By Dumisani Ndlovu
President Emmerson Mnangagwa’s State of the Nation address on Wednesday left many Zimbabweans disappointed and concerned.
Despite highlighting economic strides, including increased foreign currency inflows and a stable banking sector, the President failed to address the elephant in the room – the plummeting value of the Zimbabwe Gold (ZiG) currency.
Stellah Ngonidza, a concerned citizen, expressed disappointment at President Mnangagwa’s address:
“We were expecting concrete solutions to the currency crisis, but the President didn’t even mention it. How can he claim economic progress when our money is losing value every day? It’s like he’s out of touch with reality.”
Charles Ntini, a businessman from Mbizo, Kwekwe, shared his frustrations:
“As a trader, I’m feeling the pinch of this currency chaos. Prices change daily, and it’s impossible to plan for the future. The President’s silence on this issue is deafening. We need urgent action, not just empty promises. When will our leaders understand that the ZiG’s failure affects us all?,” said Ntini.
The ZiG has lost an alarming 40% of its value since its introduction in April, sparking panic and calls for drastic measures. Initially trading at ZWG13.50 to the US dollar, it’s now trading at a dismal ZWG25-ZWG28 on the black market . This drastic decline has led to skyrocketing prices of basic commodities, with some service providers demanding payment exclusively in foreign currency to avoid losses.
Zanu PF spokesperson Christopher Mutsvangwa has publicly expressed his anxieties, urging President Mnangagwa to take urgent action. Mutsvangwa called for a Statutory Instrument to be issued, making the ZWG the sole legal tender, highlighting the disparity between the two currencies and accusing individuals of manipulating the system.
The situation has become so dire that economist Steve Hanke estimates Zimbabwe’s inflation rate has soared to 880% per year, declaring the economy is “up in flames”. With the ZiG struggling to gain confidence among consumers, many are questioning whether the currency can truly stabilize the economy.
Recently, the government was forced to devalue the Zimbabwe Gold (ZiG) currency, which had been in circulation for just five months, due to its rapid decline against major currencies. This move, reminiscent of the 2008 economic crisis, has further impacted wages and business profits.
