Govt intensifies clampdown on non-compliant businesses
LIVINGSTONE MARUFU
The government has intensified its crackdown on suppliers and manufacturers across Zimbabwe who either refuse to transact in Zimbabwe Gold (ZiG) or charge parallel market exchange rates.
This initiative is part of a broader strategy by the Government to mitigate potential volatility in both the exchange rate and inflation.
The measures were confirmed by Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube during the presentation of the 2025 National Budget.
“The Financial Intelligence Unit (FIU), which has primarily concentrated on enforcement within the retail sector, is now broadening its scope to target non-compliant manufacturers and suppliers. FIU offices will soon be established in areas beyond Harare to enhance monitoring and enforcement. The FIU will take decisive action against businesses that refuse to accept ZiG or use parallel market rates,” stated Prof. Ncube.
To uphold market discipline and ensure compliance, the government will continue monitoring and enforcing the provisions of the Bank Use Promotion Act [Chapter 24:24] and the Exchange Control Act [Chapter 22:05]. These efforts align with the government’s economic stabilisation agenda.
“Compliance levels remain high among formal businesses,” Prof. Ncube noted, emphasizing the importance of maintaining this momentum.
The renewed crackdown follows a series of enforcement actions by the FIU, including freezing accounts of manufacturers and suppliers found violating regulations.
FIU Director General Oliver Chiperesa highlighted the critical role of targeting manufacturers in achieving sustained economic stability.
“Some manufacturers and suppliers continue to restrict the volume of ZiG they accept from downstream traders, which remains a challenge. We are employing a dual approach of engagement and enforcement. Several accounts have already been frozen, and penalties imposed,” said Chiperesa.
He added that improved compliance in the manufacturing sector would create positive ripple effects throughout the supply chain, ultimately benefiting consumers.
However, manufacturers argue that the FIU’s actions resemble price controls, accusing the agency of harassing struggling businesses amid ongoing economic challenges.
A manufacturer, speaking on condition of anonymity, defended the pricing strategies, stating, “We set prices that allow us to sustain production. Pricing policies that make operations unsustainable would lead to shutdowns. There is a need for engagement to foster mutual understanding.”
Economic analysts view the enforcement of ZiG transactions and the crackdown on pricing irregularities as part of a broader effort to stabilise Zimbabwe’s economy. While the government’s measures aim to curb inflationary pressures and promote fair market practices, experts caution that balancing enforcement with industry engagement will be key to sustaining long-term economic growth.
