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Cabinet has reviewed a comprehensive report on basic commodity prices and local industry constraints, presented by Vice President Gen (Rtd) Dr. CGDN Chiwenga.
The discussion included strategies to operationalize the ZiG currency as legal tender and address issues affecting the economy.
A de-dollarisation roadmap, developed by the Minister of Finance, Economic Development, and Investment Promotion, outlines steps to shift away from the use of foreign currencies. Despite these efforts, some retailers and manufacturers are reportedly using unofficial exchange rates, impacting price stability and commodity availability.
To enhance the adoption of plastic money, the Reserve Bank of Zimbabwe will enforce stricter licensing requirements. Under the Shop and Shop Licensing Act, all business operators must have a bank account and a Point Of Sale (POS) machine. Additionally, inspectors will be deployed to ensure compliance and address practices that undermine price stability.
Cabinet also highlighted the challenge posed by smuggled and counterfeit goods, which unfairly compete with local products by evading taxes and import duties. The government plans to increase border patrols, boost inspector numbers, and implement a Whole-of-Government Approach to combat these issues effectively.
To address price manipulation and unfair trade practices, the government will enforce stricter penalties. Fines for offences such as unjust price hikes and smuggling will be increased, with penalties ranging from US$200 to US$5,000 or the ZiG equivalent. Licensing procedures will be streamlined to enhance efficiency by consolidating processes into a single office.
Additionally, Cabinet noted the significant amount of idle and underutilized industrial space, including empty buildings and rail infrastructure. An Inter-Ministerial Task Force will be established to identify and coordinate the use of these abandoned assets, aiming to revitalize industrial capacity.
