from various sectors of society. The government and Zanu PF are working to integrate ZiG fully into the economic framework.
Mthuli Ncube, the Finance, Economic Development, and Investment Promotion Minister and a Zanu PF politburo member, has been vocal in rallying support for ZiG. He has urged war veterans to combat economic sabotage and emphasized their critical role in ensuring the success of the new currency. During a recent meeting in Entumbane, Bulawayo, Ncube drew parallels between their past struggles for liberation and the current economic battle to stabilize and own the national currency.
Ncube highlighted the government’s proactive measures such as reducing interest rates from 130% to 20% per annum, aiming to ease the transition for borrowers to adopt ZiG. He passionately spoke about the necessity of having a sovereign currency, drawing on historical grievances and the long-term vision of economic independence and stability. This narrative was reinforced by Zanu PF Bulawayo chairperson Jabulani Sibanda, who during a community engagement, reminded attendees that the fight for independence was fundamentally about gaining economic control and sovereignty, which includes having a national currency.
The Reserve Bank of Zimbabwe, in collaboration with the Information, Publicity, and Broadcasting Services ministry, has also rolled out joint awareness campaigns about ZiG, with significant backing from key stakeholders. These efforts are part of a broader strategy to shift the predominantly USD-driven transactions to the newly introduced ZiG, which is backed by the country’s gold reserves.
However, the road to ZiG’s acceptance is fraught with challenges. There have been reports of resistance from the populace, with many continuing to rely on the US dollar for daily transactions. The government has responded with legislative measures, including punitive fines for those undermining the new currency, and banks have imposed limits on transfers and purchases made with debit cards in foreign currencies.
Amid these regulatory changes, plain-clothes police officers have been deployed in major shopping centers to enforce compliance, leading to arrests of individuals accused of undermining ZiG. This enforcement drive underscores the government’s commitment to ensuring the success of ZiG, but also raises concerns about civil liberties and the methods used to achieve economic objectives.
In a notable incident highlighting the tensions surrounding currency transition, Patrick Chinamasa, Zanu PF’s national secretary for finance, warned party members against illegal foreign currency dealings, asserting that no one would be immune from arrest. This statement came after the arrest of Women Affair Minister Monica Mutsvangwa’s son, Neville, on charges related to foreign currency dealing and money laundering, signaling the government’s seriousness in clamping down on economic crimes.
Moreover, opposition parties have been accused by figures like Chinamasa of destabilizing the economy and fueling the black market, a claim that illustrates the political undercurrents influencing the economic dialogue around ZiG. The party leadership’s interactions with RBZ officials and grassroots mobilization efforts indicate a concerted effort to solidify party support for the currency initiative.
As Zimbabwe navigates this complex transition, the role of Zanu PF in promoting ZiG has become increasingly intertwined with broader national efforts to achieve economic stability. The engagement of political figures, war veterans, and the implementation of stringent measures against currency sabotage are all part of a multi-faceted approach to foster acceptance of ZiG. While the government’s intentions of economic sovereignty are clear, the methods and the political dynamics at play continue to be a subject of significant debate and scrutiny, reflecting the intricate relationship between politics and economic policy in Zimbabwe’s quest for stability and growth.
Source: Newsday
