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Archive for the category “Economic Measures”

Opinion: We are living in the era of ghosts!

There are no short supplies in ghosts, they been roaming this earth with us earthlings for so long. But in the recent times, they are becoming more ever presence. They are turning up on front-pages, having more rumours about them than the Kardashians and they are eating more then the living.

These ghosts are in every part of lives, every part of government and can suddenly empty all sorts of state reserves. This being tenders for passport paper, for registration of siblings and even death certificates, you got to pay-off some ghosts. That is just the way things are.

These ghosts are hooking themselves up with tenders for constructions of government subsidized infrastructure projects, they are getting tenders for service agreements for any ministry or department. The money for these ghosts ends up in the Cabinet Secretaries hands or in Honourable man leading the show. However, the public will never touch these funds or see the project. They were just something beautiful on paper and promising for the place it would be built. But, that was just a hoax and mirage spread to the public.

They are ever growing these things and sometimes they even get hooked-up with funds from international and bilateral organizations to fill in the gap of funding. This being done in the pretext of supposed needed basic government functions or adjustment of public investment. This being ghost schoolbooks, ghost medicine and ghost vaccines. There are nothing that suddenly will never appear. If this being procurement papers, lack of tenders or even the existence of the companies selling the products. It will all vanish in front of our eyes. Like they never appeared in the first place.

The government might even order ghost cars, ghost roads, ghost railroads, ghost schools, ghost hospitals, ghost seedlings and ghost salaries. There are nothing that cannot be ghosted, even the most life-saving parts of government work. That supposed to save life and secure the citizens can be used as a trick to steal funds. This is just the order of the day.

There are stories from everywhere, it is not even shocking. I am just awaiting ghost toilet-paper, ghost water and ghost liquor to hit the front-pages, because they have forge some other document and ensure they are eating on others people’s dime. That is just the way things are, we are seeing it and millions, upon millions are eating every day. They smile, they grin, they campaign and kiss babies, but when they are in office; they will figure out a way to eat off our plate. That is just the way it is.

It isn’t perfect. It is just a life of ghosting, embezzling, white-collar crime and grand corruption, which we are bit to used too. It isn’t funny, this isn’t Caspar the Friendly Ghost. Neither Ghostbusters 1 or 2 or 3. No, its just our civil servants combined with elected officials taking us for ride. Peace.

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Zimbabwe: Terrifying high inflation rate!

Prof. Mthuli Ncube needs to really show the new dispensation and prove that the RTGS Dollar and Bond-Notes put together into the Zimbabwe Dollar really will save the economy. Because, the state is clearly failing on putting trust in the economy. The financial markets clearly has lack of trust or not feeling it. The Zimbabwe African National Union – Patriotic Front (ZANU-PF), the second republic has to prove now, that they can fix what the Mugabe regime couldn’t fix in 2008.

Now, the Ministry of Finance, the Professor and Minister has to prove himself. That he can fix this, before the hyper-inflation hits the fan. Since, there is an giant issue. The inflation is already getting out of hand.

On the 15th April 2019, the inflation rate was at 66,8%. By the 15th May 2019 it had already become 75,86%, it continued to spiral and by 17th June it was at 97,85%. That all seems bad enough, as the progression and estimates has been broken every month. Now today on the 15th July 2019, it has hit 175,66%. That means since April the rate has nearly tripled and is now at the level of triple digit.

The prices must really skyrocket, the salaries will not be able to follow these sort of numbers. The state cannot manage to finance the state nor get the civil servants paid enough. Now we can anticipate the fuel, gas and electricity prices to go up. It got too, because, the economy is crashing. When the inflation get to this, you know something is up. The state is now getting the inflation at a ten-year high. They are surely trying to get back into the 2008 mojo.

Mthuli Ncube really have to start doing some miracles, some sort of divine god-like acts that turns water into wine. He needs to dig deep into the shelters of misbelief and find redemption. Because right now, the bridges are burning and the state needs.

Just to tell how bad it is, the estimates in the coming months is already at 200% in August and by mid-September to get to 251%. If these are true, than we know the drill. The lack of foreign exchange, prices out of control and state reserves emptied. The need for IMF, World Bank and Chinese Exim Bank to save the day. To stabilize the economy and revamp the economy.

The ZANU-PF clearly doesn’t know how to build trust or fix this. Since, they are doing the same thing all over and they have not launched the new currency yet. This shows how dire and destroyed the economy is. Peace.

