AM BULLETIN 10 FEBRUARY 2025 • Calls Grow for National Dialogue on Local Currency Confidence • RBZ Cracks Down on Self-Deposit Box Abuse and Shadow Banks • Zakaria Jailed for 10 Years Over Knife-Point Robberies • President Mnangagwa Urges Bold Action to End DRC Conflict at SADC-EAC Summit ------------------------------- M.I.S Borehole Drilling Company is your trusted solution for drilling, flushing, deepening, and surveying installations. Visit us at Shop Number 19, Robert Mugabe Street, Zvishavane, or call 0773 514 103 or 0715 397 320. MIS Borehole Drilling – drilling solutions you can trust! ------------------------------- Buy Zimbabwe Chairman, Munyaradzi Hwengwere, has underscored the urgent need for a national economic discourse aimed at restoring confidence in the local currency. He argues that strengthening trust and enhancing domestic demand for the Zimbabwe Gold (ZiG) is imperative if Zimbabwe is to mitigate ongoing foreign exchange imbalances and eliminate persistent debates surrounding export retention thresholds. Speaking to Great Dyke News’ Obert Sithole, Hwengwere attributed the currency volatility to a fundamental lack of confidence among local businesses and consumers. He contrasted Zimbabwe’s scenario with countries such as Zambia and South Africa, where national currencies remain functional even for high-value transactions, such as the purchase of brand-new vehicles, without sparking concern. RBZ Adjusts Export Retention Policy Hwengwere’s remarks come in the wake of the Reserve Bank of Zimbabwe (RBZ) revising its export retention policy, a move that directly impacts exporters—primarily in the mining sector. The RBZ recently increased the surrender requirement on export proceeds from 25% to 30%, thereby reducing the proportion of foreign earnings that exporters retain from 75% to 70%. Announcing the policy adjustment, RBZ Governor Dr. John Mushayavanhu stated: _"To guarantee continued stability in the interbank foreign exchange market, augment foreign currency supply, and bolster foreign reserves required to anchor the ZiG, the foreign currency retention level for exporters has been reduced from 75% to 70%, with immediate effect. Consequently, the effective surrender portion of export proceeds has been increased from 25% to 30%."_ Macroeconomic Implications This policy shift, designed to shore up foreign exchange reserves and support monetary stability, is expected to have far-reaching implications for Zimbabwe’s export sector. Mining firms, which account for the bulk of foreign currency inflows, may face tighter liquidity constraints, potentially affecting investment decisions and production capacity. //////////////////////////////// In a stern warning to businesses bypassing traditional banking channels, the Reserve Bank of Zimbabwe (RBZ) has escalated its scrutiny on the growing misuse of self-deposit boxes and the proliferation of unregulated shadow banks. Governor John Mushayavhu has voiced concerns over the surge in businesses hoarding cash outside the formal banking system, a practice that has led to significant gaps in financial transparency. Speaking at a recent monetary policy briefing, Mushayavhu noted with alarm that certain enterprises were deliberately circumventing banking regulations by withholding cash receipts, opting to store their funds in self-deposit boxes at financial institutions or private security firms. "We cannot have a proliferation of banks that are not regulated," Mushayavhu stated firmly. "Where self-deposit boxes have become unregulated storage sites, operating outside the remit of our financial oversight, it compromises the integrity of the banking system and the economy." The RBZ has made it clear that it is working in close partnership with the Financial Intelligence Unit (FIU) to identify businesses engaging in these practices. "We will be monitoring business turnover closely—specifically the cash component—and tracking its proper deposit into the banking system," Mushayavhu added. Under the Bank Use Promotion and Suppression of Mandatory Act (Zimbabwe), businesses are required to bank all cash receipts, a legal mandate aimed at encouraging formal financial participation and reducing informal sector risks. "In terms of the Bank Use Promotion and Suppression of Mandatory Act, you are supposed to bank all your take-ins," Mushayavhu pointed out, warning that any evasion would attract severe penalties. //////////////////////////////// WE TURN TO CRIME & COURTS – Two men, Munyaradzi Sigareta Zakaria (38) and Zvikomborero Rukoni Zvikoni (29), have been sentenced to 10 years in prison after being found guilty of committing armed robberies in the capital. The duo appeared before the Harare Magistrates’ Court, where they were convicted of robbing victims at knifepoint after luring them into their white Toyota Probox (registration AGC 3919) under the guise of offering transport. The court heard that they, along with two other accomplices still at large, targeted unsuspecting commuters, brandished knives, and forcibly took their belongings. According to court records, on October 20, 2023, the pair executed two separate robberies: • Count 1: Along Harare Drive in Marlborough, they threatened Bernadette Yvete Chafachinoyaura with knives before stealing her Samsung Galaxy M02 phone, US$13 in cash, and a silver engagement ring. • Count 2: On Lomagundi Road, they blindfolded Patience Dadirai Choto, pressed a knife against her, and stole her possessions. The prosecution argued that such violent crimes posed a serious threat to public safety and called for a deterrent sentence. In delivering the verdict, the magistrate emphasized the severity of the offense, stating that the use of weapons to instill fear and rob innocent civilians warranted a lengthy custodial sentence. Meanwhile, authorities continue to hunt for the remaining two suspects involved in the crime spree. //////////////////////////////// AND IN REGIONAL NEWS – President Emmerson Mnangagwa has urged African leaders to take immediate and decisive action to address the escalating conflict in the Democratic Republic of the Congo (DRC). Speaking at the Southern African Development Community (SADC) and East African Community (EAC) summit in Dar es Salaam, Tanzania, Mnangagwa highlighted the growing humanitarian crisis in the DRC’s eastern region, where violence continues to displace thousands and claims innocent lives. In his opening remarks, President Mnangagwa acknowledged the devastating impact of the conflict, stressing that the situation was dire. “Our prayers continue to be made for the affected families and communities,” he said, reflecting on the profound loss experienced by the people of the DRC. President Mnangagwa called on regional leaders to unite and adopt bold measures to restore peace and stability in the DRC, stating, “We must see scalar, bold, and decisive actions to silence the guns on our continent.” He emphasized that the humanitarian crisis in the DRC has far-reaching consequences, not only for the people of the DRC but also for the stability of the entire region. The President stressed the collective responsibility of African nations to address the challenges hindering peace in the DRC. Drawing from Africa’s rich values and the foundational principles of the African Union, the United Nations Charter, and regional agreements like SADC and EAC, President Mnangagwa urged leaders to coordinate their efforts and pursue long-term solutions. “We must remain as solidly united as we were during the struggle for complete emancipation and independence,” he said, urging African leaders to reaffirm their commitment to peace and solidarity. --------------------------------