RBZ has been borrowing millions from a loan shark and paying US$250,000 a week

A High Court ruling delivered on April 22 has pulled back the curtain on a financial relationship the Reserve Bank of Zimbabwe would probably prefer stayed private. The central bank has been borrowing millions from a private company called Al Shams Global, run by businessman Jayesh Shah, and repaying US$250,000 every single week on a debt that exceeds US$53 million.

Let that sink in. A quarter of a million dollars, weekly, to what the court essentially described as a loan shark.

What the court found

Justice Joseph Mafusire ruled in favour of Al Shams Global in its dispute with the RBZ over a frozen account linked to gold transactions. The judgment, reported by iHarare and sourced from NewzWire and ZimLive, laid out the details bluntly.

The financial relationship between Al Shams and the RBZ goes back over two decades, to 2002. The company had been lending money to the central bank for what were described as "urgent national needs." The current repayment agreement, US$250,000 per week on a US$53 million-plus debt, dates to December 2022.

The dispute that brought all this to light started in July 2025, when the RBZ froze an account belonging to Fidelity Gold Refinery. That account held US$12.1 million that Al Shams had brought into the country for gold purchases. The RBZ demanded proof of the source of funds, despite having maintained a lending relationship with the same entity for over 20 years.

Justice Mafusire didn't hold back. He found the RBZ's decision to freeze the account was "arbitrary and irrational" and that the central bank had breached the Money Laundering Act in the process.

The gold trade question

The case also exposed how Zimbabwe's gold trade actually works, and it's worth paying attention to.

Under a 2024 agreement, Al Shams was required to buy at least 100 kilogrammes of gold every week from Fidelity Gold Refinery, export it to Dubai, and bring the proceeds back in cash. Yes, physical cash.

As Justice Mafusire noted: "Zimbabwe is about the only gold-exporting country where a central bank permits gold buyers and sellers to carry cash into the country."

The US$12.1 million in question had been declared through ZIMRA at the border. Everything was above board. The RBZ froze the account anyway.

There's also the small matter of the RBZ governor's affidavit. It was signed electronically while he was outside the country, then presented as if it had been sworn in Harare. The court dismissed it.

Why this matters for ordinary Zimbabweans

You might be wondering what any of this has to do with the ZiG in your pocket or the forex rate at the bank. Quite a lot, actually.

The RBZ is the institution responsible for managing Zimbabwe's monetary policy. It issues the ZiG. It manages the country's foreign currency reserves. And it's been borrowing from private lenders at rates that would make a loan shark blush, then freezing those same lenders' accounts when they try to conduct legitimate business.

If you're watching the exchange rate and wondering why the ZiG keeps losing ground, the central bank's credibility is part of the answer. International investors and local businesses make decisions based on whether they trust the institutions managing the currency. A court ruling that describes the RBZ's actions as "arbitrary and irrational" doesn't exactly build confidence.

For those tracking the ZiG to USD rate, the implications are straightforward. When the central bank is spending US$250,000 a week servicing private debt, that's money not going into reserves. And reserves are what back the currency.

The bigger picture

This isn't the first time the RBZ's financial dealings have raised eyebrows, but the scale here is something else. Over two decades of borrowing from a single private entity. A weekly repayment that dwarfs what most Zimbabweans earn in a lifetime. A gold trade system that relies on physical cash being carried across borders.

The court suggested this dispute should have been settled privately. Maybe. But there's an argument that the public is better off knowing how their central bank operates. You can decide for yourself.

If you're watching the historical exchange rate trends, this is one of those data points that explains the trajectory better than any chart.

About zimrate.com: We track Zimbabwe's economy, currency rates, and financial news. Visit our homepage for current ZiG rates, use the converter for calculations, or check historical data to see trends over time.

This article is for informational purposes only and does not constitute financial advice.