In 2021 we have compiled a short book on the history of Ponzi schemes in Zimbabwe and the book is accessible through our Forum Resources. The short book covered the first Ponzi Scheme which came in the 1990s and given names such as Money Clubs. The money clubs mushroomed especially in Harare and Bulawayo with many thronging down town offices before their collapse with substantial funds lost.
The second biggest Ponzi Scheme came around 2014/5 and crossed the borders from South Africa to Zimbabwe showing the vulnerability of the country to International Ponzi Schemes. It was called MMM and was orchestrated through local payment systems. Typical of all Ponzi Schemes which have short legs and short life spans, it crashed with an estimated US$30 million of investor funds lost.
One would think the string of Ponzi Schemes coming and burning many fingures, Zimbabweans would learn from the adage ‘Once bitten twice shy?’ Well, not in Zimbabwe where Beven Capital was to emerge 2/3 years later and running for a record 3 years before collapsing with amounts similar to MMM being lost.
Did we see the end of Ponzi Schemes with Beven Capital? Not really as 3 years after the demise of Beven, a scheme similar to MMM is in town and trending. All voices of reason being muted as Zimbos scramble to invest in the Ponzi Scheme covered by TechZim. Millions being invested by Ponzi Hunters quenching their appetite for risky investments whose end most know of. The Ponzi Scheme owners are even daring by appearing on local television and newspapers. They are also going around the country and opening offices in broad daylight.
When is the latest Ponzi Scheme going to collapse? Our estimated date is before the 2023 elections. The Ponzi Scheme likely to peak around July before collapsing around early to mid August. It cannot straddle the elections. The vexing question is why are Ponzi Schemes allowed free-play in the economy? Perhaps there is an unwritten positive impact? Or part of financial literacy practical education?
Whatever the positive spin to Ponzi Scheme could be, our advice is work hard and create real sustainable wealth. The e-creation of wealth through Ponzi Schemes is not only risky for direct investors but also to innocent investors oblivious of the chicanery behind the scheme.
