Categories: Stories

NERP has all necessary ingredients but…

The national Economic Recovery Programme (NERP) has elements of market friendly measures that could usher a new economic dispensation but it needs bold implementation with the necessary adjustments and speed to match the severity of the problems that are threatening the stability of the country’s economy.

Intermarket Discount House says in its half year report for the six months to June that the economy has shrunk by 30 percent over the past four years and is now dogged by hyperinflation, strained capacity utilisation, fuel and coal shortages.

Shortages of commodities, it says, have created fertile ground for the black market for virtually anything tradable, including local currency. The discount house says the financial sector was also facing trying times and confidence in the banking sector was on test.

Discount receivable increased from $773.1 million last year to $2.1 billion with interest income increasing from $101.8 million to $655.5 million.

Net interest income almost trebled from $321.6 million to $899.6 million.

Trading and dealing profit rose from $142.9 million to $297.3 million, with operating profit more than doubling from $296.6 million to $786.3 million.

Net profit shot up from $190.1 million to $504 million, beating last year’s net profit of $303.5 million

(20 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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