Business

Chief Justice Malaba foils ED’s plans.

The recent ruling by the supreme Court has been taken as having dealt a major blow the the president’s mantra that Zimbabwe is open for business as speculation is high that it will scare away investors.

The Supreme court ruling has set tongues wagging and most people are seething in anger. Chief justice Malaba sitting together with Justice Mavingira and Justice Mathonsi delivered a lamdamrk ruling that all debte incurred before 22 February 2019 in the US dollar currency out to be paid in Rtgs currency at the rate of 1:1. This was ruled in the appeal case of Zambezi Gas Zimbabwe P/L vs NR Barber P/L. Most people have been lashing out at the Supreme Court judges for their pronouncement. The most affected are business owners and banks who had lended some money to various clients in USD form. The ruling has been castigated as being bad for business and speculation is high that it will scare away investors for fear of losing their hard earned money to such policies.

Creditors have been left out in the cold whilst debtors are clearly on celebration mode as they can now repay loans and pay off debts at a much lower rate compared to when they borrowed the money. The multi currency system was abolished last year and this has caused untold suffering for most businesses. Most people who had been awarded judgments citing that payment of money borrowed in USD currency can now be discharged in Rtgs currency at 1:1 will have to contend with receiving their money as such.

The economic environment in the country is certainly frustrating for most. Most people who spoke to this publication expressed shock and disbelief at the ruling and said this reminded them of the Gideon Gono era where most people lost thousands of dollars following poor economic decisions.

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