Zimbabwe President Emmerson Mnangagwa hinted at further policy measures aimed at addressing cash shortages and financial distortions. File Photo: IOL

 

Mnangagwa said in his State of the Nation Address the country would set up an alternative stock market for small enterprise companies and allow companies to independently import fuel.

He said he was aware of the challenges faced by the nation.

“The government is fully aware of the challenges faced by the public in accessing cash, which has resulted in some unscrupulous traders selling cash in exchange for electronic money,” Mnangagwa said.

The address also came a week after authorities froze bank accounts of companies alleged to have been involved in black market foreign exchange dealings.

Mnangagwa said: “Appropriate measures are being taken to address the cash situation, which include a gradual removal of arbitrage opportunities” created through multi-tier pricing. 

“We are determined to consolidate digital financial services which are contributing to the creation of financial inclusion by way of delivering banking services to previously unbanked and vulnerable groups of our population.”

Apart from contending with the financial sector disarray, Zimbabwe is working on a stock exchange for small to medium enterprises, with the Zimbabwean leader saying “measures will be put in place to establish an SME stock exchange with a view to unlock resources”.

The Zimbabwe Stock Exchange has become a haven for investors pursuing exit strategies from other portfolios, especially as challenges in remitting dividends and other capital gains out of the country remains difficult.