A Zimbabwean man, who was owed a salary arrear of USD $5,156.95 by the Chitungwiza Council in 2015, has effectively lost nearly the entire amount due to Zimbabwe’s currency devaluation policies. According to official correspondence from the Chitungwiza Municipality’s Finance Director, the worker’s arrears were converted through a series of currency adjustments, resulting in a final payment of just ZIG 2.06—equivalent to approximately USD $0.0412 at the current exchange rate.
The drastic reduction in the man’s owed amount stems from a 2019 policy decision by President Emmerson Mnangagwa’s administration to peg the Zimbabwean RTGS dollar at a 1-to-1 exchange rate with the US dollar. This effectively converted the man’s original USD debt to Z$5,156.95, a rate that was later further devalued when Zimbabwe transitioned to a new currency, the ZIG. By April 2024, the amount was reduced to ZIG 2.06, leaving the worker with a fraction of his original entitlement.
Prominent Zimbabwean journalist Hopewell Chin’ono criticized the government’s handling of the situation, calling it a “straightforward theft” orchestrated by Mnangagwa and his ZANU-PF elites. Chin’ono argued that such currency manipulations serve only to impoverish Zimbabwean citizens, while government insiders benefit. “This is why Zimbabwe has been labeled the most corrupt country in Africa,” he remarked, warning of the consequences for any citizen or business relying on fair compensation under the current administration.
This case highlights the extreme vulnerability of Zimbabwean citizens amid constant policy shifts, which many argue lack transparency and accountability. The story also underscores the broader economic crisis in Zimbabwe, where rampant inflation and arbitrary currency changes continue to erode the savings and incomes of ordinary people.
