Latest news with #ZimbabweGold


DW
4 hours ago
- Business
- DW
What's behind Zimbabwe's debt crisis gold gamble? – DW – 06/04/2025
06/04/2025 June 4, 2025 Zimbabwe's latest effort to stabilize its economy comes in the form of the Zimbabwe Gold (ZiG), a gold-backed currency introduced in April 2024 to combat hyperinflation, restore confidence and address mounting debt. However, the ZiG has rapidly lost value on the parallel market. DW's Josey Mahachi speaks with Zimbabwean Finance Minister Mthuli Ncube.


Arabian Post
21-05-2025
- Politics
- Arabian Post
University of Zimbabwe Faces Backlash Over Meagre Pay for Replacement Lecturers
The University of Zimbabwe has sparked widespread criticism by offering adjunct lecturers a paltry US$5.50 per hour to replace striking academic staff, intensifying an ongoing labour dispute that has disrupted operations at the country's premier higher education institution. Lecturers, represented by the Association of University Teachers , initiated an indefinite strike on 16 April, demanding a return to pre-2018 salary levels of US$2,250 per month for junior faculty. Currently, most earn less than US$300, supplemented by a Zimbabwe Gold component that, when converted, amounts to under US$200—an effective 87% pay cut. The university's decision to recruit adjuncts at such low rates has been met with outrage from both academic and student communities. AUT leaders argue that the move undermines the quality of education and reflects a disregard for the welfare of educators. 'We have subsidised this university for more than seven years,' said AUT spokesperson Professor Obvious Vengeyi. 'On the contrary, they have plundered it.' ADVERTISEMENT The strike has led to significant disruptions, with many classes suspended and students expressing concern over the continuity of their education. Tafadzwa Katsande, a representative from the Zimbabwe National Student Union , voiced solidarity with the lecturers, stating, 'We understand your plight better because we are your children before you are our lecturers. Even if we don't attend classes for the whole semester, let it be so.' The government's response has been mixed. Presidential Spokesperson George Charamba acknowledged the legitimacy of the lecturers' grievances, noting that President Emmerson Mnangagwa had approved a welfare proposal to address the issues. However, implementation has been delayed, leading to further frustration among the academic staff. In an attempt to quell the unrest, UZ suspended several AUT leaders, including President Phillemon Munyaradzi Chamburuka and Treasurer Obvious Vengeyi, citing charges of inciting unrest. These suspensions were later revoked following legal challenges and public outcry. Vengeyi commented on the revocation, suggesting it was a tactic to distract from the core issue of fair remuneration. The situation escalated when police arrested three lecturers during a peaceful protest at the university's main entrance. Those detained included Professor Vengeyi, Dr Desmond Ndedzu, and Group Captain Boncase Mwakorera. The arrests drew condemnation from various quarters, with critics accusing authorities of suppressing lawful demonstrations. Despite these challenges, the AUT remains steadfast in its demands. Lecturers have withdrawn not only their teaching services but also their participation in research and administrative duties. They have also ceased using personal resources, such as laptops and mobile data, for university-related work. The broader economic context in Zimbabwe, marked by hyperinflation and currency instability, has exacerbated the crisis. Many lecturers report struggling to afford basic necessities, with some unable to pay for their children's education or meet daily living expenses. The AUT has highlighted these hardships in communications with university management, emphasizing the urgent need for salary adjustments.


