Is Mthuli Ncube About To Graduate?
When Mthuli Ncube came in the cabinet as a technocrat, Twitter went crazy. A lot of people praised the President for making such a wise appointment. A lot of people were optimistic and hopeful that he would take the misfortune ridden finance ministry and the country’s economy while at it, to the promised land.
8 months later, Mthuli’s turbulent reign at the helm of the country’s finance ministry has left many people wondering if Mthuli is about to cross the river that separates technocrats and politicians. Mthuli is a technocrat, chosen for a governing office based on his technical expertise and background. Decisions made by technocrats are based on information derived from methodology rather than opinion.
These few instances have made us wonder if Mthuli has or is about to graduate from a technocrat to a politician.
1. New Zim Currency
Zimbabwe Plans to Introduce Currency ‘In Next 12 Months’: FM Ncube https://t.co/RQoQp0CvyG
— Bloomberg Africa (@BBGAfrica) April 11, 2019
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Economists have been making noise about the absurdity of this. There are many conditions that have to be satisfied for Zimbabwe to have its own currency according to economists. However, The good Professor is adamant that we will have our own currency in the next 11 months a move a politician would usually make rather than a technocrat.
2. Zimbabwe Is the Cheapest Buy-In
In his bid to market Zimbabwe, Mthuli Ncube said Zimbabwe if it had been a cheap buy its now a cheaper buy-in.
“Zimbabwe is the cheapest buy in Africa and it has just gotten cheaper…I think we are back in the game again.” – Zimbabwe Minister of Finance Mthuli Ncube https://t.co/A8pxZwPvwC pic.twitter.com/Dp0u4lxLCr
— BSurveillance (@bsurveillance) March 6, 2019
His reasons were, we have instituted monetary policy reforms, we have our own currency now, we are walking the talk, we have a budgetary surplus, etc. we will talk of everything else on another day, for today lets talk of a budget surplus, RTGS $100 Million he said. By February inflation had surged to 59.4% up from the last recorded figure of 42.2% in December. So was Mthuli’s budget surplus inflation adjusted? Once again, this was more political than technocratic.
3. The RTGS Dollar Currency
When this was introduced a day before 21st February movement, it was so confusing. I had a hard time convincing my friend who resides out of Zim that Real Time Gross settlements have become a currency in Zimbabwe. I will give him the benefit of the doubt that the RBZ is in charge of monetary policy issues and since he is dealing with politicians, his hands may be tied behind his back. But it still confuses me when he says, on Bloomberg, we have our own currency on 6 March then on 11 April he says we will have a fully fledged currency in 12 months on the same channel. This is similar to what politicians do, confuse us with conflicting theories.
4. On Prices Controls
Mthuli last week said the government would not interfere on prices meaning the government would not impose price controls. That same week, Mthuli was on record discouraging ZESA from intending to increase tariffs. While ZESA maybe a state enterprise and should conform to government gazettes, Mthuli is a Technocrat and knows that inflation has increased therefore ZESA cannot seriously function and pay for services using old rates. He himself has revised his budget upwards but still expects ZESA to delay increasing tariffs?
5. Empty Talk
Over the last 8 months, Mthuli has said a lot of things that would pass on as empty talk at the end as things remain the same or get worse with no end in sight.
- He has said inflation will fall by mid-year, now he has revised his statements to year end
- His austerity for prosperity mantra is yet to bear fruits.
- He tells us to be patient but doesn’t give us a time frame.
- No matter the angle he justifies this excessive spending from, the suffering masses will not understand it.
- His inflation meter may be very different from ours
- He blames Mugabe for the many misfortunes that mare the country
What’s your take, has Mthuli graduated? Can we call him a politician now?
