Africa-Press – Zimbabwe. Former Finance Minister Tendai Biti has warned that Zimbabwe is spiralling into collapse under the weight of failed monetary reforms, unchecked corruption, and systemic mismanagement.
In his remarks reflecting on the current state of the economy, Biti said the introduction of the Zimbabwe Gold (ZiG) currency in April 2024 marked the beginning of what he called “economic carnage,” with massive consequences for production, employment, and livelihoods. Biti said:
There is carnage in the economy. The introduction of the ZIG in April 2024 marked a significant slide towards collapse, deceleration and shrinkage. The ZiG-induced depression has seen companies close or exit and a massive devaluation of social services.The former minister, who oversaw economic stabilisation during the Government of National Unity (GNU) era from 2009 to 2013, said the retail sector is buckling under the combined pressures of exchange rate volatility, high taxation, overregulation, and a rapidly expanding informal economy that now dominates urban commerce.
Biti pointed to the worsening power supply crisis as a key driver of economic deterioration, accusing the Zimbabwe Electricity Supply Authority (ZESA) of failing to meet energy demands necessary to sustain industrial activity and protect jobs.
Beyond structural inefficiencies, Biti highlighted rampant corruption at the heart of government operations as a major drag on economic recovery. He said:
Public procurement, fuel, commodities, and Treasury disbursements have become major centres of looting. Easily, US$4 is being lost annually through blatant looting by political cartels and bandits.
Biti was particularly critical of the monetary authorities’ handling of the exchange rate and currency reforms, describing the ZiG dollar as a “myth” designed to enable state-backed extraction through manipulation and fraud.
Despite authorities’ efforts to promote the local unit, Biti noted that 80% of all transactions in Zimbabwe are still conducted in US dollars, revealing the collapse of confidence in the new currency. He said:
De-dollarisation is a failed ritual, with 80 % of all transactions done in US$. The ZIG$ is a myth, a lie, imposed to guarantee extraction through exchange manipulation and fraud.
He warned that mismanagement of exchange controls has fueled hyperinflation and wiped out the real value of public sector wages, pushing civil servants into poverty.
The human cost of the economic implosion is already visible. Biti pointed out that university lecturers have been on strike since April, citing eroded wages, and over 5,000 teachers have exited public service, unable to survive on current salaries.
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