Two Harare cellphone dealers have appeared in court after being accused of running an alleged US$500 000 (approximately R9.2 million) Hawala-style foreign currency operation linked to cellphone imports from Dubai without approval from the Reserve Bank of Zimbabwe (RBZ).
The businessmen, identified as Blessing Chinhanga and Taurai Chivanga, appeared separately before Harare regional magistrate Mrs Jesse Kufa facing charges linked to alleged exchange control violations and money laundering. The pair were each granted bail set at US$500 (approximately R9 200).
According to The Herald, court allegations presented by prosecutor Rufaro Chonzi, detectives from the CID Asset Forfeiture Unit were conducting “Operation Iron Net” on 7 May 2026 when they allegedly received information linking the two men to illegal foreign currency dealings outside Zimbabwe’s formal banking channels.
What Is A Hawala System?
A Hawala system is an informal method of transferring money outside traditional banking systems. Instead of money physically moving through banks, funds are paid to a broker or intermediary in one country, while another broker in a different country releases the equivalent amount to the recipient.
The system is commonly used in some parts of the world for fast cross-border payments. However, authorities in Zimbabwe require foreign currency transactions and money transfers to go through authorised financial institutions and approved channels regulated by the RBZ.
In this case, prosecutors allege the accused facilitated payments for clients importing cellphones and accessories from Dubai without using approved banking systems.
Police Detail Alleged Transactions
The State alleges that detectives first arrested Chinhanga at a shop in Zimpost Mall in Harare after investigations suggested he was facilitating foreign payments using a Hawala-style system.
Court papers allege that police recovered US$4 000 (approximately R73 600) in cash during the arrest.
The State further claims that Chinhanga allegedly collected money from clients intending to import cellphones and accessories from Dubai before arranging offshore payments outside approved banking systems and without RBZ authorisation.
The alleged value linked to the transactions in Chinhanga’s matter is said to be around US$270 000 (approximately R4.96 million).
Second Suspect Also Appears In Court
In a related matter, detectives allegedly arrested Chivanga at Century Mall in Harare over accusations of conducting similar foreign currency transactions.
Court proceedings heard that police allegedly recovered US$31 950 (approximately R587 880) in cash as well as several mobile phones during the operation.
The State alleges that Chivanga also collected funds from clients seeking to import cellphones and accessories from Dubai before facilitating payments outside Zimbabwe through the same system.
Authorities told the court that the alleged transactions linked to Chivanga amounted to approximately US$250 000 (approximately R4.6 million). Police also reportedly recovered cash and goods valued at about US$53 000 (approximately R975 200).
The two accused were represented by lawyer Owen Safuri. Their matters are expected to return to court for routine remand proceedings.
At the time of publication, the accused had not yet entered pleas to the charges.
The post Harare Businessmen Arrested Over US$500 000 Hawala Forex Scheme appeared first on iHarare News.
