Trade Union Condemns Government’s ZIG Devaluation, Calls for Immediate Action

The recent devaluation of Zimbabwe’s Gold (ZIG) currency by 44% has sparked widespread concern across the continent. Workers, already struggling, now face further economic instability.

This move by the Reserve Bank of Zimbabwe intended to address the gap between the official and parallel market rates. However, for many Zimbabweans, it simply represents another blow to their already weakened financial positions.

The official exchange rate jumped from ZIG13.80 to ZIG25 against the US dollar. While some supported this, others—especially those earning below the Poverty Datum Line (PDL)—felt the pinch immediately.

Akhator Odigie, General Secretary of the African Regional Organisation of the International Trade Union Confederation (ITUC-Africa), voiced these concerns. Speaking on behalf of the union’s 18 million members, Odigie condemned the lack of consultation in this critical decision.

He emphasized that such decisions, affecting the livelihoods of millions, should not be made unilaterally. Workers, facing an erosion of income and purchasing power, are feeling the harsh consequences.

Beyond immediate economic hardship, Odigie warned that reduced domestic demand would harm Zimbabwe’s already fragile production sector. Factories, he said, may close, and job losses will increase if the situation continues unchecked.

The union, alarmed at the government’s failure to provide any form of social safety net, insists on a rapid response. The devaluation, they argue, should have been handled gradually. Instead, this sudden adjustment has left many reeling without any protection.

The absence of cushioning measures in the form of enhanced social safety nets, according to ITUC-Africa, only deepens the negative impact on the working class. Their purchasing power, critical for sustaining local production and demand, has diminished significantly.

Many Zimbabweans have echoed these sentiments, feeling abandoned by a government that seemingly prioritizes fiscal policies over social well-being. Without proper intervention, the country risks sliding further into economic disarray.

Odigie’s statement was clear—such policies require dialogue, not hasty, unilateral action. He urged the government to involve the Tripartite Negotiation Forum (TNF) in any future decisions of this magnitude.

As the situation unfolds, businesses are already beginning to feel the ripple effects of reduced consumer spending. The potential for further disruptions to Zimbabwe’s fragile economy is becoming more apparent with each passing day.

Calls for the policy’s urgent review grow louder as workers demand a more inclusive and sustainable approach. Without immediate action, the long-term repercussions could be devastating, both for the workforce and the broader economy.

In light of these developments, questions arise about the sustainability of Zimbabwe’s currency policies. The move to devalue, while potentially necessary in theory, has exposed serious flaws in the government’s approach to managing the country’s economic challenges.

Many experts argue that a more gradual, consultative process could have avoided the current crisis. Had the government engaged social partners and workers, the transition might have been smoother, with less impact on Zimbabwe’s most vulnerable.

It is evident that without immediate intervention, the consequences of this devaluation will reverberate across sectors. From factory closures to further currency instability, the road ahead for Zimbabwe’s economy looks increasingly uncertain.

As international pressure mounts, all eyes remain on Finance Minister Mthuli Ncube. Will the government respond to the calls for action, or will Zimbabwe’s workers continue to bear the brunt of these policy decisions?

The Zim Bulletin