Some citizens have criticised the Zimbabwean government’s move to tighten shop licensing requirements to boost the use of plastic money, arguing that it is counterproductive and fails to address the core causes of the country’s ailing economy.
Under the new regulations, business operators will be required to open a bank account and have a point-of-sale (PoS) machine as part of their licensing requirements. This comes in response to reports that some supermarkets and food outlets were using parallel market exchange rates when transacting in the newly introduced Zimbabwe Gold (ZiG) currency.
The new shop licensing requirements have sparked debate among citizens and business owners, who argue that without the necessary infrastructure and economic stability, the move will do little to improve the situation.
Citizens noted that as the government pushes for greater adoption of the ZiG currency and electronic money, it faces significant challenges in gaining the trust and confidence of the population.
These concerns were voiced during a discussion on CITE’s online X space on Thursday, where participants expressed scepticism, noting that similar measures had been announced before but had failed.
“We are repeating the same initiative, not for a good cause but as a conduit for those who can continue looting because they can beat the system,” said a participant named Sinyoro.
Sinyoro expressed his frustration with the new measures, warning that they should not be taken lightly in an “ailing and struggling economy that is dominated by the informal sector.”
He argued that instead of instilling confidence in people who “keep money under the mattress,” the government continues to harm those who practice business ethically and transparently.
“That is very disturbing,” he said.
Sinyoro emphasized the need for the government to focus on empowering its citizens rather than imposing strict regulations that punish those conducting business openly.
“Zimbabwe should be open for business for Zimbabweans before allowing looters to loot and walk scot-free. The government is playing games; this is not the first time they have made such announcements to restore confidence. It’s just fidgeting,” he added.
While acknowledging the global trend toward plastic money, Sinyoro argued that its implementation in Zimbabwe lacks value.
“Arguably, plastic money is a global approach, but in Zimbabwe, it is not adding value. We are not moving forward as an economy. The policy is good, but the application is bad; it hurts Small to Medium Enterprises (SMEs),” he noted.
Another participant, Edward Njabulo, highlighted the challenges posed by inadequate infrastructure in the implementation of plastic money.
“The challenge with the Zimbabwean system is that we are always putting the cart before the donkey. This has been the government’s way of doing business,” Njabulo said.
Njabulo pointed out that many areas, such as Lupane and Gwanda, lack the necessary network infrastructure to support electronic transactions.
“In some places, you have to climb a mountain to get a cell phone signal. If we start implementing electronic money, have we addressed the environment to support that kind of business?” he questioned.
Njabulo contrasted Zimbabwe’s situation with that of South Africa, where the environment naturally encourages the use of electronic money.
“In South Africa, the environment forces you to use paperless transactions, from taxis to the last thing you buy. You buy and order online, and apps are linked to your bank account,” Njabulo explained.
“The environment in South Africa has been created effortlessly, but here the government has passed a law to say ‘use paperless money’ when people have slowly migrated. I don’t know who advises these people, but the government must understand the pull factors that drive the economy.”
Njabulo also questioned the readiness of Zimbabwe’s banking systems to facilitate a transition to electronic money, noting that many banks may not have the capacity to support such a shift.
Both Sinyoro and Njabulo urged the government to adopt more realistic policies that consider the current economic situation and infrastructure limitations.
“The government has to be realistic about the current situation; it can’t force people to comply,” Njabulo stated.
