Government recently announced a Covid-19 allowance of a non-taxable US$75 a month for the civil service. In addition, it also effected a 50% increase of the ZWL dollar salaries, to quell unrest in the civil service as the cost of living continues to rise. In this episode, I look at whether government can afford this, where this money will come from, and what this all means for the broader economy.

Zimbabwe has been here before, and this story is all too familiar. When it comes to its economy, time and again, we have seen that history doesn’t necessarily repeat itself, but it often rhymes. In 2008, over the course of just a single month, the RBZ issued a series of no less than 9 new notes. Is Zimbabwe headed again in that path?

Exactly 30 days from the date a harried Mthuli Ncube wrote to the IMF seeking financial assistance, the finance minister put out a series of tweets announcing plans to launch the VFEX to trade in foreign currency. This new stock exchange is aimed at attracting foreign investors especially for the mining sector. Will this move bring some much needed relief to Zimbabwe’s economy?

When It comes to sheer drama and policies that seemingly change on a whim, Zimbabwe’s economy never disappoints. Join me as I talk about finance minister Mthuli Ncube’s leaked IMF letter, Covid-19 stimulus package, Vic Falls Stock Exchange and much more.

Roger Boka thrived as an icon, until his bank went bust. Roger was a man of many firsts. He was the first black Zimbabwean to own a private plane, and a Rolls Royce. In 1994, Roger became the first black to be given a tobacco merchant’s license. His bank, UMB, was among the first indigenous banks to be given a license. Yet on 29 April 1998, his business empire came crashing. A massive ZW$1.2 billion scandal involving forged CSC bills led to the collapse of UMB. This episode looks at Roger Boka, the maverick, and the collapse of his bank.

This crisis is like no other. The Covid-19 pandemic has had dire effects on both public health and the Zimbabwean economy. In reaction to the virus’ spread, like many countries, Zimbabwe has implemented stay-at-home orders and closures of all “non-essential businesses.” This “Great Lockdown” fueled by the Corona virus pandemic will spark the worst global recession since the Great Depression, and stands to worsen if the outbreak can’t be contained. This episode looks at implications of the pandemic to Zimbabwe and how the economy has been faring since the onset of the lockdown. I talk about re-opening Zimbabwe’s economy, the price increase moratorium, depressed diaspora remittances, effect of low oil prices on fuel products locally, and stock market performance. I also look at Zimbabwe’s exclusion from the IMF debt repayment relief program as well as the probability of a government stimulus package to help industry during the Covid-19 crisis.

# In 2010, a high court judge ruled that ENG Capital had satisfactorily settled all its past, present and future claims. ENG Capital’s excess assets were returned, and its Director, Gilbert Muponda was de-specified. He later returned to Zimbabwe from exile in Canada in 2011. After years of being vilified and hounded, for what was seen as one of Zimbabwe’s biggest ever financial scandals, the Directors of ENG Capital still maintain their innocence. None of the directors was ever convicted for the ZW$61 billion fraud allegations they were charged with. They claim they that theirs was just an unlucky case of political victimisation. This episode tells the story of the ENG Capital scandal from the perspective of Gilbert Muponda and Nyasha Watyoka.

On 19 December 2003, within a few hours following Gideon Gono’s maiden Monetary Policy Statement as RBZ governor, ENG Capital collapsed. It had failed to pay over ZW$100 billion it owed its investors. Two of the company’s directors, Nyasha Watyoka and Gilbert Muponda were subsequently arrested for misappropriating depositor funds totaling over ZW$61 billion. The collapse of ENG Capital sent ripples in Zimbabwe’s banking sector, and sparked a huge banking crisis. Thereafter 14 banking institutions failed, all within the space of a year. This episode recounts the chain of events that led to the collapse of ENG Capital, one of the biggest ever financial scandals in Zimbabwe.

To be absolutely clear, there is a banking sector crisis unfolding in Zimbabwe, that is likely to see some banks fold. The Covid-19 outbreak has only precipitated the problems banks face. This episode breaks down the risks banks in Zimbabwe are facing.

Zimbabwe’s central bank has finally responded to Covid-19 crisis which threatens to choke the economy. In a surprising about turn, the Bank legalizes the use of the United States dollar for payment of goods and services. The RBZ admits the country’s limited access to foreign currency is adversely affecting Zimbabwe’s Balance of Payment position. It also dumps its recently adopted Managed Floating Rate System in favor of a Fixed Exchange Rate System. This podcast looks at the wider implications of the RBZ’s policy response.