Captains of industry have warned that more companies will collapse if the government continues disrespecting market fundamentals.
CEO Africa Roundtable board chairman Oswell Binha said markets are central in government decision-making. He said:
These guys called CEOs are in trouble. The mortality rate of industry will continue. I don’t know what the accountants are doing because we need to get the reports.
And those financials need to be clear so that they are not qualified. In this current scenario, it’s not clear where we are going.
If the government is to sort this monetary lockjaw, fiscal lockjaw, markets are central in decision-making.
To the Government, my advice is that it doesn’t matter how much pronunciation you make. It doesn’t matter how many mega deals you are signing.
At the end of the day, the success of any monetary regime and fiscal regime is on the basis of respecting market fundamentals.
It’s important to understand that when you read more of arbitrage, more of cartels, more of cross-border crime, it’s an indication of weaknesses of some of the institutions. And the government needs to respond to that.
Zimbabwe is experiencing high inflation which has resulted in rising energy prices, currency volatility, and a liquidity crunch. | Business Times