Mangudya blames business players for economic decay

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Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya gestures as he delivers his 2018 Monetary Policy Statement in Harare, Zimbabwe February 7, 2018. REUTERS/Philimon Bulawayo/File Photo
  • “If you think that our policies are failing, what it means is that players like business are the ones that are failing,” Mangudya
  • In his recent Monetary Policy Statement, Mangudya boldly stated that de-dollarisation is a success contrast to what the economy is witnessing
  • Meanwhile, government has exempted certain sectors of the economy to charge for goods and services in foreign currency, further creating currency distortions

It is no secret that Zimbabwe’s economy is on the brink of total collapse characterised by currency failure, liquidity constraints, high inflation, fuel and energy shortages and an overhanging El Nino induced drought that has left most households in need of food assistance.

As the market digs for answers, a sense of responsibility is visibly lacking. Government on various occasions has alleged “economic saboteurs” dismissing the argument that its policies have failed to work. Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya unsurprisingly reiterated that stance.

Appearing before the Parliamentary Budget and Finance Portfolio Committee on Monday, Mangudya said, “If you think that our policies are failing, what it means is that players like business are the ones that are failing”.

He was responding to questions from Bulawayo Central MP Nicola Watson of the MDC Alliance party who asked Mangudya to explain why he continuously announces policies which were not working.

“We are importing electricity and fuel and it means that we need to ensure that we come up with strategies to turn around this economy so that at the end of the day, we produce for ourselves and export the balance. It is failure of the business community and the individuals to take care of these policies,” Mangudya said.

The economy is witnessing rapid re-dollarisation as the local currency heads towards collapse but government insist that there is no going back to dollarisation era. In his recent Monetary Policy Statement, Mangudya boldly stated that de-dollarisation is a success contrast to what the economy is witnessing.

Industry blames the government for failing to consult them in policy formulations, a strategy it says is key to promoting economic growth.

Meanwhile, government has exempted certain sectors of the economy to charge for goods and services in foreign currency, further creating currency distortions.

Mangudya said that in 2020 the Central Bank will tightly control money supply to suppress inflation and will only be putting additional money in doses to grow the economy.

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