Government to penalise Forex-only traders

Business Reporter
GOVERNMENT is investigating business enterprises run by foreign nationals in reserved sectors amid indications that in some instances both local and foreign-owned firms are rejecting trading in local currency.

The rejection of local currency and mobile payment platforms is blamed for fueling parallel market activities as often consumers are forced to seek foreign currency to access certain services.

In a post-Cabinet media briefing on Tuesday, Information, Publicity and Broadcasting Services Minister, Senator Monica Mutsvangwa, said business operators engaged in the illegal activity are inconveniencing the public. “The nation is also being informed that investigations into the operations of foreigners in sectors reserved for locals are being intensified,” she said.

“Local and foreign businesses that are fueling smuggling and parallel market activities and inconveniencing the public by rejecting the local currency as well as mobile payment platforms will be penalised,” said the minister.

Consumers have long expressed concern over acts of sabotage by some businesses, which stand accused of trading certain products only in forex in defiance of a clear monetary policy.

In order to ensure stability and promote ease of transacting, the Government has allowed the use of both the local dollar and foreign currency within the framework of a multi-currency principle, which has been entrenched into law.

However, some businesses are now bypassing set policy provisions by refusing local currency sales for selected basic goods.

In 2020, the Confederation of Zimbabwe Retailers (CZR) hinted that it was working with the Government to formulate a database of all players operating in the country’s reserved sectors in a move aimed at formalising the businesses and their contribution to the economy.

The reserved sectors are agriculture (primary production of food and cash crops), transportation, retail and wholesale trade, barbershops, hairdressing, and beauty salons, employment and estate agencies and grain milling as well as bakeries, tobacco grading and packaging, tobacco processing, advertising agencies, milk processing and provision of local arts and crafts, marketing and distribution.