ZIMBABWE | Industry is grappling with forex shortage as banks withhold funds for inputs, jeopardizing Zimbabwe Gold acceptance. Businesses face hurdles in accessing USD for vital imports, hindering ZiG’s adoption despite its launch to replace the Zimbabwe dollar on April 5, 2024. Confederation of Zimbabwe Retailers president Denford Mutashu disclosed manufacturers’ struggles during recent discussions. Manufacturers, sitting on ZiG 130 million, find themselves unable to procure raw materials due to suppliers’ demand for USD. Banks’ unresponsive stance aggravates the situation, leaving businesses stranded.
A source revealed banks’ forex scarcity despite government assurances of availability via the interbank market. Lawrence Nyazema of the Bankers Association of Zimbabwe acknowledged slight improvements in forex supply but highlighted challenges for ZiG loan holders. Economist Farai Mutambanengwe criticized the confusion surrounding ZiG’s value and its imposition on the market, leading to skepticism and reluctance among players.
