Gvt Ends Forex Curbs on Formal Retailers

Zim Now Writer

Government has repealed the controversial Statutory Instrument 81A of 2024, which imposed restrictive exchange rate controls on formal businesses.

The move is expected to liberalise the foreign currency market and support ongoing economic reforms.

According to Statutory Instrument 34 of 2025, gazetted by the Minister of Finance, Economic Development and Investment Promotion, the new regulation is cited as the Exchange Control (Amendment of Schedule to the Exchange Control Act) (Repeal) Notice, 2025.

“The Exchange Control (Amendment of Schedule to the Exchange Control Act) Notice, 2024, published in Statutory Instrument 81A of 2024, is hereby repealed,” the notice reads.

SI 81A of 2024 had faced backlash from businesses and investors for mandating pricing at the official exchange rate, which frequently lagged behind the parallel market rate. The discrepancy created losses and inefficiencies for firms that complied, while informal operators remained largely unaffected.

This will particularly allow compliant retailers to remain competitive against quasi-formal and informal traders whose goods had become more attractive for the consumer.

The repeal forms part of Zimbabwe’s economic reform agenda under the Structured Dialogue on Arrears Clearance and Debt Resolution, a process being pursued in collaboration with international partners. The agenda includes reforms in three core areas: economic policy, governance, and land.

With SI 81A scrapped, businesses are no longer legally bound to use the official exchange rate when pricing goods and services — a change expected to improve price transparency, boost the formal sector, and bolster investor confidence.

The policy shift comes as the country seeks debt restructuring and renewed access to international financing.