POS machines a must for all businesses: Minister

GOVERNMENT will soon demand that all businesses have Point of Sale (POS) machines as a prerequisite to obtain operating license as part of efforts to ensure compliance with monetary regulations and promoting the use of the Zimbabwe Gold (ZWG) currency, a Cabinet Minister has said.

Speaking during a recent Zanu-PF Matabeleland South Provincial Co-ordinating Committee (PCC) meeting in Gwanda, Industry and Commerce Minister, Mangaliso Ndlovu, said the process to review legislation was already underway and businesses, including those in remote areas, must commit to operating within the confines of the law.

In the past, businesses in remote areas would use the excuse of not having network connectivity for refusing transactions in local currency. The Government is addressing the challenge of network connectivity so that no businesses have an excuse.

In urban areas, some businesses deliberately frustrate the use of local currency and where it is accepted, businesses fleece consumers by using black market exchange rates.

Members of the public have made several calls to Government to ensure that the ZWG, which came into circulation in April this year is accepted across the board.

“There are some traders who are saying they don’t accept the ZWG yet it’s the official currency, which we have in the country. The programme we will be coming up with won’t allow any business to be given an operating license without a Point of Sale (POS) machine,” said Minister Ndlovu.

“From January next year, we expect every business to have a POS machine. We will work on ensuring that rural communities get network as it will be difficult for business owners there to use POS machines without network. It’s important for our currency to be used by everyone in the country,” he added.

Minister of Industry and Commerce Nqobizitha Mangaliso Ndlovu

Minster Ndlovu said a time frame will be set to improve on network coverage. He said business owners will be expected to open bank accounts and obtain POS machines so that every citizen can be able to swipe.

He said businesses that are refusing local currency or charging black market rates are working against the Second Republic’s efforts to grow the economy and must be punished. “Let’s go out there and tell the people about the ZWG and encourage people to use it. As the party, we have an important role to play in enhancing Government policies and development strategies,” said Minister Ndlovu.

The introduction of the ZWG nearly five months ago has resulted in stability of prices and low inflation, a development attributed to measures implemented by the Reserve Bank of Zimbabwe (RBZ) and Second Republic.

Reserve Bank of Zimbabwe (RBZ)

These measures include controlling the money supply as well as building gold and foreign currency reserves.

RBZ’s Financial Intelligence Unit (FIU) and the police recently issued a stern warning saying there are no sacred cows in the countrywide crackdown on people, including political heavyweights and businesses violating the Exchange Control Act.

Recently, the FIU froze 522 bank accounts belonging to companies and individuals while 140 entities and individuals were heavily fined as part of an ongoing clampdown on those who violate exchange control regulations.

Focus is now on suspicious transactions that include use of multiple bank cards, dealing in foreign currency and inconsistent shopping behaviour.

The informal market has emerged as a hotbed for ZWG currency sabotage hence the need to closely monitor it. Some of the traders using the black market rates to discourage transacting in local currency, are in the informal sector.

RBZ Governor, Dr John Mushayavanhu is convinced that the introduction of the ZWG will bring about lasting stability in the economy and boost business operations while promoting savings in line with the recent Monetary Policy Statement.

Backed mainly by gold and other precious minerals as well as forex reserves, the ZWG is a successor to the Zimbabwe dollar, which had suffered from volatility challenges and its success is expected to anchor the de-dollarisation roadmap. —-chroncile