By Dr. Masimba Mavaza | The malignant force currently waging war against Zimbabwe’s gold is the black market. The survival of ZiG hinges on the efficacy of the counterattacks directed at the black market. Failure to confront the black market with equal force as one would an adversary would spell doom for ZiG. But what exactly constitutes the black market, and who orchestrates its operations?
The black market denotes economic activities conducted outside sanctioned government channels. These illicit transactions typically circumvent government regulations, such as price controls and taxes, either by trading illegal goods/services or by avoiding taxation on legal ones. The strength of any economy is often gauged by the vigor of its black market. Such clandestine operations thrive on corruption, often involving individuals wielding significant power. It’s imperative to introspect and scrutinize our business partnerships before assigning blame elsewhere.
To uproot the black market and safeguard Zimbabwe’s economy, it’s crucial to target its origins comprehensively. Whether dealing with physical or virtual transactions, the black market operates beyond legal frameworks, making detection challenging. While its name originated from racial connotations, it signifies the opacity of its activities compared to legitimate markets.
Even seemingly legal businesses can contribute to the black market by evading taxes or regulations. The black market’s encroachment on ZiG, offering an alternative currency in US dollars, erodes ZiG’s value. Those controlling the US dollar exert influence over its users, exacerbating economic instability. Only those with abundant US dollars can effectively counter the black market’s influence.
Efforts to combat the black market are hindered by its clandestine nature, complicating accurate assessments of its scale and impact. Unemployment and government restrictions often drive individuals into illegal activities, further fueling the black market’s growth. Cash transactions dominate these underground markets to evade scrutiny.
Black markets undermine legitimate businesses, distort market dynamics, and deprive governments of revenue. The absence of official records skews economic indicators, understating a country’s GDP. To curtail black market activities, a concerted effort is needed to apprehend its key players, regardless of their proximity to power.
Ultimately, individuals’ actions determine the fate of Zimbabwe’s currency. Honest efforts to combat the black market and support the official economy are essential. In this struggle, every citizen plays a pivotal role in safeguarding Zimbabwe’s future.