Informal traders in crisis as local currency shortage cripples business

Duduzile Nyathi

Informal traders in Bulawayo are facing a crippling cash crisis as a shortage of Zig banknotes leaves them unable to accept the preferred currency of their customers.

“Informal traders do not have swiping machines and this is affecting how they trade because most people have their money in Zig currency which at most times is in bank accounts,” said Bulawayo Streetwise Informal Traders Association Director, Percy Mcijo. “This has in a way slowed down the day to day runnings of their informal businesses.”

The lack of Zig notes is forcing vendors to chase after scarce US Dollars and Rand, further hindering their ability to meet basic needs.

 “Life has become unbearable but they keep on trying,” said Mcijo. Vendors are struggling to pay bills and support their families due to the lack of circulating currency.

Mcijo fears that even if more Zig notes are released, they will quickly lose value due to black market activity. “Even if we get the bank notes out in the streets, it is likely to lose value in no time. The black market is going to erode it till its valueless,” he said.

Vendors like Tendeukai Ndlovu of Nketa 9 are experiencing firsthand the negative effects. “People are always out telling me stories that they have no hard cash,” she said. Customers are taking goods on credit and failing to pay, leading to spoilage of perishable items and a decline in business.

This news comes despite claims from the Reserve Bank of Zimbabwe (RBZ) that they have issued enough Zig currency to meet market demands. The central bank blames a breakdown in the cash distribution system for the lack of available notes.

Recently, the RBZ changed the international currency code from ZWL to ZWG.