By Own Correspondent

THE African Regional Organisation of the International Trade Union Confederation (ITUC-Africa), has petitioned Finance Minister, Mthuli Ncube over the negative impact of the policy directive to devalue the Zimbabwe Gold (ZWG) or ZiG currency.

This follows the Reserve Bank of Zimbabwe’s decision to devalue the local unit by 44% late last month in a bid to close the wide gap between the official and parallel market exchange rates. Resultantly, the official rate moved from ZWG13,80 to ZWG25 against the greenback.

While some sections of society hailed the policy measure as realistic, the country’s majority earning far below the Poverty Datum Line (PDL) have criticized the stance, describing it as yet another blow which devalued their earnings overnight and exposed them to higher costs.

In a recent statement to Ncube, ITUC-Africa general secretary, Akhator Odigie, on behalf of the organ’s 18 million members across the continent, criticized the manner in which the decision to devalue the currency was made.

“The absence of a consultative process in implementing such a drastic policy disregards the constitutional obligation to engage citizens and social partners in decisions that directly impact their livelihoods.

“This unilateral fiscal adjustment has left Zimbabwean workers grappling with an immediate erosion of income and purchasing power, exacerbating an already fragile economy marked by high inflation and instability,” he said.

Odigie said the devaluation has sharply reduced the capacity and propensity to consume, which will harm domestic demand, disrupts production, and ultimately leads to further factory closures and job losses.

He said the ITUC-Africa is alarmed that, to date, there has been no fiscal or social safety net to cushion the adverse socioeconomic effects of this policy in a move, which deepens the negative impact and threatens to further destabilize the economy.

“We are even surprised, that the government did not use a gradual currency adjustment approach rather than this drastic devaluation method.

“We urge the government to take immediate steps to design and implement cushioning measures (enhanced social safety nets) that protect the most vulnerable segments of society.

“We call on the government to resolve such critical socio-economic issues through the Tripartite Negotiation Forum (TNF),” the continental organ said.

Odigie added that the current approach risks deepening economic dislocation and called for an urgent review of the policy to ensure a more inclusive and sustainable path forward for Zimbabwe’s workers and economy.