Zimbabwe government getting in the way of its own economic reforms

Hustling has rather blithely been defined as the art of practicing capitalism, without the capital. This perhaps aptly describes the introduction of the interbank market by the RBZ in February of this year, when it was manifestly evident that there just is not enough foreign currency in the formal banking system to go around.

Going by the aforementioned definition of hustling, one could make an appealing case that the suits at the central bank are hustlers in a way.

And since then, press release after seemingly contradictory, press release, they have lent some weight to this notion.

It is a damning indictment that after a policy announcement by fiscal and monetary authorities, there has almost been the need for supplemental press releases ostensibly to clear up confusion gripping the market.

In fact, this may truly well be reflective of the unfortunate undercurrent of “on-the-fly” policy making, with minimal regard for consequence.

And as if to show that even the gods had their back turned against the country, Cyclone Idai ravaged parts of Manicaland and Masvingo provinces in March.

The trail of emotional, physical and financial destruction left in the wake of this tropical cyclone is something that will take a long time to recover from.

Zimbabweans have been battered and bruised, that is the long and the short of it! Inflation, foreign currency shortages, the deterioration of provision of services such as water, electricity and even critical medicines at public hospitals has all but left most of the citizenry hapless.

Perhaps more frustrating is the ineffective and formulaic responses to the challenges by government, straight out of its traditional playbook. Unceasing government rhetoric which generally casts businesses as the prime enemy has firmly set root in national discourse.

Then there is the seemingly duplicitous and dishonest communications from government, which lay to bare its flexible relationship with facts and truth. The circumstances surrounding the $10 million dollar payment to South Africa`s national power utility, Eskom being a case In point.

A lot can be said about the state or lack thereof of government`s communications strategy in general and the ministry of finance in particular. For the most part, it appears the tone-deaf communications coming from the treasury are directed at the international community – the IMF, World Bank etc – and not the locals, who are carrying the pain of stagnant incomes and higher tax burdens under its austerity program.

For all the brouhaha over the country’s “budget surplus” for instance, the local man on the street still struggles to access medicines at local hospitals, obtain a passport from the registrar’s department, neither is there sufficient supplies of electricity and water. All this makes the ramblings over the surplus seem out of touch with reality, and even a touch insensitive.

Beverage manufacturer, Delta Corporation has long been considered the bellwether of the state of the economy. Its latest quarterly update showing an overall deterioration across its major business segments, perhaps is the most pointed indication of how comatose the Zimbabwean economy is.

Another major company, Econet Zimbabwe, has released a decidedly blunt and brutal press release bemoaning the expense involved with running back-up generators for protracted periods of time, in the absence of electricity.

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