Online Reporter
Martin Kadzere
The Confederation of Zimbabwe Industries has urged the Reserve Bank of Zimbabwe to formalise its proclamations on de-dollarisation through clear legal instruments.
The business lobby says this move is critical to strengthening business confidence and attracting investment.
The call comes amid lingering concerns from the 2019 currency reforms that left many businesses exposed.
In its submissions to the Ministry of Industry and Commerce during an engagement meeting with Business Member Organisations this week, the CZI emphasised that verbal commitments, while appreciated, are not enough to instil the certainty required by businesses.
It specified three key areas that need legal protection: the preservation of United States dollar balances, the protection of US dollar-denominated obligations and guarantees of monetary stability.
The move to formalise these assurances is a direct response to the turbulent events of 2019. At that time, the RBZ, through Statutory Instrument 142 of 2019, abruptly abolished the multi-currency system and designated the RTGS dollar as the sole legal tender.
This effectively converted existing US dollar balances to the new local currency at a 1:1 rate, a move that severely eroded the savings and obligations of many businesses and individuals, creating a deep-seated trust deficit.
“Clear legal instruments will provide certainty and build trust with industry and investors,” says the CZI.
Without formal backing, current assurances could be reversed, repeating the currency shock of 2019 and destabilising the market.
The industry’s position is that a clear and legally binding framework is the only way to provide long-term predictability and rebuild the trust essential for economic growth.
The Government’s plan is to have a multi-currency system in place until 2030. The RBZ has indicated its plan to roll out a formal de-dollarisation roadmap which will be part of National Development Strategy 2 (NDS2) which will replace the current NDS1.
In its submissions, the CZI also highlighted the urgent need for the Government to settle its significant domestic debt with the private sector. The arrears, which include outstanding payments to contractors and maturing Treasury Bills, are posing “existential risks to companies”.
It recommended a clear roadmap for debt settlement, suggesting that the Government could prioritise the oldest arrears or firms in critical economic sectors.
“There is an urgent need for structured dialogue between the Government and the private sector to address the outstanding domestic debt owed by the Government. The scale of the arrears is significant, with some debts posing existential risks to companies,” said CZI.
Furthermore, CZI has called for changes to the country’s currency and tax policies to build confidence and ease pressure on businesses. It also proposes lowering the 30 percent foreign currency surrender requirement for exporters, citing a recent decline in manufactured exports.
In addition, the CZI recommended making the Intermediate Money Transfer Tax (IMTT) deductible for businesses to shift the burden away from the formal economy.
The CZI called for a thorough technical validation of the upcoming Zimbabwe National Industrial Development Policy II (2026–2030). It emphasised that this “stress test” was crucial to confirm the policy’s effectiveness in achieving structural transformation. Given the five-year timeframe, the CZI insists that all policy measures must lead to concrete, measurable industrialisation results.
“The draft Zimbabwe National Industrial Development Policy II (2026–2030) must undergo a rigorous technical validation process,” said the CZI.
“This ‘stress test’ is necessary to assess whether the framework is robust enough to achieve its structural transformation objectives. Given that five years is a significant time horizon, policy measures must translate into tangible industrialisation outcomes.”