Ethiopia: Completion of Preparation of Reform Process of Ethio Telecom and Sugar Factories through Partial Privatization and Opening of the Sector for Competition (05.07.2019)

Uganda-Rwanda Tensions Part VI: Press Statement on a Public Interest Litigation Case on the Closure of Uganda-Rwanda Border (01.07.2019)

Uganda Telecom Limited: Hon. Evelyn Anite letter to President Museveni (28.06.2019)

Zimbabwe: Lack of trust is the key to everything…

Well, this last few days has been revealing, as the state have added more measures to try to wheel in the economy, but if it will stick boils down to one important factor. That important factor is if the public, the citizens and the stakeholders trust the government and their policies.

This is the key with relaunch of the ghost currency, the decade long missing Zimbabwe Dollar, the joining currency floated after Bond-Notes and RTGS Dollars. Which is supposed to save the economy and bring a new normal. In an economy where there are spiralling prices, lack of imports and also lack of trust in general; this is not directly strengthening that, but surely is a test.

If the Second Republic and the second regime under Zimbabwe African National Union – Patriotic Front (Zanu-PF) is to stick around, they need to fix this. They cannot have another crash, have another big blow and weakening economy. There is already plenty of issues as is, last years taxes on mobile money and transactions took out lots of funds from the economy in direct taxations; these funds have been taken by the state and never returned to the market.

With this in mind, the state is in dire need of change, to build up self-esteem and hope for a better future. However, is the launch of the Zim Dollar, the right thing to do?

Is it about right to monopolize all buying of maize to the Grain Marketing Board, where the public is not allowed to sell or transport even a set amount of maize without licence or without authorities authorizing the transport of the maize?

Will these things make the economy stronger or will they have a negative effect like the RTGS taxes of last year?

I am thinking so, because there is very little evident of good hopes on the horizon, of possible unique changes or patterns, which the state will benefit in huge quotas from this. By all means the ZANU-PF will say it is making progress, that its all good, but not long ago there was fuel shortage and other things lacking because of lack of foreign exchange. The Reserve Bank and the other authorities better be prepared and have good advice for these changes. If they want to revive the currency, they better have a gold standard, a reach and not print money like there is no tomorrow. Since, it doesn’t take much to devalue a currency and also get hyper-inflation. Especially, when the society, the financial institutions and the whole market are sceptical about the whole deal.

The Zim Dollar and the GMB might be good ideas, might be brought to the market by good means, but will only bring more pain or suffering. As the farmers, the traders and the citizens will bear the costs, as the state is figuring out new ways to control and secure funding without adding investment or collateral for these investments. Certainly we can hope for otherwise, that the Finance Minister and everyone else involve has a well functioning plan.

However, do we really think so? Do the ZANU-PF deserve this trust and the good faith? Do they? Alternatively, are they just another military junta finding new ways of scheming for funds? Because, that wouldn’t shock anyone of us. If they are making new commissions or inquiry boards to settle old sins and hire cronies. That is what they do and not really making progress.

We can lie to ourselves and say it will all get better with these measures, but are we really certain? Do they really do all good? Does the ban of foreign currency really help? When the state functions are still taking US Dollars for functions and expecting foreigners to pay in US dollars. Do the RBZ and the Ministry really configure this or are they winging it?

There was one fella, who called the Zimbabwean economy an albatross; I think he was right, I really think he was right. By all accounts, there is little luck and little positive to find. We can joke around, mock and make a fuzz. However, the dire consequences are that teachers cannot food; the civil servants cannot pay for mortgages and so on. It is a dire need for change and for trust in the economy. Nevertheless, as long as the ZANU-PF is playing along, there will be questions. Many, unanswered, which is bringing no good. Even when the measure might have been made with grandest intent. Peace.

Uganda Telecom Limited: Hon. Evelyn Anite letter to Attorney General William Byaruhanga – “Removal of Administrator of Uganda Telecom” (28.06.2019)

The Chamber of Mines of Zimbabwe: “Re: Demonetisation of the US Dollar and New Currency Trading Measures” (25.06.2019)

Cameroon: Ambasade de la Republique du Cameroun a Berne – Communique (24.06.2019)

Zimbabwe: ZNA letter to President Mnangagwa – “Re: Nurses Grievances” (21.06.2019)

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