DStv gets US dollar reprieve

THE Reserve Bank of Zimbabwe (RBZ) has granted Multichoice Africa (Multichoice) an exemption to continue receiving payments in foreign currency.
Zimbabwe last month promulgated Statutory Instrument (SI) 142 of 2019, which abolished the multi-currency system and made the country’s domestic currency as sole legal tender for local transactions.
However, the central bank last week said locals are still allowed to make DStv payments in foreign currency to the South Africa domiciled pan African satellite broadcaster.
“Individuals are permitted to make cash withdrawals for external travel and to meet external subscriptions such as DStv,” the RBZ said in a presentation at the Institute of Chartered Accountants of Zimbabwe.
In an update to subscribers, Multichoice confirmed the development and urged Zimbabweans to continue making their payments through the local banks.
“DStv payments can still be made at selected banks in United States dollars as the DStv service is exempt from Statutory Instrument 142,” the company said.

In 2017, RBZ governor John Mangudya expressed shock that Zimbabweans had spent US$206,7 million on DStv subscriptions alone in the second half of 2016.
DStv and card transactions exceeded other transactions such as the importation of raw materials for the manufacture of products like cooking oil and maize imports.
In the monetary policy statement, the RBZ pointed out how this was unsustainable describing it as counter-productive and illogical.
“The bank shall quickly move to redress this market failure through measures that compel banks to adhere to the import priority list and to mitigate against institutional indiscipline such as the use of more foreign exchange for personal card and DSTV transactions ahead of raw materials to produce cooking oil, for example,” Mangudya said then.
“Financial institutions should do some soul searching and rethink on how they add value to the economy under the New Normal.”
Lately, banks have been restricting payment modalities for DStv, as most banks were no longer facilitating DStv payments as of last year.
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