Bond coins re­jec­tion garage angers mo­torists

Chronicle (Zimbabwe) - - Business - Bianca Mlilo Busi­ness Re­porter

A LO­CAL fuel ser­vice sta­tion, Glow Pe­tro­leum, has irked mo­torists in Bu­l­awayo by re­fus­ing to ac­cept bond coins as a medium of trans­ac­tion.

Bonds coins are le­gal ten­der in Zim­babwe with their value in­dexed at par with the United States cents.

The coins work along­side a bas­ket of cur­ren­cies that in­clude the South Africa rand and the Botswana pula.

Irate mo­torists who spoke to Busi­ness Chron­i­cle yes­ter­day lashed out at the own­ers of the newly es­tab­lished ser­vice sta­tion in the city.

“Do they think we will al­ways get the US$ to buy fuel from them? Isn’t bond coins are also money and can be used to trans­act any­where in the coun­try,” said Mr Bu­sani Maphosa.

An­other mo­torist Mr God­frey Chauke said: “What I would like to know is whether some com­pa­nies are ex­empted from us­ing the bond coins. If not, then why is this fill­ing sta­tion do­ing it?”

Glow Pe­tro­leum man­ag­ing di­rec­tor Mr Aaron Chin­hara said they were not ac­cept­ing bond coins for ad­min­is­tra­tive rea­sons. “These peo­ple are not sit­ting at a counter and do not have a till to put the coins in.

“Let us not talk about the le­gal­ity of the bond coins be­cause when the Re­serve Bank (of Zim­babwe) in­tro­duced them, the gov­er­nor (Dr John Man­gudya) said they were change, not le­gal ten­der. I dare any­one to take me to court over that, I will not take bond coins.”

Dr Bon­gani Ng­wenya, an econ­o­mist, said ex­cep­tion of goats.

He said live­stock drought mit­i­ga­tion projects over ac­cess to feed, cou­pled with re­ha­bil­i­ta­tion of water points have helped farm­ers.

In July, In­dus­try and Com­merce Min­is­ter Mike Bimha said the Gov­ern­ment would soon avail a $2,3 mil­lion fa­cil­ity sourced from the African De­vel­op­ment Bank to sup­port the beef and leather value chain in Mata­bele­land re­gion.

To­wards the end of last year, AfDB promised avail­ing fund­ing for the sup­port of Zim­babwe’s beef and leather value chain tech­ni­cal as­sis­tance pro­ject.

The over­all ob­jec­tive of the tech­ni­cal as­sis­tance pro­ject is meant to catal­yse the coun­try’s eco­nomic growth and con­trib­ute in ad­dress­ing Zim­babwe’s fragility through re­viv­ing the beef and leather in­dus­tries.

The pro­ject will in­clude a plat­form for stake­hold­ers aimed at en­hanc­ing di­a­logue the re­jec­tion of le­gal ten­der could have dire con­se­quences for the busi­ness en­tity.

“This busi­ness could find it­self in se­ri­ous trou­ble with au­thor­i­ties. Even if au­thor­i­ties choose not to en­force the law, the truth re­mains that bond coins are le­gal ten­der and re­ject­ing them is not jus­ti­fi­able at all.”

—@Bian­caMlilo at na­tional level, among stake­hold­ers (pub­lic and pri­vate) in the beef and leather value chain, for co­or­di­nated ac­tion.

An­other com­po­nent of the pro­ject is the busi­ness en­vi­ron­ment stream­lin­ing and re­form aimed at fa­cil­i­tat­ing sup­port for the Gov­ern­ment in its ini­tia­tive to re­view and stream­line re­forms to the ex­ist­ing beef and leather sub-sec­tor poli­cies and reg­u­la­tions tak­ing into ac­count the stake­hold­ers’ con­cerns in the value chain.

The pro­ject will also of­fer tech­ni­cal sup­port for the de­sign of a live­stock in­for­ma­tion and trace­abil­ity sys­tem as well as prepa­ra­tion of a pro­posal for dip tanks con­struc­tion and re­ha­bil­i­ta­tion, among oth­ers.

Presently, Zim­babwe’s leather in­dus­try is op­er­at­ing at a sub­dued ca­pac­ity de­spite mar­ket op­por­tu­ni­ties in mar­kets such as Sadc and the Com­mon Mar­ket for East­ern and South­ern Africa as well as abroad. —@ okazunga

Min­is­ter Pa­trick Chi­na­masa

Bond coins

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