Businesses in Matabeleland Face Transaction Woes Amidst Transaction Crisis
Business community in Matabeleland is currently grappling with significant challenges in transacting on online platforms, particularly when it comes to paying duty since the introduction of new local currency.
Amidst these challenges, the Vice President for the Matabeleland Chapter of the Zimbabwe National Chamber of Commerce (ZNCC), Mackenzie Dongo, has called for urgent action from the banking sector to address these issues.
Dongo expressed urgency, stating, “Our plea is for these issues to be addressed promptly, and a consideration to allow business transactions to take place over the weekend must be given. It would ease the burden faced by businesses and prevent potential issues, such as demurrage and artificial shortages within the supply chain.”
Introduced ZIG
Dongo’s remarks came after a meeting with the Minister of Industry and Commerce, Mangaliso Ndlovu, to discuss concerns related to the newly introduced currency, ZIG.
One of the key points raised by Dongo is the inability to make payments, even when using US dollars, to Zimra. This has caused significant disruptions to the business community, leading to a strain on the banking sector. Dongo expressed the urgency of finding a solution to rectify the situation, particularly for businesses facing difficulties in paying duty.
“We are currently experiencing challenges in carrying out corporate transactions on platforms like Zimra. Some banks have reported issues with their platforms, rendering them unable to process payments. It is crucial that these problems are corrected promptly to enable businesses to trade seamlessly,” stated Dongo.
Currency Migration
Dongo further suggested a possible solution to alleviate the strain on the banking sector and facilitate smoother transactions. He proposed migrating to the new currency ZIG over the weekend when there is typically less activity, thereby allowing businesses to conduct their operations without disruption. This approach would help prevent delays at the border and mitigate the risk of demurrage fees for goods waiting to enter the country.
“If the banking platforms can be corrected or shifted during the weekend, it would enable businesses with goods at the border to carry out transactions and avoid demurrage. This would also help maintain the integrity of the supply chain and prevent artificial shortages,” emphasised Dongo.
Swift Business Solutions
The Vice President for ZNCC Matabeleland Chapter highlighted the importance of swift action in resolving these challenges to ensure the smooth functioning of business activities. Dongo’s concerns echoed the sentiments of many business owners who have been directly affected by the current issues with transaction platforms.
In response to these concerns, Minister Ndlovu assured Dongo and the business community that the Ministry of Industry and Commerce would engage with relevant stakeholders, including the banking sector, to address the challenges urgently. The Minister emphasised the significance of maintaining a seamless and efficient trading environment to support economic growth.
Besides bank transactions issues, the business community in Bulawayo also raised concerns over the failure to purchase ZETDC tokens since Friday.
ZETDC reported that the system is down for both US and local currency transactions since the introduction of new local currency by RBZ Governor.
Business Impact
However this has affected businesses that depend on ZETDC power as they report losses and delays in production.
One unidentified industrialist said, “Shortly we will see people who are using cold rooms shutting down businesses which will automatically affect the industry because at the moment they cannot buy electricity.”
The meeting concluded with a mutual understanding that collaborative efforts between the government and the business sector were essential to overcoming these challenges and ensuring the smooth adoption of the ZIG currency.
RELATED CONTENT: Zimbabwe Introduces ZIG Currency to Boost Confidence and Stability
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