daniel chigunwe
Business Writer
Individuals seeking smaller amounts of foreign currency will be able to have access in the next few weeks with the Government, in collaboration with mobile phone companies, finalising the modalities for the rollout, an official has said.
With 85 percent of domestic transactions now conducted in US dollars, concerns are mounting about the general public’s limited access to foreign currency for essential goods like fuel.
While the Reserve Bank of Zimbabwe prioritised access for importers with verifiable foreign invoices in the latest Monetary Policy Statement, the policy seemingly excludes individuals who require smaller amounts of forex for everyday purchases.
This week, Finance, Economic Development and Investment Promotion Deputy Minister, David Mnangagwa, informed Parliament that the Government was aware some economic agents were not yet accepting the new currency, Zimbabwe Gold (ZiG).
As such, it is critical to cater for the population segment served by these agents.
Deputy Minister Mnangagwa said many Zimbabweans, especially those in rural areas, needed foreign currency for small purchases, even if they were not involved in export business.
He acknowledged the gap saying the Government was working with mobile network operators to find a solution.
The idea was to create a system, like a mobile money exchange platform, that allows people to convert small amounts of ZiG to US dollars and vice versa, thus making the new currency more convenient for daily transactions.
“These are youth, women, people in the rural areas who might not necessarily want to export, but need foreign currency for something,” said the deputy minister.
“There are some barbershops that are not accepting ZiG for now. Many service stations right now are not taking ZiG, henceforth there is a need for that day-to-day transacting.
“Even as we go forward with some of the policies that we are introducing, you would find that the gap has been left behind. Where that gap is left behind is where we then involve the private sector. What the Government has been doing is that we have reached out to our mobile network operators,” Deputy Minister Mnangagwa added.
“We requested two things from them (Econet, Netone, and Telecel) firstly, we have people who want to transact in small amounts. Sometimes you just want to see your US$20 or US$50 in your pocket, can we not have a Netcash platform, a bureau-de-change that can allow exchange from ZiG to US dollar and from US dollar to ZiG?
“That is currently under discussion and you should see that happening in the next few weeks. This is important because it will remove the need for those who want to use small amounts of USD for their day-to-day use.”
He said agents of mobile money platforms such as Ecocash would be expanded, allowing people to withdraw or deposit physical ZiG and US dollars to foster financial inclusion.
People in rural areas will have access to convert or obtain ZiG and US dollars through convenient methods. While the specifics are still being finalised, the overall plan is set to ensure no one is left behind when it comes to foreign currency needs, he added.
The deputy minister said the plan was also meant to avoid people resorting to illegal money changers who risk getting arrested by the police, Deputy Minister Mnangagwa said.
Bongani Ndlovu