Economist and banker Nigel Chanakira argues that the government should consider extending the United States usage policy beyond 2030 to encourage significant infrastructure investments.
In 2023, President Emmerson Mnangagwa introduced Statutory Instrument 218 of 2023, which extended the multiple currency system until December 2030.
Speaking with <a href="https://www.newzimbabwe.com/top-economist-calls-on-mnangagwa-to-extend-us-usage-beyond-2030/">NewZimbabwe.com</a> on Wednesday during the ZIMREAL Property Investment Forum, Chanakira said that Zimbabweans have yet to fully embrace the new currency, ZiG. He said:
<blockquote>
Zimbabwe has been a beneficiary of the US$ currency. To begin with, we shouldn’t be where we are. Normally we want a strong domestic currency. But whatever happened, happened. We can’t run away from reality.
Now that such has happened, we have ended up with the hard currency as the main currency we are using and the one which a lot of people have confidence in. ZiG has been introduced and it’s still gaining momentum but the confidence isn’t out rightly there.
As long as we still have doubting Thomases and you will always have them, guess what? We need to extend the US$ usage tenure. Why? Because we have a deficit of infrastructure funding including housing, water and electricity.
In economics, we talk about medium to long-term funding. In banking terms normally that is a preserve of Building Societies, Insurance Companies particularly life companies and pension funds to fund that infrastructure.
As long as they are funding with US$, then there is a limited life of the foreign currency. Investors will always consider their liabilities.
</blockquote>
Chanakira urged authorities to consider extending the tenure of any medium to long-term funding to attract the right infrastructure. He said:
<blockquote>
So there is a need to take advantage of this. Don’t condemn it, in business we say give the customer what they want.
You don’t try and fight the market. Right now the tenure of the US$ usage is set to end in six years. So what are we saying?
We are therefore limiting the amount of investment from going into what is badly needed and that is infrastructure. I hope the argument is simple, elegant and progressive.
</blockquote>
Meanwhile, on July 4, Mnangagwa said that the new gold-backed currency, ZiG, would become the sole legal tender before the previously announced 2030 deadline to phase out the current multicurrency system. He said:
<blockquote>
In two years, in fact two years is too far off, but there will come a time when our ZiG currency has fully penetrated the market, then I will give a directive that the country will be using the ZiG only.
If you go to the shops to buy with the US dollar, they will refuse it. Even those who were performing and entertaining us today, who were being given US dollar tokens, in two months’ time you (they) will be given the ZiG and no US dollars because that is our currency and we should propel it.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

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An economist, Nigel Chanakira, thinks the government should keep using US dollars past 2030 to help build infrastructure. He says Zimbabweans like US dollars more than their new currency, ZiG. US dollars are needed to fund things like houses, water, and electricity. Chanakira thinks it's important to attract investors by extending the use of US dollars for long-term projects. President Mnangagwa plans to make ZiG the only currency by 2030. Chanakira believes it's better to keep using US dollars to help the country grow.

Top Economist Calls On Government To Extend Multi-currency System Beyond 2030

Nigel Chanakira, a renowned businessman and economist, has said the acceptance of the new currency, ZiG, will be difficult given that the market still prefers the greenback.
He was speaking at a post-2024 Monetary Policy and Outlook Conference on Tuesday which was hosted by NewsDay’s sister paper Zimbabwe Independent.
Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanhu launched ZiG on Friday last week scrapping the Zimbabwe Dollar after the latter had depreciated by more than 70% since January this year.
As reported by <a href="https://www.newsday.co.zw/local-news/article/200025450/zig-difficult-to-accept-in-us-dominated-market">NewsDay</a>, Chanakira asked the conference attendees who were close to 200 to show by raising of hands, which currency they preferred between the US dollar and ZiG. All of them chose the US dollar.
The “survey” raised doubts about ZiG’s longevity and revealed a significant divide between the monetary authorities and the market, as observed by Chanakira. He said:
<blockquote>
I am not sure we are there yet in terms of anchoring our new currency in a context where you can trust it, and believe it…
We need to get back to basics. What is the role of a currency in an economy? How do we produce goods and services and how do we measure the volume of those goods and services and compete in a global economy?
</blockquote>
According to Brains Muchemwa, the chief executive officer of Oxlink Capital, the government’s decision not to require all taxes to be paid in ZiG indicates a lack of interest in the local currency. Said Muchemwa:
<blockquote>
The government has no interest whatsoever in the local currency and I think the conversations in the monetary policy should really be between the RBZ and the Ministry of Finance. Those are the two people that should be having these conferences.
The RBZ on this side and Treasury on that side and the RBZ trying to convince the Ministry of Finance that guys you can’t be asking us to issue a currency that you do not want to support.
The currency is not supported by the central bank as many people would think, that’s not the case and that’s why for many years everything that they have tried has failed because the currency is supported by its issuer and in this instance, its issuer is the government of Zimbabwe.
</blockquote>
Muchemwa added that the government should impose value-added tax (VAT) and PAYE tax exclusively in ZiG, demonstrating confidence in the currency.
Employers’ Confederation of Zimbabwe economist Misheck Ugaro had this to say:
<blockquote>
Business was hoping that we would get an MPS which can now set us in a direction which can localise our costs.
The biggest problem we have in business is that our cost base is US$-based and that makes us very uncompetitive so we were looking for a Monetary Policy Statement position that can fit the localisation of those costs.
So, we are for localisation from US$ to local currency. As to whether the ZiG is the answer, is another question, the jury is out but the spirit is acceptable.
I can say that in the Tripartite Negotiating Forum (TNF) two of the positions that had been put forward are manifesting in this policy the first one being government must tax in local currency.
</blockquote>
Ugaro asserted that the business community expressed dissatisfaction because the taxes to be paid in ZiG were only partial, rather than the full 100%.
ZiG represents Zimbabwe’s sixth attempt to establish a functional local currency. This new currency is backed by 2,522 kilograms of gold and approximately $100 million in foreign currency reserves held by the central bank.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

