Gambakwe argues compellingly that the M31 Political Party’s policy to join the Rand Monetary Area (CMA) offers a practical solution to Zimbabwe’s long-standing currency and inflation challenges. This policy is grounded in a direct comparison between Zimbabwe’s turbulent monetary history and the proven stability and governance of the CMA.
Zimbabwe’s Currency Instability
Gambakwe highlights Zimbabwe’s repeated monetary failures since independence in 1980, noting that the country has cycled through multiple incarnations of its national currency—11 iterations in total—with severe consequences. These include the First through Fourth Zimbabwe Dollars, the RTGS Dollar, bond notes, and most recently the Zimbabwe Gold (ZiG) currency introduced in April 2024.
Each iteration was undermined by hyperinflation, loss of public confidence, and arbitrary government actions, especially unchecked money printing. For example, during the 2000s Zimbabwe experienced hyperinflation peaking with prices doubling approximately every day, and the government issued banknotes in denominations as high as 100 trillion Zimbabwe dollars. Efforts to revalue and redenominate the currency occurred several times, but inflation persisted with annual averages as high as 672.5% during recent decades.
The current monetary regime is marked by a lack of transparency and ad hoc policy-making, with no clear reporting on money supply, leading to further erosion of trust in the currency.
The Appeal of the Rand Monetary Area
Gambakwe positions the Rand Monetary Area as a stable, transparent, and well-managed alternative. He points out that:
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Fixed Exchange Rate:Â The currencies of CMA members such as Eswatini, Lesotho, and Namibia are pegged at a 1:1 rate to the South African Rand, providing predictability and stability.
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Independent Monetary Policy:Â The Rand is controlled by the South African Reserve Bank (SARB), an independent institution that prudently manages currency issuance and inflation. This contrasts starkly with Zimbabwe’s history of unrestricted printing and policy whimsy.
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Economic Integration:Â Joining the CMA would deepen Zimbabwe’s integration with its regional trading partners, simplifying transactions and aligning monetary policies. Presently, Zimbabwe suffers from high consumer prices and a scarcity of physical change partly due to the mixed and unstable currency regime.
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Accountability and Transparency:Â The CMA’s coordinated monetary policy is transparent, with clear mechanisms to control money supply and interest rates, which are comparable across member states. Zimbabwe’s current system lacks such accountability, contributing to instability and economic stagnation.
Gambakwe underscores that by adopting the Rand as its primary currency, Zimbabwe would enter a monetary union with Africa’s strongest and best-managed currency system, removing the possibility of arbitrary currency printing and fostering economic confidence.
Broader Vision
Beyond currency policy, Gambakwe shares M31’s ambitious plans to transform Zimbabwe into a first-world country by 2030 through bold development of infrastructure, social welfare, housing, and reforms in governance and the military. Currency stabilization through joining the Rand Monetary Area is portrayed as a foundational step enabling these broader economic and social goals.
This synthesized perspective from Gambakwe’s video and Zimbabwe’s documented currency history illustrates why the M31 policy offers a structured, transparent, and regionally integrated path forward, breaking Zimbabwe’s cycle of currency collapse and economic hardship. This pragmatic approach contrasts sharply with past failed experiments in currency sovereignty, where unchecked money printing led to hyperinflation and poverty.
If M31’s vision is realized, Zimbabwe could enjoy monetary stability, improved trade with neighbors, and ultimately economic prosperity underpinned by a credible, well-managed currency system.
