By Business Reporter- Zimbabwe’s business community is grappling with a severe shortage of foreign currency in the formal market, threatening their ability to restock essential goods.

The Confederation of Zimbabwe Industries (CZI) has confirmed this development, warning of an impending shortage of essential commodities if the situation is not addressed.

CZI has called on authorities to assist manufacturers in accessing foreign currency through the Willing Buyer Willing Seller (WBWS) platform.

CZI CEO Sekai Kuvarika acknowledged that while some stability has been observed in the market, businesses are still finding it increasingly difficult to secure the forex needed to keep their operations running. She stated:

“This is a serious issue. Manufacturers are struggling to access forex, which is essential for their operations. We are in continuous dialogue with the monetary authorities to find a solution. Although there is some market stability, the inability to access forex remains a significant challenge, particularly for the importation of raw materials. As you know, Zimbabwe’s manufacturing sector is highly import-dependent—over 70% in most cases.”
Kuvarika added that the CZI, the nation’s largest business lobby group, has engaged Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanhu on the matter. She said:
“We have met with the Governor to discuss the accumulation of Zimbabwean dollars (ZiG) due to limited access to foreign currency for importing raw materials. From our discussions, it appears the RBZ is considering the law of averages, suggesting that manufacturers may have substantial US$ sales locally, potentially reducing their overall forex needs.”

Economic analyst Rufaro Zengeni criticized the current WBWS platform, arguing that it needs to be liberalized. He commented:
“There are contradictions in the current system. If the RBZ has fixed the exchange rate and people are not allowed to bid higher, this creates a shortage. Despite the scarcity of forex, prices haven’t moved in the past three months. This discrepancy indicates a fundamental problem with our price discovery mechanism.”
Economist Prosper Chitambara warned that the forex shortage on the official market is contributing to the devaluation of the ZiG and rising inflation. He explained:
“It seems there are not enough willing sellers of foreign exchange to meet the high demand from buyers. As a result, many businesses are turning to the parallel market for forex, leading to the depreciation of the ZiG. This is a clear example of the mismatch between forex demand and supply on the formal market.”
Another economist, Gift Mugano, revealed that some businesses are only securing a fraction of their forex requirements. He stated:
“Business executives have informed me that they are struggling to access forex from banks, with some only obtaining 5-10% of what they need, despite assurances from the RBZ. This high demand for US$ has caused exchange rates to surge, with rates now ranging between ZiG22.30/US$1 and ZiG24/US$1.”