Zimbabwe now demands hard currency from foreigners for fuel

ZIMBABWE'S SLIDE to the reintroduction of full exchange control has taken another step with the Reserve Bank wanting to force South African and other foreign road hauliers to pay for all fuel and services in hard currency. At least 10 meetings have been held between the Reserve Bank and the Transport Operators Association to find out if the system is workable. "All foreign hauliers will have to keep a log of their purchases on what is officially known as a CD3 form," says the Transport Operators Association. "This was mandatory many years ago for domestic road transporters taking consignments out of the country. Now it is being brought back in and extended to foreign operators. "Every purchase has to be recorded on this, showing that payment is made in foreign currency," says the association. Even trucks in transit through Zimbabwe will have to comply. Predictably, the reaction of foreign transporters has been less than enthusiastic. "It's a load of rubbish," one South African trucker told FTW in Harare. "If they start this nonsense, we will avoid the country totally." Trade economists say Zimbabwe will also be breaking SADC rules on liberalisation of trade, which specify that member countries have to accept payment in their own currency within their borders. Part of the reason for the Reserve Bank wanting to bring in what is seen as an unworkable system, is the thriving black market in currency at Beit Bridge. South African truckers are paying for fuel in rand, converted at slightly less than the black market rate, and the garages are then selling on the black market at the highest rate possible. One of the many problems foreseen in making the system work is persuading garages in small towns to accept foreign currency. "It is difficult to imagine petrol stations in country areas accepting anything but local currency," said one operator, "and then being able to work out the exchange rate. All this regulation will lead to is further isolation of Zimbabwe in southern Africa."