Telecoms tycoon Strive Masiyiwa has called on businesses to price their good in rands as this may ease the serious price instability in the country so far.
“Let me put the proverbial cat among the pigeons,” Masiyiwa said, writing on Facebook.
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“A loaf of bread in South Africa costs R9.50. It costs R30 in Zimbabwe. 3x!!! Eighty percent of imported goods in Zimbabwe come from South Africa. It’s not uncommon to find those same goods costing anything above three times the cost.
“The people who pay for a lot of goods are Zimbabweans living in South Africa, through their remittances. The cost structure – labour and goods – in Zimbabwe is distorted by the arbitrage of the United States dollar as a currency of settlement for rand imports.”
Masiyiwa said if every business in Zimbabwe quoted their customers for goods and services in the SA rand, “it would go some way to eliminating the dollar arbitrage.”
“This is not the same thing as joining a rand monetary area, or customs union, which is a much more complex process. This one can be done overnight, and even voluntarily.”
A similar call was previously made by former finance minister Tendai Biti who said, Zim should adopt the Rand as a currency for Zimbabwe. Strive who resides out of Zimbabwe, admits that the move “is not what you have to do to fix Zimbabwe’s economic woes,”