RBZ, Industry And Business Set For Crisis Meeting

Captains of industry and business executives are set to meet the outgoing Reserve Bank of Zimbabwe (RBZ) governor, John Panonetsa Mangudya to discuss several issues among them the foreign currency auction system and the exchange rate, and how they are impacting the economy and price stability.

Confederation of Zimbabwe Industries (CZI) president Kurai Matsheza told Business Times that the meeting is expected to take place next week, and thereafter meet the Treasury. He said:

If all goes well, we are meeting Governor Dr Mangudya next week over the current pricing conundrum, the refinement of the Dutch foreign currency auction system and exchange rate and the continuous increase in goods prices among other issues.

We are hoping that the frank discussions will bring solutions to our current challenges.

We will continue engaging with the authorities to find long-lasting solutions.

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Matsheza also said the official rate’s 10% margin should be scrapped as it has proved detrimental to industry. He said:

The issue of 10% is affecting all companies across the country hence we shall also give a plea to Dr Mangudya over its removal.

Even if they may completely remove it, we need a solution to this quagmire as businesses continue to struggle with working capital due to exchange losses due to the widening gap between official and parallel market exchange rates.

Another business leader who spoke on the condition of anonymity told Business Times also confirmed the planned meeting. Said the business leader:

We will meet the Governor next week and we expect a long-term solution on the exchange rate and auction system to stabilise the exchange rate and prices.

Our next stop will be the  Treasury where we need a relook at taxation issues taking a toll on the businesses.

The Zimbabwe National Chamber of Commerce president Mike Kamungeremu said they expect authorities to move away from the blame game. He said:

We are always engaging with both the central bank and Treasury to find long-lasting solutions but we expect a huge change in the upcoming engagements as they are key in turning around the fortunes of the economy. We need results rather than the blame game.

The Government has previously accused businesses of profiteering. On its part, the business has raised concern over a tough operating economic environment characterised by power cuts, heavy taxation and a volatile exchange rate, among other issues.

More: Pindula News