All Things Newz
Law \ Legal

The Mosi-Oa-Tunya – Real Estate


To print this article, all you need is to be registered or login on

South Africa has its Krugerrand, the United States has the
American Eagle, Australia has the Australian Kangaroo, Canada has
the Maple Leaf and now, Zimbabwe has joined the ranks of gold coin
production with the Mosi-Oa-Tunya. Weighing in at one troy ounce
with 22 carats purity, this gold coin is the product of a
resolution of Monetary Policy Committee of 24 June 2022. According
to the Reserve Bank of Zimbabwe Governor J. Mangudya, the purpose
of the gold coin is to tackle inflation by stabilising the exchange
rate resulting in a ripple effect, which will see the price system
go down, stabilising the economy.

Currently the cold coin can be purchased from the Reserve Bank
of Zimbabwe or its agents at the value US$1823.80 per gold coin and
can be purchased with multiple currencies. The price of the gold
coin is based on the prevailing price of gold on the international

It is not clear whether the gold coins are regulated by the
Reserve Bank Act, specifically section 43 and 44 that set out the
nature and legal tender of coins as under these sections’,
unlike the current mosi-oa-tunya the coins stipulated in these
sections have denominations and are legal tender. For the
mosi-oa-tunya to be classified as legal tender, is not feasible, as
one gold coin currently amounts to US$1823.80 or ZWL 820 071.67,
and the ordinary citizen is not walking around with that amount of
money in their pocket to carry out day to day transactions. On 18
July 20222, the Reserve Bank released guidelines for the purchase
of the gold coins under Exchange Control Directive RX 20, issued in
terms of Section 35(1) of the Exchange Control Regulations,
Statutory Instrument 109 of 1996.

The Pro’s and Con’s of the gold coin

The advantages of gold coins are that they are

  1. easily transferable as they are tradable locally and

  2. prescribed investment that can be used by institutional
    investors such as banks and insurance companies to meet regulatory

  3. can be used as security for loans and credit facilities,

  4. are a hedge against inflation as they do not lose value

The disadvantages of the gold coin are that they are

  1. Not affordable to the average Zimbabwean

  2. Not feasible as most Zimbabweans are traders who operate on a
    daily basis

  3. Not easily divisible

  4. Their primary use is limited to collection and investment, and
    most Zimbabweans are not looking to save money at the moment

  5. Purchaser intending to resell the coin can only do so within
    three months

  6. Certificates are registered under the name of the original
    purchaser and not under the current purchaser, there is the issue
    of reregistration costs and procedure

  7. There is no interest on gold coins

Given that countries have preceded Zimbabwe in gold coin
production is reassuring, it is not yet clear how gold coins will
reduce inflation as prices are still on the rise. Furthermore,
given the past history of adaptability, many Zimbabweans remain
sceptical when new monetary policies are introduced. However, one
cannot rule out that efforts are being made by government to
restabilise the economy, whether same will eventually happen
remains to be seen.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

POPULAR ARTICLES ON: Real Estate and Construction from Zimbabwe

Insurance In The Construction Industry


Insurance is a vital risk mitigation tool in construction projects. Whether insurance is taken out due to a statutory, regulatory or contractual requirement or as an additional measure of protection, parties cannot afford to go without it.


Source link

Related posts

FCC Proposes New Licensing Rules For Unmanned Aircraft Systems – Telecoms, Mobile & Cable Communications

COP 27: Top News For The Fourth Day Of Events – Environmental Law

R Kelly sentenced to 30 years in prison for sex trafficking – Crime