President Mnangagwa Accuses Local Business Of Hindering Economic Stabilisation

6 months agoWed, 24 May 2023 07:25:54 GMT
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President Mnangagwa Accuses Local Business Of Hindering Economic Stabilisation

In recent remarks, President Mnangagwa expressed his disappointment with certain members of the local business community whose actions are allegedly hindering the government’s efforts to stabilize the economy.

President Mnangagwa’s comments were made in light of the recent significant price hikes experienced in Zimbabwe. These price hikes have prompted the Treasury to issue a series of measures aimed at stabilizing the foreign exchange rate and macroeconomy. 

According to Mr George Charamba, the President’s spokesman, the conduct of some local businesspeople is undermining the government’s efforts to stabilize the economy. Charamba said:

I will give you an example, during the liberation struggle and when we were going for the Lancaster House Conference, it was the time of blazing the guns “kusvika barrel ratsvuka,” to support our leadership that was in London. The real intended beneficiaries of arrears clearance and debt resolution, namely the businesspeople, are in fact busy stabbing the initiative in the back. Ask them (the businesspeople) why?

According to Charamba, businesses are destabilizing the macro economy, disconnecting point-of-sale gadgets, discouraging sales in local currency, abusing the foreign currency auction system, and channelling goods to the informal market. Despite growing foreign currency receipts, the local currency continues to depreciate.

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The President has urged businesses to support arrears clearance and debt resolution efforts, as the forward march of the Zimbabwean economy will be a lot more difficult without a resolution to these issues. The country’s total debt stands at US$17.5 billion, with arrears to multilateral development banks.

Zimbabwe’s Minister of Finance and Economic Development, Professor Mthuli Ncube, has presented a detailed roadmap for the country’s economic reconstruction, including budgetary support to clear the debt overhang. 

Zimbabwe has experienced significant economic instability in recent years, characterized by high inflation, currency devaluation, and shortages of basic commodities.

The southern African country has struggled with a severe shortage of foreign currency, leading to difficulties in importing essential goods such as fuel and medicines. The government has also faced challenges in paying its debts, including arrears to international creditors, which has limited its access to international financing. This has resulted in the country struggling with a high debt burden and a lack of resources to invest in critical infrastructure and social services. The unstable economic environment has had a significant impact on the population, with many people experiencing poverty and unemployment.

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