Mnangagwa strikes right code with Zimbabwe business sector

President Emmerson Mnangagwa may have struck the right code by roping in the business sector to help him revive the country’s economy.

Mnangagwa held a four-hour closed door meeting with the business community and assured the sector that his government will ensure policy consistency

“Above all, we in government must speak with one voice to avoid cross messages which bring confusion and uncertainty. Inconsistent public pronouncements on economic policies create fear, anxiety and despondency amongst our people,” he said.

Mnangagwa badly needs the support of the business sector to curb the skyrocketing prices and the shortage of basic commodities and even to control the black market.

He acknowledged this when he told the business sector:  “I am aware, the financial services sector is highly sensitive and thrives on the highest levels of integrity, trust, honest and good corporate governance. These values must be upheld at all times, as they are the bedrock upon which we can be a corrupt-free nation.

“The fear to lose wealth and savings, as happened during the 2008 economic melt-down, is current but unnecessary. I greatly appreciate and understand all your concerns and anxieties. Government is working day and night to stabilise the economy.”

Mnangagwa told the business sector that the multi-currency system is here to stay and his administration will ensure that bond notes and electronic money are safe and secure.

“Whilst the country is going through difficult times mainly because of lack of foreign currency to meet the growing demand for exchange across all the sectors of the economy, I would like to assure you all that the current multicurrency system of exchange is here to stay,” he said.

“All your RTGS balances at banks and bond notes in circulation are safe and secure. Safe and secure as legal instruments.  There should be no pressure to exchange or to offload these balances as government policy has not changed to warrant such anxiety.”

Mnangagwa said the president of Afreximbank, which guaranteed the bond note, was in Harare last Thursday to offer financial support.

The Finance Ministry and Reserve Bank have been tasked with implementing a framework to rebalance the debt caused by the issuance of Treasury Bills.

“The road is long but we all have a part to play,” he said. “As a listening president, I am fully aware of the situation in the country and the difficulties many face. I have heard your fears and frustrations, but also your hopes and ideas.

“We will continue full speed ahead in this period of reforming, restructuring and rebuilding. With patience and hard work, the new Zimbabwe will succeed.”

The Old Mutual Implied Rate continued to fall and today stood at 3.9555, its lowest rate since 10 October.

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