Mnangagwa Scares Away Investors
15 June 2021

By A Correspondent- The government through the Reserve Bank of Zimbabwe has declared war against white-owned companies and accused them of abusing foreign currency.

The RBZ released a statement Tuesday and said the companies that were found out by its Financial Intelligence Unit will be fined.

The companies include National Foods (Pvt) Ltd, Georgia Petroleum (Pvt) Ltd, Tettola Investments (Pvt) Ltd, Africa Steel (Pvt) Ltd, Westville Investments (Pvt) Ltd (T/A Omni Africa), Flicknik Enterprises (Pvt) Ltd, Duo Valley Commodity Brokers, Faircclot Investments, GlenuLas Trading, Natural Stone Export Company, Nuvert Trading, Phirebrook Investments, Classic Energy, Clorex Energy, Explochem, Mutare Mart & Exchange, Souzcre Fuels and Kimya Investments.

According to a recently gazetted anti-business investment law SI 127 of 2021, businesses that access foreign currency on the RBZ Foreign Exchange Auction System (introduced last year) and then proceed to peg prices using parallel market rates may face a maximum fine of ZW$50,000. Any business that puts a premium on goods and services in local currency to induce consumers to pay using foreign currency will face a penalty of ZW$50,000.

The RBZ said that the accused companies shall be dealt with under SI 127.

“The Bank has a duty of care to ensure that the significant progress that the economy made since the introduction of the foreign exchange auction system in June 2020 continues on an unabated positive trajectory whilst at the same time protecting consumers and fostering compliance to engender fair play in the economy. It is against these noble objectives that SI 127 was put in place to provide for penalties against errant entities that were at the forefront of abusing the foreign exchange auction system to the detriment of the stability of the economy.

Accordingly, after investigations by the Financial Intelligence Unit and the Bank’s Exchange Control Division, the entities listed hereunder which were abusing the foreign exchange auction system shall be dealt with in accordance with SI 127,” read the statement by RBZ Governor Dr John Mangudya.