The foreign diplomat received higher forex allocations than
a large-scale mining company over a period of one year, The NewsHawks has
established.
According to the latest list of 1 423 beneficiaries of the
US$1.2 billion allotted under the main foreign exchange auction between June
2020 and 31 May 2021 which was published by the RBZ, the DRC ambassador — who
doubles as the dean of African diplomats and is known for rallying counterparts
in the diplomatic service to project Zimbabwe in good light especially during
chaotic events like elections — accessed US$120 000 from the main auction
system.
To put it into context, at position 992 on the main auction
allocation list, Mwanananga, who has no known business interests in Zimbabwe,
accessed the same amount of forex as the City of Gweru, one of Zimbabwe’s
largest urban centres which is currently being dogged by run down
infrastructure and water shortages, among other challenges.
The Congolese diplomat also accessed more cash than local
diamond miner Murowa Diamonds which requires forex for its throughput. Mining
is one of the most capital intensive sectors in the country.
Murowa received US$100 000 which represented 0.01% of the
total allocations for large entities. Other notable beneficiaries which
received less funds from the apex bank compared to the DRC ambassador include
Hwange Colliery, Art Corporation, the
City of Masvingo, Zimbabwe School Examinations Council and Bindura University
of Science Technology.
At US$19 million, agro industrial concern Blue Ribbon Foods
received the lion’s share of the allocations. The central bank, which may soon
crack the whip on individuals and entities abusing forex accessed from the
formal system, said funds accessed from the system would be used for raw
materials, machinery and equipment, retail and distribution, among other
critical needs.
Efforts to contact Mwana Nanga on his mobile phone were in
vain. A text message sent to the DRC ambassador was not responded to.
Desperate to tame the runaway parallel market and stabilise
prices, the central bank introduced the Dutch auction system a few years ago
which critics said was heavily managed by the apex bank and benefited only a
few individuals and companies.
At inception, the system benefited large corporates before
a second-tier system was introduced for the small to medium enterprises (SMEs).
The central bank statement further shows that 2 027
beneficiaries comprising known, little known as well as prominent personalities
were allotted US$102 million under the SME foreign exchange auction during the
same period under review.
A few months ago, a local research unit expressed concern
over the allocation list which was published by the RBZ at the start of the
year.
“On the qualitative side, it would have been more helpful
if the central bank had also provided critical information on whether or not
the top beneficiaries are exporting, how their capacity has improved, among
other key variables that may aid in understanding whether or not the forex is
being put to good use,” Econometer Global Capital said in a research note. NewsHawks
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