Farai Dziva|Non Governmental Organizations in Masvingo have threatened to withdraw aid following a directive by government to stop foreign currency disbursements.
Government has with immediate effect directed all non-governmental organisations operating in the country who have been giving aid in the form of foreign currency to either buy food using the money and donate to the beneficiaries or give out local currency.
This comes after Government outlawed the multi-currency regime and restricted domestic transactions to local currency through Statutory Instrument (SI) 142 of 2019, in an effort to enhance the affordability of goods and services by the majority.
The Government recently had a meeting with the World Bank and United Nations representatives as well as embassies in the country through which humanitarian aid comes to deliberate on the matter and ensure that SI 142 is fully implemented.
“As you are aware I am the chairperson of the inter-Cabinet Committee that deals with disaster and climate change, recently we had a meeting with World Bank and United Nations representatives as well as embassies.
The Minister of Finance (and Economic Development, Professor Mthuli Ncube) was there, the Minister of Public Service (Labour and Social Welfare Dr Sekai Nzenza) was there as well as other ministries,” said Minister July Moyo.
“We discussed how best we can get help as a country. We told them that non-governmental organisations should stop giving beneficiaries US dollars or any other foreign currency. If they so wish to give them money, they should give them local currency.
The argument was we have removed the multi-currency regime and restricted domestic transactions to local currency and most people in rural areas to which most of the aid goes will not be able to use the money.”
However NGOs in Masvingo have vowed to withdraw aid as a result of the government directive.
“The directive will result in donor fatigue and widespread protests.
The directive will grossly affect our operations,” said a COTRAD official.
