Harare – The Zimbabwean government’s ongoing crackdown on the illegal foreign currency trade has resulted in the conviction and imprisonment of a black market dealer. Kudakwashe Welcome Maketo, a 24-year-old resident of New Tafara, Harare, was sentenced to six months in prison for illegally trading in foreign currency.
Maketo’s arrest and conviction highlight the intensified efforts by the Zimbabwe Republic Police (ZRP) and the Reserve Bank of Zimbabwe’s (RBZ) Financial Intelligence Unit (FIU) to curb the rampant black market activities that have plagued the country’s financial system.
The court heard that on August 1st, 2024, Maketo was spotted at Kamunhu shopping centre in Mabvuku offering to exchange foreign currency for local currency. Police officers, posing as potential customers, approached Maketo and agreed to exchange money with him.
Maketo offered them an exchange rate of US$1 to ZiG16, a rate significantly higher than the official rate set by the RBZ (1:13.5). The officers transferred a total of ZiG320 from their mobile wallet into Maketo’s wallet, and he was subsequently arrested when he received the US$20 “trap money.”
During the arrest, Maketo was found in possession of five bank cards, further raising suspicions about his involvement in illegal financial activities.
The Zimbabwean government has been grappling with the issue of illegal foreign currency trading for years. The black market has thrived due to the country’s economic challenges, including high inflation and a shortage of foreign currency.
The government has implemented various measures to curb the illegal trade, including increasing penalties for offenders and introducing stricter regulations on foreign currency transactions. However, the black market persists, driven by the high demand for US dollars and the lucrative profits to be made from illegal exchange rates.
“This is an ongoing joint operation being conducted by police and the RBZ’s Financial Intelligence Unit,” confirmed Commissioner Paul Nyathi, the national police spokesperson. “People should engage in lawful transactions, and we are targeting those who are illegally trading in foreign currency and businesspeople transacting using exchange rates which are above the official rate.”
The crackdown extends beyond the traditional street-corner money changers. Authorities are also targeting supermarkets, pharmacies, and small businesses suspected of engaging in illicit currency transactions, often using exorbitant rates.
“We also have some supermarkets, pharmacies and small businesses which are also using exorbitant rates when transacting,” Commissioner Nyathi stated. “Certainly, action will be taken against all those involved in such activities or anyone using social media to illegally trade in foreign currency.”
The police have urged the public to be vigilant and report any suspicious activity to the National Complaints Desk, either by calling (0242) 703631 or via WhatsApp on 0712 800 197.
