Finance Minister embarks on ambitious Economic Rescue Plan
Zimbabwean Minister of Finance, Mthuli Ncube, has revealed that he has a plan to turn the country’s ailing economy around by striking a deal with foreign debtors, issuing government bonds with a 30-year maturity life span, and privatising parastatals. Moreover, Ncube said he could accomplish this by 2020.
The plan is mainly contingent on instituting the kind of policy changes that the International Monetary Fund (IMF) would like to see so Zimbabwe can borrow from the likes of the World Bank to start paying off debt of $9 billion which has irritated international lenders for the last two decades.
But whereas Ncube is convinced it’s doable, adding that a Monetary Policy Committee will be formed within a month to ring in the necessary…
AU Charters on Democracy, Elections and Governance AND on African Free Trade Area signed
FOREIGN Affairs minister Sibusiso Moyo has said Zimbabwe is in the process of aligning its foreign policy to the African Union (AU) Agenda 2063 dubbed The Africa We Want and has since ratified AU charters to do with democracy and economic development. He appeared before the Kindness Paradza-led Parliamentary Portfolio Committee on Foreign Affairs where he revealed Zimbabwe recently ratified the AU Charter on Democracy, Elections and Governance (ACDEG) and the African Continental Free Trade Area to accelerate free trade.
ACDEG is an AU charter to promote the strengthening of good governance and democracy, good electoral systems and citizen participation in governance processes, as well as human rights. “We are still in the process of r…
Rekindling Foreign Relationships with US and UK to end two Decades of Isolation
Zimbabwe Foreign Affairs minister Sibusiso Moyo says his country is working to end its international isolation by normalising relations with the United States and British governments through planned meetings with their respective leaders.
Moyo had made the comments while appearing before the Kindness Paradza-led Parliamentary Portfolio Committee on Foreign Affairs to speak on Zimbabwe’s foreign policy, re-engagement efforts to remove the country from isolation, the Diaspora policy and foreign missions, News Day reported on Tuesday.
The foreign affairs minister explained that after two decades of being a pariah state with a high country risk for business with limited credit, Harare was implementing efforts to change its foreign poli…
Dollar and Pound banned in favour of re-introducing Zim Dollar
Foreign markets are yet to react to the news that Zimbabwe has announced the re-introduction of the Zim dollar with immediate effect.
This comes after President Emmerson Mnangagwa recently said the beleaguered country would have its own currency again by March 2020.
Earlier today though, by way of a “Statutory Instrument” (SI) directive issued by the Reserve Bank of Zimbabwe, Finance Minister Mthuli Ncube said the South African rand, US dollar, British pound and Botswana pula would no longer be allowed as legal tender in Zimbabwe.
“The Zimbabwe dollar shall, with effect from 24 June 2019, be the sole legal tender in Zimbabwe in all transactions,” according to a statement.
However, the SI announcement does not affect foreign e…
Mnangagwa explains live why he did not adopt the Rand
Zimbabwe did not adopt the rand due to onerous conditions set by the South African Reserve Bank, President Emmerson Mnangagwa said on Friday. Speaking during a live radio interview, Mnangagwa said he was part of a committee that approached the SARB, with the intention of adopting the rand as “our domestic currency of Zimbabwe”— before Zimbabwe adopted the multi-currency system.
“But when we approached the SARB, they gave us a checklist with certain conditions for us to use the rand.” “It also needed South Africa to give us money (notes) that is commiserate with our GDP,” he said adding that some of the conditions were not acceptable. He stated that the government led by Robert Mugabe then decided to use a basket of currencies without…
Load Shedding and Fuel Shortage prompted axing of Energy Minister Gumbo
Zimbabwean President Emmerson Mnangagwa has announced the appointment of Deputy Minister of Transport, Fortune Chasi, as the new minister of energy, as the country continues to face rotational power cuts and fuel shortages. Former Minister of Energy Joram Gumbo has been re-assigned to a newly created position in the president’s office.
Zimbabwe started implementing planned load shedding last Monday, given low water levels at the Kariba Dam’s hydroelectric power plant, generation constraints at local power stations and limited foreign imports. The country is also facing fuel shortages, which let to customers waiting up to 10 hours at various gas stations last week.
Gumbo had repeatedly blamed fuel shortages on the limited availabil…
Are Bread Prices in Rand the answer to Inflation?
With the introduction of the RTGS Dollar on 22 February this year, an online currency only, Zimbabwe moved on terra nova as it is the first country in the world where cash in local currency has almost been abolished. Menus in Restaurants and Prices in Supermarkets are shown in “Dollar”, but it is not the US Dollar, it is the “Real Time Gross settlement Dollar”, short “RTGS Dollar”.The RTGS Dollar can currently be multiplied by 4 in order to find its Rand equivalent.
But the introduction together with the move to “Ecocash” that can be used to pay and receive money via Smart Phone Apps goes not without criticism as the example of Zimbabwean businessman Strive Masiyiwa shoes, who wants the country to start pricing its goods in Rand ins…
Electronic Dollar Trading resumes to ease FOREX Shortage
Zimbabwe said it will allow companies and individuals to trade dollars electronically, as it looks to ease a crippling scarcity of foreign exchange that had sent the economy into meltdown. The Reserve Bank of Zimbabwe (“RBZ”) has upgraded its systems to allow for such transactions and will run testing until February 1, after which it plans to go live.
The southern African nation’s cash crisis has caused shortages of everything from fuel to bread, much of which is imported. Zimbabwe scrapped its own currency a decade ago to end hyperinflation and adopted a basket of units instead, with the dollar being the most widely used. The RBZ then printed quasi-greenbacks called bond notes and an electronic currency known as RTGS$ to fund rampa…
Protests and Shutdown of Businesses let Country bleed
Zimbabwe seems not be able to catch a break. Freshly freed from the coercive shackles of the Mugabe Era, the country was hit first by a cash crisis and now by the violent aftermath of a 150% petrol price hike, making Zimbabweans Petrol the most expensive in the world.
The newly appointed government seems inexperienced dealing with the mighty unions as well as the resulting protests and the decision to curb social media and internet-based communication was not only unlucky, it poured further oil on the burning fires within society and business world.
Currently, businesses in Zimbabwe are losing millions of dollars per day as a shutdown protest – called for by the country’s biggest labour union – continues over a the sudden hike in…
Supply Crisis hits Consumers hard
Zimbabwe is facing its worst economic crisis in a decade, with prices soaring, limits on bread purchases, and long queues for fuel. This followed Finance Minister Mthuli Ncube’s decision to introduce a tax increase on money transfers last week to try and stabilise the government’s finances. The announcement triggered a rise in basic-commodity prices, stoking fears of an inflationary spiral and leading to long queues forming at petrol stations.
Many shops, under pressure from the government, are restricting customers’ purchases to prevent hoarding. Others have gone further: Yum! Brands Inc. temporarily shut some of its KFC outlets this week, saying it couldn’t find enough dollars to pay suppliers. Last Thursday, police arrested and bea…