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Conrad Mwanawashe in Mutare
Industrialists are not agreed on what single currency Zimbabwe should adopt beyond the multi-currency regime, with some angling for the adoption of the South African rand while others simply want a local mineral-backed currency.
Zimbabwe does not have a local currency following the adoption of a multi-currency regime in 2009, which has a basket of more than five currencies although the United States dollar is the major trading currency.

Discussions on the theme “Taking Zimbabwe Industry to the Next Level” at the Confederation of Zimbabwe Industries annual congress showed that industrialists themselves do not have a position on the currency issue.

Former CZI president Dr Joseph Kanyakanye said Zimbabwe should adopt the South African rand as the only trading currency as the United States dollar is suffocating manufacturers due to its high value.

“We should adopt the rand as the only currency,” said Dr Kanyekanye.
“A six percent wage increase in US dollar terms and a six percent wage increase in rand terms are two totally different costs. This is why we are not competitive so the rand is what I am proposing,” he said.

United Refineries chief executive Mr Busisa Moyo urged for a mineral-backed currency.
“I am also for a local currency, one that is backed by a resource, gold-backed or platinum-backed,” said Mr Moyo.

Ministry of Industry and Commerce Permanent Secretary Mr Staneslous Mangoma said the currency issue is under discussion in the region.
“Two weeks ago the Minister of Finance and Economic Development (Patrick Chinamasa) and the Minister of Industry and Commerce (Mike Bimha) were in Botswana discussing some macro-economic convergence and in that debate the issue of currency was discussed. But the region has not come up with an agreement on whether to use the rand but there’s consensus that is emerging that we should not use the rand.

“A lot of countries in the region are not prepared to anchor their currencies on the rand,” said Mr Mangoma.
Nestle managing director Kumbirai Katsande said South Africa would not allow Zimbabwe to join the rand union because of lack of consistency.

“The South African Reserve Bank has said no because they don’t think we are responsible, that they can trust us or that we are disciplined. They will be asking that you are independent, you are a sovereign state and how can you be part of us when we do not know what you are going to do tomorrow. We are on our own,” said Mr Katsande.

Other manufacturers felt that adopting any currency while the “borders are still open” would still make industry uncompetitive and proposed the adoption of a new currency coupled with a trade and industrial development policy.