Zimbabwe’s central bank issued "bond notes", a local unit that is valued on a par with the US dollar, on Monday, in so doing effectively turning its back on the possibility of using the rand as its main unit of trade. SA is Zimbabwe’s largest trade partner in Southern Africa. Trade between the two countries was nearly R26bn in 2016. Industry bodies and local businesses have been at the forefront of urging Harare’s rulers to adopt the rand — given the strong trade ties with SA — instead of the bond notes. The Confederation of Zimbabwe Industries, the country’s largest industry association, also supported the use of the rand earlier in November. The US dollar accounts for 95% of all transactions in Zimbabwe. But it has proved too strong for Zimbabwe’s ailing economy, which desperately needs new investments. About 53% of the manufacturing sector lies idle, according to the confederation’s latest findings. The government of President Robert Mugabe has also found it increasingly difficul...
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