Business Reporter
HARARE – The Zimbabwean government has announced an intensified crackdown on suppliers and manufacturers who refuse to transact in Zimbabwe Gold (ZiG) or charge parallel market exchange rates.
This initiative aims to ensure compliance with national financial regulations and stabilize the economy.
During the presentation of the 2025 National Budget, Finance, Economic Development, and Investment Promotion Minister Mthuli Ncube emphasized the government’s commitment to addressing non-compliance.
“The Financial Intelligence Unit (FIU), which has primarily concentrated on enforcement within the retail sector, is now broadening its scope to target non-compliant manufacturers and suppliers,” Ncube stated.
He added that FIU offices will soon be established in areas beyond Harare to enhance monitoring and enforcement efforts.
The Finance Minister assured that the FIU will take decisive action against businesses that reject ZiG or adopt parallel market rates, stating,
“We will not tolerate businesses that undermine our currency and economic stability.”
Oliver Chiperesa, the FIU Director General, confirmed that bank accounts of manufacturers and suppliers found violating these regulations have already been frozen.
“Some manufacturers and suppliers continue to restrict the volume of ZiG they accept from downstream traders, which remains a challenge,” Chiperesa said.
He noted the implementation of a “dual approach of engagement and enforcement,” emphasizing that several accounts have already been frozen and penalties imposed.
Chiperesa also highlighted the potential benefits of enhanced compliance within the manufacturing sector.
“Improved compliance will generate positive ripple effects across the entire supply chain, ultimately benefiting consumers,” he added.
However, some manufacturers have defended their pricing strategies amid the crackdown.
One manufacturer, who requested anonymity, explained,
“We set prices that allow us to sustain production. Pricing policies that make operations unsustainable would lead to shutdowns. There is a need for engagement to foster mutual understanding.”
As the government ramps up its efforts to enforce compliance, the future of businesses that rely on alternative pricing strategies remains uncertain.
The initiative aims to stabilize the economy and restore confidence in the local currency, but it also raises questions about the balance between regulation and sustainable business practices.
Zim GBC News©2024