Why are Zimbabweans with free funds looking for Zimdollars when they need US dollars to import, Minister asks?

Hon. Chinyanganya, there is what we call effective demand and this only happens when the consumers are willing and able to pay. You may be willing and do not have the ability to pay, it is not effect demand. We go to the basic commodities this is where you said there is a problem because it is basic. It is true that we can have challenges where we are dealing with basic commodities that sometimes we do have the choice and this is why we have this intervention that we brought today. As Government we should make sure that we are on the ground and enforce S.I. 127. Are we going to have subsidies – going forward as provided for in Vision 2030, the police thrust of the Government is to move away from subsidies but in cases where there is need for social protection, we will intervene in the form of subsidies.

At the moment, we have got quite a number of safety nets that are there. If you go to the rural areas, we are having social welfare and in the urban areas we are also doing cash transfers, but to have blanket subsidies as a result of the short-term impact of S.I. 127, this is out. What we will do as Government is to ensure that we are going to enforce S.I. 127 in terms of compliance.

The last question is from Hon. Mushoriwa where he mentioned something about RBZ securing funds and after that we are going to abandon S.I. 127. One of the areas that we have consistently worked on as Government is policy consistency.  Policy consistency that is critical for the development of this country in terms of our re-engagement efforts and in terms of having investors.  So I would want to allay the Hon. Member’s fears that what he thinks is going to happen is not going to happen.  We are very clear in terms of what we are doing as monetary authorities and as Government.  So I would want to assure the Hon. Member that we are not going to abandon S.I. 127.  We will make sure that at the end of the six months, we are going to review the situation and most likely bring the two Acts for amendment here in Parliament.  I thank you.

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