Non-governmental organisations (NGOs) operating in the country have been banned from giving aid to beneficiaries, most of whom are in the rural areas, in the form of foreign currency.
The move is in line with the recently gazetted Statutory Instrument 142 of 2019 which banned the use of foreign currency in domestic transactions.
The NGOs have been directed to convert the hard currency to the Zimbabwe Dollar if they intend to give out cash to locals.
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This was revealed by the Local Government, Public Works and National Housing Minister Cde July Moyo in an interview with State media. Said Moyo:
As you are aware I am the chairperson of the inter-Cabinet Committee that deals with disaster and climate change, recently we had a meeting with World Bank and United Nations representatives as well as embassies.
The Minister of Finance (and Economic Development, Professor Mthuli Ncube) was there, the Minister of Public Service (Labour and Social Welfare Dr Sekai Nzenza) was there as well as other ministries.
We discussed how best we can get help as a country. We told them that non-governmental organisations should stop giving beneficiaries US dollars or any other foreign currency.
If they so wish to give them money, they should give them local currency.
The argument was we have removed the multi-currency regime and restricted domestic transactions to local currency and most people in rural areas to which most of the aid goes will not be able to use the money.
More: Sunday News
Sekai Nzenza is the current Minister of Industry and Commerce in the Government of Zimbabwe. She is also a writer and an international development consultant specialising in NGO accountability, health, microenterprise and human rights. She was born in rural Zimbabwe and trained as a nurse... Read More About Sekai Nzenza