Kombi Operators Dig In Their Heels, Rejecting ZiG Currency

Harare commuters faced long delays and cancellations this week as kombi operators refused to accept ZiG currency for fares. 


The kombi operators argue that the bond currency, introduced by the Reserve Bank of Zimbabwe (RBZ) in May 2020, is essentially useless for their business needs as they cannot purchase fuel with ZiG.

This situation has created a significant disruption for Harare residents who rely on kombis for affordable transportation. With many commuters already struggling financially, the rejection of ZiG has added an extra layer of hardship. 
Kombi Operators Dig In Their Heels, Rejecting ZiG Currency
Kombi Operators Dig In Their Heels, Rejecting ZiG Currency
Some commuters reported waiting for hours at bus stops only to be turned away by kombi drivers demanding payment in foreign currency, primarily US dollars and South African rand.

A Challenge of Currency

The kombi operators' position stems from a fundamental flaw in the implementation of the ZiG currency. While the RBZ intended for ZiG to be a stable and usable medium of exchange, the lack of acceptance by fuel retailers has rendered it impractical for many businesses.

"We cannot operate at a loss," explained Mr. Sibanda, a kombi operator based in Mbare. "If we accept ZiG fares, we will not have enough foreign currency to buy fuel to keep our kombis running. The government needs to find a solution that allows us to operate viably."

The Reserve Bank's Response

The RBZ has maintained that fuel retailers will eventually be required to accept ZiG currency, as they will need it to settle their tax obligations with the government. However, kombi operators remain skeptical. They point to past attempts by the government to designate specific service stations for ZiG transactions, which they say failed due to rampant fuel resale on the black market.

Commuter Frustrations Mount

The ongoing impasse between kombi operators and the government is placing a significant burden on Harare commuters. Many residents are already struggling to make ends meet due to Zimbabwe's ongoing economic challenges. The rejection of ZiG as fare payment adds an extra layer of stress and inconvenience to their daily lives.

"I depend on kombis to get to work every day," said Ms. Chigwedere, a commuter in Harare. "This situation is making it very difficult for me to afford transportation. I don't have US dollars or rand – all I have is ZiG. The government needs to take action to ensure that kombis accept local currency."

A Looming Crisis?

Unless a solution is found soon, the kombi operators' rejection of ZiG currency could lead to a full-blown transportation crisis in Harare. Commuters are already facing long delays and disruptions, and the situation is likely to worsen if more kombi operators join the boycott.

The government and the RBZ need to work together to find a way to address the kombi operators' concerns. This could involve measures such as guaranteeing fuel supplies for kombi operators who accept ZiG fares, or establishing a mechanism for them to convert ZiG earnings into foreign currency at a fair rate.

Mhepo News Zimbabwe urges the authorities to take swift action to resolve this crisis. The transportation sector is vital for the smooth functioning of Harare's economy, and the current situation is causing unnecessary hardship for thousands of commuters. 

A sustainable solution is needed to ensure that kombis accept ZiG currency and commuters have access to affordable transportation.
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