The Benefits of the Multi-Currency System to Micro, Small and Medium Enterprises (MSMEs) in Zimbabwe

This study endeavored to identify the benefits that were brought about by the multi-currency system to micro, small and medium enterprises (MSMEs) in Zimbabwe. Zimbabwe demonetized its local currency, the Zimbabwe dollar, in February 2009 and adopted the use of multiple currencies, namely the United States dollar, the South African rand, the British pound and the Botswana pula, in order to end a harsh economic meltdown. The study selected the MSME sector because this sector is the most vulnerable in Zimbabwe. A questionnaire survey was used in this study to identify any multi-currency benefits to MSMEs. A total of 265 out of 350 respondents answered and returned the questionnaire. The results of this survey show that the biggest benefit to micro and SMEs is better value for money. This was followed by the benefit that there is no inflation. Most respondents prefer to use the United States dollar, while the British pound is the least preferred. The return of the local currency is not wanted by the MSMEs. The Zimbabwean government is therefore encouraged to keep the multiple currency system in the economy for as long as possible and to publicly inform the nation that the local currency will not be reintroduced shortly. This announcement will give the necessary confidence to the economy. MSMEs have to sharpen their managerial and entrepreneurial skills in order to maximize the benefits from the multi-currency regime.