By Business Reporter-The Reserve Bank of Zimbabwe (RBZ) has raised alarm over millions of dollars lying idle in cash deposit boxes across the country, a growing trend that is starving the economy of much-needed liquidity.
While the central bank did not mention names, its latest statement appears to be aimed at controversial businessman and Zanu PF loyalist Wicknell Chivhayo, along with his associates like gold dealer Scott Sakupwanya, who frequently flaunt vast amounts of foreign currency on social media.
Chivayo, a self-styled tycoon with a well-documented history of fraud and shady dealings, has become infamous for his ostentatious displays of wealth.
He has splurged on an extravagant fleet of luxury vehicles—ranging from Rolls Royces to Bentleys and Lamborghinis—some of which he has gifted to musicians, socialites, and influencers in exchange for public endorsements of President Emmerson Mnangagwa’s Vision 2030 agenda.
Despite his extravagant lifestyle, Chivhayo has never publicly declared his sources of income or provided proof of financial legitimacy, fueling widespread speculation about his dealings.
He has previously been implicated in high-profile scandals, including a multi-million-dollar Zimbabwe Power Company (ZPC) tender fraud case in which he was accused of receiving $5 million for a power project that never materialized.
Announcing his 2025 Monetary Policy Statement, RBZ Governor John Mushayavanhu cautioned against the growing trend of businesses and individuals hoarding large sums of cash outside the formal banking system.
“There are manufacturers who are supplying goods to the informal market but are not banking their proceeds. They are keeping these monies in their cash boxes, which is not in line with the Anti-Money Laundering Act. The Financial Intelligence Unit (FIU) will not just watch but will dismantle this practice,” Mushayavanhu stated.
The central bank governor emphasized that stockpiling cash presents unnecessary risks, especially in light of recent increases in prepaid credit limits and attractive interest rates on savings accounts.
“The issue here is that robbers have been targeting buses, especially cross-border traders, and stealing their cash. There is no need to keep large sums of money in cash when one can simply upload their funds onto a card, with limits now increased to US$1 million. We have also adjusted interest rates on savings accounts, which makes banking more attractive,” he explained.
To instill confidence in the local banking sector and encourage a culture of saving, the RBZ has implemented incremental increases in interest rates on deposits.
However, whether the central bank will take concrete action against individuals like Chivayo—who continue to operate outside the formal financial system while openly displaying unexplained wealth—remains to be seen.