Harare Cellphone Dealers In Court Over Alleged US$500,000 Hawala Foreign Currency Scheme

Two Harare cellphone dealers have appeared in court facing allegations of running an illegal US$500,000 Hawala-style foreign currency operation linked to cellphone imports from Dubai without approval from the Reserve Bank of Zimbabwe (RBZ). The accused, Blessing Chinhanga and Taurai Chivanga, appeared separately before Harare regional magistrate Jesse Kufa on charges linked to alleged exchange control violations and money laundering.

Both men were granted bail of US$500 each.

According to court submissions reported by The Herald, prosecutor Rufaro Chonzi told the court that detectives from the CID Asset Forfeiture Unit were conducting “Operation Iron Net” on 7 May 2026 when they allegedly received intelligence linking the two businessmen to unlawful foreign currency dealings. Investigators claim the pair facilitated offshore payments for clients importing mobile phones and accessories from Dubai using informal money transfer systems outside Zimbabwe’s regulated banking channels.

A Hawala system is an informal money transfer method that operates outside traditional banking systems. Instead of funds physically moving between countries through banks, a customer gives money to a broker in one country, while another broker in a different country pays the recipient an equivalent amount. The system is commonly used globally for quick international transactions. However, Zimbabwean law requires foreign currency transactions and cross-border payments to be processed through authorised financial institutions regulated by the RBZ. Authorities allege the accused bypassed these official channels.

Court papers allege that detectives first arrested Chinhanga at a shop in Zimpost Mall after investigations suggested he was facilitating illegal foreign currency payments. Police reportedly recovered US$4,000 in cash during the operation. The State alleges Chinhanga collected funds from clients intending to import mobile phones and accessories from Dubai before arranging offshore settlements through unauthorised channels. Authorities estimate the transactions linked to Chinhanga amount to approximately US$270,000.

In a related case, detectives allegedly arrested Chivanga at Century Mall over accusations of conducting similar transactions. The court heard that police allegedly recovered US$31,950 in cash as well as multiple mobile phones during the raid. Prosecutors allege Chivanga also accepted payments from clients importing cellphones and accessories before arranging offshore payments outside approved banking systems. The State claims the transactions linked to Chivanga total around US$250,000. Authorities further allege that cash and goods valued at approximately US$53,000 were recovered during the investigation.

The two accused are being represented by lawyer Owen Safuri. At the time of publication, neither suspect had entered a plea. The matters were remanded for routine court proceedings as investigations continue into the alleged illegal foreign currency and cellphone import operation. The case comes amid intensified scrutiny by Zimbabwean authorities over informal foreign currency trading networks, money laundering allegations, and unauthorised cross-border payment systems operating outside the country’s regulated banking framework.

Harare cellphone dealers