MDC calls for scrapping of bond note in proposed alternative to revive Zimbabwe’s economy

Mr. Speaker Sir, I now touch on investment or FDI to generate more foreign currency.  You do not have to be a rocket scientist to understand that we do not print the United States dollar.  The United States dollar can only be obtained through ratcheting up our exports through diaspora remittances, through funding by international organisations and embassies, through private sector loans and so on.  So, we need to address the investment climate.  It is one thing saying we are open for business, but it is another addressing those barriers to investment and there are many, they are too many.

I have not seen an investment promotion and protection Bill tabled here since we talked about ease of doing business.  You need the law, you need the legislation to back investment reforms so that you can attract investors because if an investors googles investment law in Zimbabwe, you do not get any law that protects and promotes your investment.  So, we need to do that and we need to address the capital account to make sure that the movement of forex inside and outside the country is liberalised so that a person does not hesitate to put money in Zimbabwe.

I read one news clip which said there was an investor who complained to the President that he had invested US$500 million and his money is now in bond notes.  Those are the things that we need to address to make sure that investment is increased and we need an E-Government, E- Commerce so that an investor does not physically need to come to Zimbabwe, they can just do their paper work wherever they are and we should also look at investment facilitation.  It is very important.  We must make sure that those people who invest also bank in Zimbabwe.  So, there must be an annual report on how many investors have opened their banking accounts, because some of these investors are just externalising the money like the Chinese in particular, our friends.

Mr. Speaker, talking about foreign currency generation, we have got a problem.  I can tell you five areas where we are getting foreign currency and I will put a caveat.  We get foreign currency from tobacco, gold, platinum, coal and diamonds.  What does that say to you?  These are primary commodities.  We are exporting value and we are not benefiting anything because there is no value chain there.  That is why even though we have got the mineral wealth, we still have got what economists call a resource case because we are still rich in abundant resources but we are exporting them as raw materials.

Imagine chrome coming all the way from the Great Dyke as ore, going to Beira as ore.  Imagine platinum.  We export our platinum to South Africa for processing and in South Africa there will be five minerals that are going to come out of that platinum which we are losing.  So, there is no point.  Our export is being generated by primary commodities which are not processed and we are losing value.  Our industry is down so we do not have manufactured products to export.

I also talk about socio-economic development, Mr. Speaker Sir.  Do you know that our health sector is under severe stress.  Drugs are running out of supply and their prices are beyond the reach of many.  Pharmacies are now demanding cash or United States dollars.  They are now disowning medical aid societies.  That is how difficult the situation is and what is happening?  People are now buying counterfeit drugs from the streets because they cannot afford the conventional brands or as he says are going to n’angas or prophets.  So, we must address the health sector as a critical sector.

The other thing is to create entrepreneurship.  In our policies we have talked about indigenisation, empowerment and so on, but I think we are paying lip service to entrepreneurship.  Let us create our own black middle class – black business people who are successful who invest in the country like Strive Masiiwa.  We need more of those people who we can support, as a country, to create employment – our own black driven entrepreneurship.  So, we must have an incubation period to grow our own entrepreneurs, to create wealth for society.

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