ZSE slumps as authorities tighten currency compliance
Zimbabwe’s stock market continued its downward trend on Tuesday, with the All Share Index falling 1,13 percent to 193.15 points, while the market capitalisation dropped by 11,23 percent to ZiG 104,8 billion.
The decline comes amid heightened regulatory enforcement by the Reserve Bank of Zimbabwe (RBZ) against businesses refusing to accept the ZiG currency, adding uncertainty to investor sentiment.
The RBZ has expanded its crackdown on businesses failing to comply with the government’s multicurrency policy, targeting companies that prioritise foreign currencies over the ZiG.
According to RBZ Governor, John Mushayavanhu, authorities will extend operations beyond Harare to enforce financial regulations across provinces.
The move is expected to impact retail and informal sectors, which have cited technological limitations as barriers to ZiG adoption.
Currency markets remained relatively stable, with the Zimbabwean ZiG trading at 26.39 per USD and 32.90 per GBP. The USD/ZAR pair slipped 0,08 percent, while the EUR/ZiG gained 0,92 percent.
Despite market volatility, Zimbabwe’s corporate sector is pushing forward with investment in energy security. Food manufacturer Innscor Africa received regulatory approval to build a one-megawatt solar power plant at its subsidiary, Colcom Foods.
The project, located in Harare’s Workington industrial area, aims to cut energy costs and reduce reliance on Zimbabwe’s unstable power grid.
Meanwhile, the country’s tobacco industry is experiencing growth, with the Tobacco Industry and Marketing Board (TIMB) reporting a 10 percent increase in registered growers compared to the previous year.
The number of registered tobacco farmers has reached 127,112, with Mashonaland Central and Mashonaland West leading in production.
As Zimbabwe grapples with regulatory uncertainty and economic pressures, investor confidence remains fragile. The crackdown on currency non-compliance may disrupt businesses in the short term, while ongoing power challenges add to operational risks.
However, increased private investment in renewable energy and the expansion of the agricultural sector provide some optimism for long-term stability.-ebsinessweekl
