Paul Nyathi|MDC Vice President Tendai Biti has denounced the latest government mouse which obliges exporters to pay for electricity in US Dollars saying the move is a clear sign that de-dollarisation will simply not work.

“The regime has just gazetted SI 249 of 2019 which obliges exporters to pay for electricity in US$. This is further proof that de-dollarisation is not working and will not work,” said Biti.

“Quite clearly the instrument is null and void. The RBZ does not have the powers of currency selectivity.

“The regime’s penchant for rule by regulation is dangerous and authoritarian. Only autocratic regimes bypass Parliament and rule by decree.

“The country is being run by clueless louts on the basis of ill-thought kick and hope policies and policy reversals have become the order of the day.”

According to the new regulations, exporters will now have to pay Zesa in foreign currency, the Reserve Bank of Zimbabwe (RBZ) ordered yesterday in a statutory instrument, and Zesa can only use that foreign currency to pay for electricity imports, spare parts or critical equipment, foreign loan repayments and foeign insurance premiums.

Even exporters that export less than 80 percent of their output will still have to pay 35 percent of their electricity bills in foreign currency, although they can pay the whole lot in forex if they want to and the Zimbabwe Energy Regulatory Authority and the RBZ have to approve.

The new regulations are contained in Statutory Instrument 249 of 2019, titled Exchange Control (Payment for Electricity and Related Services in Foreign Currency by Exporters and Partial Exporters) Order, 2019.