Zimbabwean court fined Prenuel Enterprises for importing methanol without RBZ approval, warning businesses to comply strictly with exchange control regulations.
Prenuel Enterprises (Pvt) Ltd has been found guilty by the Harare Magistrates’ Court for unlawfully importing a large consignment of methanol without securing the mandatory approval from the Reserve Bank of Zimbabwe (RBZ), highlighting ongoing concerns over compliance with Zimbabwe’s exchange control regulations.
According to court proceedings, the offence occurred over a nearly three-month period between 2 January and 22 March 2025, during which the company imported methanol valued at US$423,043.48. Although the chemical product was physically cleared through customs at the port of entry by the Zimbabwe Revenue Authority (ZIMRA), subsequent investigations revealed serious regulatory breaches related to foreign currency management and payment processing.
Prosecutors established that Prenuel Enterprises had failed to register with the RBZ Exchange Control Department as a recognised importer, a requirement for any entity engaging in cross-border trade involving foreign currency. In addition, the company processed payments for the methanol imports outside Zimbabwe’s formal banking system, bypassing authorised financial institutions and contravening exchange control laws designed to safeguard the country’s financial stability.
The company was represented in court by Zvikomborero Nyakutira, aged 46, who entered a guilty plea on behalf of the firm. Following the admission of guilt, the court imposed a monetary penalty of US$3,500 or its equivalent in the local ZiG currency. The fine must be settled no later than 30 March 2026.
Magistrates further ruled that failure to comply with the payment deadline would trigger enforcement measures, including the seizure of company assets to recover the outstanding amount. The court emphasised that penalties for exchange control violations serve both punitive and deterrent purposes, particularly amid ongoing efforts by authorities to curb illicit financial flows and strengthen regulatory oversight.
In a statement released after the ruling, the National Prosecuting Authority (NPA) reiterated that adherence to exchange control regulations is not optional for businesses operating in Zimbabwe. The authority stressed that all import-related payments must be channelled through licensed banks and authorised dealers to ensure transparency, traceability, and compliance with national financial laws.
The NPA further cautioned the wider business community that customs clearance alone does not constitute full legal compliance. Importers are required to meet all regulatory obligations, including RBZ registration and proper foreign currency payment procedures, regardless of whether goods have already entered the country.
This case serves as a reminder to companies engaged in international trade that regulatory shortcuts can result in criminal convictions, financial penalties, and reputational damage. Authorities have indicated that enforcement efforts will continue, particularly in sectors involving high-value imports and foreign currency transactions, as Zimbabwe seeks to maintain tighter control over its exchange regime.
