ZiG Fading, USD Economy – Is Mono‑Currency Possible? Solar Projects, Fuel Tax Hikes | Friday Drinks
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Episode notes
Join Tinashe, Ranga, and Rufaro as they discuss how the ZiG is fading from the economy and how over 90% of the formal sector runs on the US dollar – with the informal sector effectively at 100%. We ask: how realistic is the mono‑currency? We then turn to energy: independent power producers (IPPs), such as solar projects, rely on long‑term Power Purchase Agreements (PPAs) and government guarantees. But in a high‑sovereign‑risk environment, is banking on a government guarantee actually delusional? What that means for the future solar power projects in Zimbabwe. Finally, we examine fuel: while many governments are cutting fuel taxes to cushion consumers from global price shocks, Zimbabwe has gone the other way, increasing levies and taxes. That pressure is passed straight to the consumer. This week on Friday Drinks, we connect the dots between curre ...