Nelson Chamisa, the leader of Zimbabwe’s opposition party CCC, has expressed concern over reports that banks are no longer providing US dollar (USD) loans in the country. In a statement seen by PindulaNews, Chamisa attributes this development to the “flawed and rigged election” held on August 23, 2023.

The former ICT Minister believes that this situation will have severe consequences for industries, commerce, and the overall economy. Most loans and deposits in Zimbabwe are denominated in USD, indicating a high level of dollarization. If banks indeed stop issuing USD loans, it would isolate the economy from the financial system and lead to its decline. Chamisa said:


The recent financial development is very disturbing but it is in itself an indication of the bad politics and flawed government arising out of and from a disputed, flawed and bogus election. I hear that Banks have stopped giving $USD loans. This will have far reaching ramifications on industry, commerce and the economy at large.

As of June 2023, RBZ reports show that 94% of the loans are denominated in USD while 6% of the total loans were in ZWL. In terms of deposits, 88% of total deposits were in USD while 12% were ZWL. If the USD under the mattresses were deposited into the banking sector, share of the ZWL deposits would be undoubtedly close to 0%. This effectively means that the economy has dollarised.

In view of this, if the news circulating around which to the effect that banks have stopped issuing USD loans is correct, it simply means that the whole economy is cut off the financial system and its demise is close!

There is no scope to substitute USD with ZWL because the supply of ZWL is very thin. In addition, with interest rate of 150% per annum, it is not viable to switch to ZWL loans. If the development is true, this situation is as good as taking out oxygen from a living being.

The chaos which will ensue is unimaginable – 49% of Zimbabwean currently live under extreme poverty. The ensuing economic hardships will likely increase extreme poverty and emigration into neighboring countries. The Zimbabwean economic crisis is now a SADC domestic crisis!

The country is paying the price to rot in constitutionalism, drought of good governance and a kwashiorkor of leadership! Zimbabwe must return to majority rule, a people’s government and a restoration of fundamental freedoms, rights and democracy.

Zimbabwe needs a capable, responsible and accountable government #ForEveryone"

The CCC party is contesting the outcome of the August 23, 2023 elections, alleging irregularities observed by local and international monitors. They are demanding new elections overseen by an impartial organization like SADC, the African Union, or the United Nations, instead of the Zimbabwe Electoral Commission (ZEC), which they accuse of collaborating with ZANU PF to manipulate the results. However, the ruling ZANU PF party has rejected the idea of a re-run, transitional authority, or national unity government.