ED: “We’ve A Collapsed Economy, We’ve A Collapsed Currency”

President Emmerson Mnangagwa has said that Zimbabwe was rising from its knees. He cautioned however that reviving such an economy was not an easy task.

The Herald reports that Mnangagwa was addressing the World Economic Forum meeting this week in South Africa. Mnangagwa reportedly said:

My country is in a different situation, it has a collapsed economy, none of my colleagues here have a collapsed economy, we have a collapsed currency, none of my colleagues here have a collapsed currency.

So we are building and reconstructing that collapsed economy. To do so, we have to interrogate what we need to do, what resources are at our disposal to reconstruct our economy under sanctions….

We realise that government is not in the business of doing business, so it is critically important that we have conversations with the people over there (investors), but we must create conditions in our jurisdictions where they can feel that their capital is safe. We must have the right regulatory institution.

His remarks come when the country is implementing currency reforms that have resulted in the reintroduction of the Zimbabwe dollar the country had ditched in 2008 following a record high hyperinflation.

The reforms, through Statutory Instrument 142 of 2019 resulted in the banning of all foreign currencies for all domestic transactions.

More: Insider Zim


Quick NetOne, Telecel, Africom, And Econet Airtime Recharge

If anything goes wrong, click here to enter your query.

Comments

Back to top

6 comments on “ED: “We’ve A Collapsed Economy, We’ve A Collapsed Currency”

  1. This mampara knows nothing about how to revive an economy !! The only thing he knows is what he learnt from Robert, how to plunder a country’s economic wealth and turn it into their own at the expense of the Zimbabwean people…!!!

  2. The only way to turn the economy around is through foreign investment and that won’t happen unless the following changes occur: 1/ Strengthen property rights for businesses including making it very difficult to change the constitution (almost impossible). 2/ Create economic free trade zones throughout the country whereby manufacturers can manufacture with government subsidies , manufacturing = employment 3/ Revamp the agriculture sector including selling large areas to foreign companies – this will create efficiency, durability, jobs and foreign currency. 4/. Stabilize the currency- this is a tough one since Mugabe destroyed it – but can happen if strict fiscal control is adapted. 5/ Get the sanctions dropped- requires political courage. Adapt all 5 and you have a base from which to grow.

  3. The fix is simple, but requires the will, courage and determination of the leadership…
    Reintroduce the rule of law where no one is above the law.
    Separate and clearly delineate the executive, the judiciary, the military and the police.
    Reintroduce cast iron investor security.
    Create land ownership security to allow farmers to borrow against their land for regulated agricultural investments.
    Stamp out corruption and nepotism.
    Adhere to first world standards for human rights.
    Stop blaming sanctions which are targeted on naughty individuals and not the country.
    Stop insighting racial and colonial hatred; the world’s wealth is controlled by people who are not black and nobody wants to recolonise Zimbabwe – Zimbabwe needs the investment (and charity) that the UK and USA can offer.

  4. Is it credible to expect that the authors of the glaring and admitted collapse, be the engineers who reverse the demise? Is that logical?

Write a Comment

Your email address will not be published.