ZiG Difficult To Accept In USD-Dominated Market - Chanakira

Harare businessman Nigel Chanakira has shared some tips on how motorists can avoid wheel clamping by City Parking marshals.
The Harare City Council recently gave City Parking marshals authority to clamp and fine traffic offenders in the Central Business District (CBD).
<a href="https://twitter.com/nigelchanakira/status/1633487521635082242?s=20">Posting on Twitter</a> on Wednesday, Chanakira said his vehicle was clamped by the marshals while he was in a meeting.
He said he was asked to pay US$130 by City Parking, an amount he said “is totally disproportionate to the offence”.
Chanakira also took to <a href="https://www.facebook.com/572532170/posts/pfbid0KWKbFDXLwnhEKwSyXcXP6CXxUsiZ3uA4GHbnthWm443er8Mi3FAZZ8GTJA3VoZWXl/?mibextid=Nif5oz">Facebook</a> on Thursday where he shared 12 tips on how motorists can avoid falling foul of Harare City Council’s “unjust” by-laws. He wrote:
<blockquote>
We sending this message as an awareness when driving into Harare CBD on happenings that are of serious concern. We don’t want anyone to fall victim to the injurious by-laws in Harare CBD…
Please if you enter Harare city, be more cautious about correctly parking your car than about thieves and touts. Ndezvakudhara zviya.
1. Park your car in the correctly provided lot marked in white. If you can’t see the white, find the white and park there!
2. Make sure your four wheels don’t straddle the white markings. See the white. Don’t do the yellow ⚠
3. Immediately pay for your parking time. Look for the parking marshal within 2 minutes of parking and pay💰
4. Never leave your car before you pay unless you have approached a marshal and you have a person in the car to explain to clamping officers that someone is looking for the marshal.
5. If you’re alone and you can’t see the parking marshal do not leave your car unattended with no parking ticket. Stay there patiently until the marshal comes or is in view.
6. Alternatively you can pay using Ecocash after registering your car reg. no at *192#. Only then can you leave your car without a parking ticket, but with evidence in your phone of time payment done and hours paid for. This is the only explanation that can be entertained once your car is clamped.
7. Please pay for the exact time/ hours not estimate. If your time expires whilst you’re still caught up somewhere, you’ll pay heavily for the 4 minutes expired time. There is no explanation that can be entertained. You’ll lose USD132.00 to Council, penalty for 4 minutes for not paying RTGS900 for 1 hour. That’s the law as it stands. Mari irikutobuda zviripamutemo.
8. If you don’t pay USD132.00 after clamping, in 2 hours your car will be towed for USD50.00 to Council depot where it will attract USD50 storage fee per day until you take it out for another heftier penalty.
9. Never drop or pick up a passenger anywhere in an undesignated area. Parka mota yako woburutsa sekuru kana mbuya kana passenger yawakwidza. Sekuru vanosungwa vakabhadhariswa USD30 zvisina defence, zvakabhekwa nemurawu.
10. DON’T break the parking by-laws banking on a friend or contact at the Council to bail you out.
11. Unsuspecting Motorists and passengers are being sued and fleeced of their hard-earned cash through unscrupulous by-laws and please be warned and warn your other innocent public.
12. Beware of scammers and imposters pausing as Council police adding to the violence.
</blockquote>
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Tips For Harare Motorists On How To Avoid Clamping By City Parking

Business mogul, Nigel Chanakira has announced that he lost his brother Tonderayi who died in a car accident Saturday morning.
Nigel announced the tragic event on Twitter saying he was hit by a vehicle while he was standing at the roadside. He tweeted:
<blockquote>I’m walking alone. I lost my brother Tonderayi Chanakira yesterday around 5: 30pm in a freak car accident when he struck by a motor vehicle whilst he stood at the side of a road. He wore the Chanakira name with pride and was a passionate <a href="https://zero.pindula.co.zw/records-broken-manchester-city-beat-liverpool-at-anfield/">Liverpool FC supporter</a>. MHDSRIP</blockquote>
Nigel, however, did not indicate where his brother died.
<a href="https://www.pindula.co.zw/Nigel_Chanakira">Click here to read more on Nigel </a>

Nigel Chanakira Loses Brother In Freak Accident

<a href="http://www.pindula.co.zw/Nigel_Chanakira">Nigel Chanakira</a> who was the <a href="http://www.pindula.co.zw/Zimbabwe_Investment_Authority">Zimbabwe Investment Authority</a> (ZIA) chairman said he left the organisation on September 30 following the expiry of his term of office.
However, ZIA chief executive officer Mr Richard Mbaiwa declined to comment on the matter before referring this paper to Macro-Economic Planning and Investment Promotion Minister Dr <a href="http://www.pindula.co.zw/Obert_Mpofu">Obert Mpofu</a> who said that Chanakira had not left ZIA.
Chanakira who is the founder of <a href="http://www.pindula.co.zw/Kingdom_Financial_Holdings_Limited">Kingdom Bank</a>, was appointed ZIA board chairman during the inclusive Government in December 2012 by the then Minister of Macro-Economic Planning and Investment Promotion Tapiwa Mashakada.
More: <a href="http://www.chronicle.co.zw/chanakira-leaves-zia/">Chronicle</a>

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