News24
15-05-2025
- Business
- News24
UK visa change deals blow to African care workers
• For more financial news, go to the News24 Business front page. Zimbabwean workers looking to migrate to the UK by obtaining care work are in a bind after Prime Minister Keir Starmer's administration announced plans to permanently scrap visas for that category of employees. The UK government took the decision to permanently scrap the care visa due to the 'abuse and exploitation' which has been taking place, it said in a post on its official X account on May 12. Starmer has also been under pressure to reduce migration to the UK due to the growing popularity of right-wing, anti-migrant challenger parties such as Nigel Farage's Reform UK. The permits offered Zimbabwean professionals an escape from the nation's never-ending crises. The southern African nation has one of the world's most informal economies, according to the World Bank, and experiences frequent bouts of currency volatility and high inflation. Last year, it scrapped the Zimbabwean dollar and replaced it with the ZiG, short for Zimbabwe Gold, after it crashed multiple times. The bullion-backed currency, the nation's sixth attempt at establishing a functioning unit since 2009, is also faltering. The central bank devalued it by 43% in September to close the gap between the official and parallel-market exchange rates. India, Nigeria and Zimbabwe have been the three biggest sources of care workers migrating to the UK since it began offering them such visas. UK Home Office figures show that 15 709 care-worker visas were issued to Zimbabweans and 19 449 to Nigerian nationals last year, including main applicants and their dependents. A brain drain to the UK had resulted in Zimbabwe hemorrhaging not just talent in health care but also in sectors spanning banking, accounting and information technology services, according to Memory Nguwi, the managing consultant at Industrial Psychology Consultants, a Harare-based human resources firm. 'Most of the people that were leaving their professions to join care work wanted temporary relief in terms of earnings,' Nguwi said by phone on Wednesday. The new developments in the UK 'won't necessarily close the search for greener pastures' and the brain drain will continue, with there likely to be renewed interest in moving to Australia and New Zealand, he said. Zimbabwean authorities have complained that the nurses and doctors leaving to work in the UK, created a huge gap in domestic health services. Most of the nation's hospitals are under-equipped and have no medicines. Power and water supply at the institutions are also erratic, and worker morale is low due to poor working conditions. Earlier this month, a cabinet minister urged Zimbabwe President Emmerson Mnangagwa to intervene on the dire state of the health sector.


28-04-2025
- Business
Zimbabwe's ZiG battles inflation pressures a year after launch
A year after Zimbabwe launched the Zimbabwe Gold (ZiG) currency to restore confidence and curb market distortions, signs of cautious progress are beginning to emerge. The latest figures from the Zimbabwe National Statistics Agency (ZimStat) show that the annual inflation rate increased to 85.70 percent. The recent release is the first time Zimstat has given a year-on-year local currency inflation rate since authorities launched the ZiG currency. The authorities launched the ZiG currency when the year-on-year inflation rate was 57.50 percent in April 2024. The ZiG is Zimbabwe's sixth attempt at a stable currency in less than 20 years. According to the Reserve Bank of Zimbabwe (RBZ), 'ZiG is a digital currency backed by physical gold reserves, designed to provide an alternative store of value for citizens.' The authorities expected this currency to stabilise the economy by offering a more reliable currency option, supported by the physical backing of gold. The latest figures show that monthly inflation edged up by 0,6 percent in April 2025, after a brief dip into deflation in March. However, the annual inflation rate highlights ongoing economic challenges. According to Bloomberg , since the ZiG's introduction, the authorities have struggled to convince Zimbabweans that the ZiG will succeed, and its value has slumped. The ZiG is not catching on in the informal sector, which is the engine room of Zimbabwe's economy, making up around 80% of it. Most of these small traders and businesses just prefer to stick with US dollars and South African Rands. They see those currencies as more reliable than the ZiG right now. Financial expert Jacob Chincinza believes that where people accept ZiG, it is often due to legal mandates rather than market preference. 'Government regulations have compelled certain formal-sector entities to recognize ZIG for transactions, but this has not translated into voluntary adoption. Businesses frequently impose higher prices for those using ZiG to manage exchange rate risks, further discouraging its use,' he noted. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X, and Bluesky for the latest news.


Reuters
25-04-2025
- Business
- Reuters
Zimbabwe inflation at 85.7% y/y in April in local currency terms
April 25 (Reuters) - Zimbabwe's consumer inflation was at 85.7% year on year in April in local currency terms, statistics agency data showed on Friday, one year after the Zimbabwe Gold (ZiG) currency was introduced.