Business operators in Zimbabwe will now be required to open bank accounts and install point-of-sale (PoS) machines as part of new licensing requirements. The government announced this measure to promote the use of plastic money and combat the use of unofficial exchange rates.
During a post-Cabinet briefing, Information Minister Jenfan Muswere addressed the issue of some retailers and manufacturers using parallel market rates when selling goods in Zimbabwe Gold (ZiG). He stressed that these new measures are crucial to stabilizing the country’s currency.
“Cabinet noted that some retailers and manufacturers have been reportedly using the unofficial exchange rate in their operations,” Muswere stated. To curb this, the Reserve Bank of Zimbabwe will now enforce stricter licensing requirements under the Shop and Shop Licensing Act, mandating all business operators to have a bank account and PoS machine.
Muswere emphasized the government’s commitment to price stability and the availability of basic commodities. “Government will deploy inspectors to curb misdemeanors that undermine these efforts,” he added.
Despite these new regulations, critics argue that the government is addressing the wrong issue. Citizens often resist using plastic money due to high bank charges. This skepticism could pose a challenge to the successful implementation of the new measures.
In addition to tackling unofficial exchange rates, Muswere highlighted the issue of smuggled and counterfeit goods flooding the market. These goods unfairly compete with local products as they evade taxation and import duties. “The government will increase border patrols, boost the number of inspectors, and implement a whole-of-government approach to address these issues at border posts,” he said.
Penalties will be imposed on those involved in unjust price hikes, manipulation of the ZiG currency, smuggling, and other unfair trade practices. Fines for these offenses will range from a minimum of $200 to a maximum of $5,000 or the ZiG equivalent, depending on the severity of the violation.
The government’s initiative aims to foster a more stable economic environment by ensuring fair trade practices and promoting the use of official exchange rates. By mandating the use of plastic money, authorities hope to create a more transparent and regulated market.
However, the success of these measures will depend on the cooperation of business operators and the effectiveness of enforcement mechanisms. The increased inspections and border controls are intended to create a level playing field for local businesses, but the public’s response to the enforced use of plastic money remains uncertain.
The government’s efforts to stabilize the economy are part of a broader strategy to tackle Zimbabwe’s longstanding currency issues. With the introduction of Zimbabwe Gold (ZiG), authorities aim to establish a reliable currency that can support the nation’s economic activities. Yet, the adoption of ZiG and plastic money faces significant hurdles, including public mistrust and logistical challenges.
As the government rolls out these new requirements, businesses will need to adapt quickly. The mandatory use of bank accounts and PoS machines marks a significant shift in the way transactions are conducted. This change aims to reduce reliance on cash and minimize opportunities for unofficial exchange rate usage.
The enforcement of these measures will be critical in ensuring their success. The deployment of inspectors and increased border controls are steps towards creating a more controlled and transparent market. However, the government must also address public concerns about bank charges and accessibility to banking services.
Zimbabwe’s government is taking bold steps to regulate business practices and stabilize the economy. The new shop licensing requirements, coupled with increased enforcement, are designed to promote the use of official exchange rates and reduce the prevalence of smuggled goods. The road ahead will require concerted efforts from both authorities and businesses to achieve the desired economic stability.
Source: Newsday
