The Government of Zimbabwe is preparing to adjust civil servants’ wages in response to a significant 42.55 percent increase in the Zimbabwe Gold (ZiG) exchange rate against the US dollar, as announced by Finance Minister Professor Mthuli Ncube. This decision follows recent measures implemented by the Reserve Bank of Zimbabwe (RBZ) aimed at stabilizing the economy.
During a discussion on the sidelines of President Mnangagwa’s State of the Nation Address, Prof Ncube confirmed that negotiations are already underway within the Tripartite Negotiating Forum (TNF), which includes representatives from the government, labor, and business sectors. “Yes, we have to. We are looking into it and negotiating through the Tripartite Negotiating Forum to adjust the wages of civil servants. Hopefully, we will reach an agreement soon and assist the civil servants,” he stated.
The minister assured that wage adjustments would be made before the end of the year, aiming to restore the purchasing power of civil servants affected by inflation and fluctuating exchange rates. Prof Ncube acknowledged that the currency adjustments impact wages across both public and private sectors, emphasizing the government’s commitment to ensuring wage increases to protect workers’ livelihoods amidst rising costs.”Wages need to be adjusted in both sectors to enhance buying power. Currency adjustments bring negative impacts, but they also present positive opportunities for businesses. We are determined to save jobs in our formal economy,” he added.
In response to the resurgence of the black market for foreign exchange, Prof Ncube mentioned that corrective measures are being planned, aligning with President Mnangagwa’s recent directives. However, he refrained from detailing specific strategies, indicating that revealing too much could compromise the government’s approach. “We are exploring additional measures to tackle the parallel market. I cannot disclose what these will entail, nor the timeline for implementation,” he said.
Regarding the backing of the ZiG currency, Prof Ncube confirmed that Zimbabwe’s reserves are supported by gold, although the exchange rate is not directly tied to its value. He explained that the central bank has been actively selling gold to meet the demand for US dollars required for imports. “Our reserves are approximately US$370 million. The central bank has intervened by selling gold to supply the market with necessary US dollars for importation,” he noted.
Prof Ncube assured that Zimbabwe’s reserves are adequate to back the currency in circulation, emphasizing that while the exchange rate and gold reserves are distinct, they are both essential for the country’s monetary stability. As negotiations progress, civil servants and workers in both public and private sectors can anticipate wage adjustments that reflect the current economic climate.
In other news – Holy Ten criticizes attention-seeking Chivayo following car donation to Daisy Mtukudzi
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These allegations have shifted public sentiment against Daisy, who inherited Mtukudzi’s estate upon his passing. On Tuesday, Wicknell announced his gift of a Toyota Fortuner 2.4D to Daisy, claiming it was a recognition of her late husband’s significant contributions to Zimbabwe’s music scene. Read More
