Tuesday 23 October 2018
Morgan Tsvangirai House
1.1 I have taken time to assess the environment in the country to have a first-hand account of the economic, political and humanitarian situation. Indeed, this beautiful country has been sent into a freefall by the predatory policies of this illegitimate government.
- a) THE ECONOMY
1.2 We have high and worsening levels of unemployment, deepening poverty and excruciating inequality. The country is also experiencing a confidence crisis defined as a binding liquidity crisis.
1.3 The confidence crisis is a manifestation of structural deficiencies and distortions. There is massive deindustrialisation, rising informality, high public debt, declining export performance, dwindling capital inflows, illicit financial outflows, poor infrastructure, corruption, institutional weaknesses, weak confidence in the formal economic system, a volatile political environment among others.
1.4 Our core problem is fiscal indiscipline in government and hyperinflationary tendencies in the economy. Runaway government expenditure which is driving a budget deficit which in turn induces a excessive borrowing and debt outside parliament and the law.
1.5 Of course, we have always known that this illegitimate government is clueless but we never expected it to be so irresponsible as to unceremoniously run down the country into the abyss of decay in just a few weeks.
1.6 I have been in fuel queues. I have been to hospitals and clinics to assess the situation. I have visited cholera victims, even attending some of the funerals and understood their cries and pain. I fully understand your pain and suffering you are going through.
1.7 It is clear those hyper-inflationary days are back and have been triggered by fiscal indiscipline which has further eroded confidence and trust.
1.8 I have been with most of you Zimbabweans in the long-winding queues for fuel – which, by the way, wastes valuable time and derail economic productivity. Shops are closing down and those that have remained open have empty shelves.
1.9 Our people have been addressed with the indignity of physically fighting for a bottle of cooking oil. Prices for basic commodities are going up exponentially. Our hard-earned money remains inaccessible at the banks. Businesses continue to struggle with most shutting down because of the predatory economic environment. Investors remain sceptical about the new but old dispensation and have withheld investment.
Continued next page