Zimbabwe Currency Laws, how is this going to play out on safari?

Discussion in 'News & Announcements' started by rookhawk, Oct 16, 2019.

  1. rookhawk

    rookhawk AH ENABLER AH Legend

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    https://www.google.com/amp/s/www.bl...-to-fine-users-of-foreign-currencies-k138j3uh

    With prohibition against advertising US dollar prices or accepting it as tender, coupled with the fact the local funny-money cannot by petrol or any necessities, how will this play out?

    how will operators secure clients? How will they pay for quota if they must pay in dollars (their rule) but they cannot receive dollars themselves to cover all costs of operating?

    is Zim in peril if cancelling next season’s hunts?
     

  2. Royal27

    Royal27 AH ENABLER AH Ambassador

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    This is only for domestic transactions, not international.

    For the rest they will make a plan, if need be, just like always.
     
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  3. Philip Glass

    Philip Glass AH ENABLER LIFETIME BRONZE BENEFACTOR AH Legend

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    It’s always something over there.
     

  4. Wheels

    Wheels AH ENABLER AH Ambassador

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    How does a country import anything that they need like petro, pharmaceuticals, food? They have to buy it with a currency that has perceived value. ie: USD, GBP, EUR. In Zimbabwe's case you can add the ZAR.

    How do you get hard currencies?

    The country has to sell something that has value. In Zimbabwe's case natural resources is about all that is left. (yes, animals and hunting falls in this category)


    Zimbabwe wants all the hard currency they can collect. They need it to purchase imports and they need it so the ones in power can launder money for themselves out of the country. This is why Zimbabwe doesn't allow trading in foreign currencies domestically. They are making people that generate hard currencies, like outfitters, trade in their hard currencies to purchase domestically.

    Any country that has a currency that is worthless outside of the country issuing it, will always trade for currency's with a higher value.
     

  5. rookhawk

    rookhawk AH ENABLER AH Legend

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    One outfitter on this forum had I think $15,000 held in domestic Zim bank accounts to pay for their concession fees, petrol, and for animal quota. The first time I think the banks just seized the money and converted it to Zim Bonds. The second, they took it all in US cash stating that if you don't use the money within 30 days of it being in a bank, it is seized.

    All the fees of the government, permits, game scouts, taxes, quota, concession fees, access fees....all must be done in US dollars. However, the operator is effectively prohibited from having US dollars?!

    Getting blood from a turnip.

    Last year, quota was payable in Bond so you could obtain bond and pay your bills that way. This year, its all in foreign US dollars, but the client cannot be obligated to pay all these incidentals themselves because you can't get the money over there. If you do get it to your operator over there, they may have it seized before they can settle the obligations to conduct a safari! The PH and the Operators are usually very good people, so they take money out of their savings to "honor" their debts even though its not their fault and they can't afford to give away their own savings to make good on the hunts. It's a mess I tell you. I have a lot of empathy for the PHs and operators that are perpetually being shafted under near impossible conditions to conduct business.

    The latest I hear is that Zim intends to RAISE quota fees for 2020. So amidst all the shortages, the possible famine, the water crisis, the electricity crisis, and the import bans to USA and UK, with demand significantly down and much quota unsold....they are going to raise prices.

    It's like a failing car company that can't sell $20,000 trucks. The solution would be to sell them for $200,000 instead to have a higher profit? The folks at the top do not even understand 4th-grade supply-demand or 9th grade "Laffer Curve" fundamentals. If you're poor, just charge more? Yikes.
     
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  6. CAustin

    CAustin AH ENABLER BRONZE SUPPORTER AH Ambassador

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    Uncle Robert’s cronies using their funny math again!
     

  7. 375 Ruger Fan

    375 Ruger Fan AH ENABLER GOLD SUPPORTER AH Legend

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    I've hunted Zim once and the PH/Outfitter all banked elsewhere. Problem solved.
     
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  8. WAB

    WAB AH Elite

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    As long as they are doing it legally. Otherwise u run the risk of learning about FCPA than you ever wanted to.
     

  9. PHOENIX PHIL

    PHOENIX PHIL AH ENABLER AH Ambassador

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    But sooner or later they have to have cash in hand in Zim to supply their operations. Only way to do that I can see is to convert foreign hard cash for the Monopoly money the Zim gov't is issuing.
     

  10. MMAL

    MMAL GOLD SUPPORTER AH Enthusiast

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    I’m with 375 ruger. If you lived in Zimbabwe would you keep cash in their currency? Zim will Always let currency in.
     

  11. tarbe

    tarbe AH ENABLER AH Legend

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    And still does!
     
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  12. rookhawk

    rookhawk AH ENABLER AH Legend

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    you misunderstand the process. I wire $10,000 to Zim. They go to the bank and they are allowed to take $100 out as cash. Next week, it’s converted to bond that should be 17:1, but black market value is only 25:1, yet the bonds aren’t good for buying fuel, paying for quota, settling government fees, etc.

    bottom line, you’d have to illicitly bring the cash in via hard currency, otherwise if wired you’ll never get the money out of the bank!
     

  13. flatwater bill

    flatwater bill AH Elite

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    Sadly, all indigenous African Governments have proven incapable of governing themselves........difficult to see a bright future there........this is but one facet...FWB
     
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  14. Andrew Robbins

    Andrew Robbins New Member

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    Sad times in Zim, I hope it doesn't affect operations too badly. The people of Zim have learnt to survive without the government over years of hardship and make a plan when things fall apart...
     

  15. Wheels

    Wheels AH ENABLER AH Ambassador

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    Hypothetical:

    I am an outfitter and live in Bulawayo. I sell you a $20,000 hunt. $15,000 ends up in Zimbabwe to take care of everything Zimbabwe related. $5,000 is wired to Botswana.

    Prior to your arrival, I take my monthly shopping trip to Francistown. Fill up my truck along with the four 55 gallon drums in the back and all the jerry cans with petro. Buy everything I can't get at home through monies in my bank in Francistown.


    In other words, don't worry about what is said in news articles. Your outfitter will "make a plan".
     
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  16. Hank2211

    Hank2211 AH ENABLER GOLD SUPPORTER AH Legend

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    Until this plays out, hunters should be a bit more careful than usual with deposits.

    I’ve hunted Zim many times, but I’d be a little concerned about paying a Zim outfitter a deposit if that money would be sitting in a bank account in Zimbabwe for some time. If the money is taken or converted, the outfitter may not be in a position to provide what he has promised when the time comes . . . . Obviously this is a greater problem the longer the gap between the deposit and the hunt.

    Before we only had to worry about bankruptcy or fraud. Trust the Zimbabwean government to add new risks. Not good for much, but good for that!
     
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