Zimbabwe Finance Minister says you cannot borrow money to pay lobola because a woman is not a tractor

The Finance Minister said he personally felt that the collapse of Zimbabwe’s economy was blessing because it was changing the way people looked at things like employment,

“Let us take for example in the agricultural sector. We were talking about 4 000 farmers. There is no way an economy can grow and expand when a vital productive asset like land is held by one or two people. So, it is important that we realise that because we moved from that ownership of land and now we have the A1 farmers. 

“We distributed that land to about 350 000 households, you can also multiply the number of people who are dependent on that piece of land.  Now, that change caused disruption in our productive system.  So, initially there was a fall of production, everyone was laughing at us.  

“However, I cannot see how we could have gone from that skilled land ownership to the current one where it is now owned by the majority of our people, without a transition.  There has to be a transition and what we are talking about here Madam President is how to manage that transition from yesterday to today and tomorrow. 

“I am happy to say that we analyse these situations and try to come up with policies that relate to the reality of our situation.  We are not doing textbook things; we are relating it to the people.  Of course, as we do so, it will take time even for the people themselves to understand that this is an opportunity for them.”

Chinamasa said he was aware that Zimbabwe’s banks were conservative but they had to lend money out otherwise they would go out of business.

“Yes, the banking institutions are conservative, but when I talk about mindsets, I am talking not only about the mindsets of us individuals but of institutions also.  The way I see it is that – and this is what we tell the banking institutions, if they do not face up to the reality of our situation, they will be out of business sooner or later,” he said. 

“This is because the business of a lending institution is to lend money.  If you are not lending, you get broke.  You make money from the interest you charge when lending to people.  If you do not lend, and as it is, they may say, we only lend to established firms but the base of established firms is reduced.  So, in the end you cannot avoid lending to people who are plying their trade in the informal sector.”

Chinamasa said, however, the government could not force banks to lend money. That was between the banks and their clients.

“Banks’ main business is to lend but they want to lend to good borrowers who will use the money for the purpose for which it is borrowed and who will be able to pay.  That is the relationship you will have between yourself and the bank,” he said. 

“We cannot say for instance, Senator Chimhini, go to Barclays; and say you must lend to Senator Chimhini, who wants to build a house or buy cattle.  If we do that it will not work. In fact, it may well end up that Senator Chimhini will end up borrowing just to go and marry other women.  Muzukuru ndakukutsvinyira manje. You do not borrow to go and pay lobola; a woman is not a tractor.”

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