Reserve Bank of Zimbabwe (RBZ): On the Suspension of Monetary Transactions on Phone Based Mobile Money Platforms (27.06.2020)

Zimbabwe: MDC-Alliance – Statement on the Unlawful, Ban on Mobile Money Operations & the Suspension of Zimbabwe Sotck Exchange (27.06.2020)

Zimbabwe: Press Statement – Suspension of Monetary Transactions on Phone-Based Mobile Money Platforms (26.06.2020)

Opinion: Is Amin relevant in 2020? [Mr. 1986 thinks so]

Uganda’s economy had collapsed completely during Amin’s time. There is no economy in the world that collapsed completely like Uganda. To revive this economy, our priorities were different from other neighboring countries. As a country, we budget to build a durable base and a viable political unit that will defend us. It’s like building the armed forces, if you don’t have an army, you don’t have education, security, health, etc”Yoweri Kaguta Museveni to US and Belgium Ambassadors at the Entebbe State House on the 25th June 2020

Sometimes I wonder, how come these folks are still in power and leading nations? Yes, we should never become so ignorant or forget our history. That is not my point here. History is important so we can learn and not do the same mistakes as our forefathers. Also get enlighten to create a better tomorrow.

However with that in mind, the statement released from yesterday’s meeting with US and Belgium Ambassador from the President is worrying. Since he needs to go back 40 years in time. He needs to go back to the time before the second stint of President Milton Obote. That’s how far he goes to give himself credit.

The President wouldn’t have gotten all the goodwill and the revival of the economy if it wasn’t for donors, grants and direct aid for years. The President was a donor darling in the 1990s and was blessed from everywhere. He even started some positive initiatives, which he never really finished. Just like the Standard Gauge Railway, Universal Primary Education for all and so fourth.

There are plenty of pledges and promises never realise or actually do. The President has promised the world, a fundamental change, but that hasn’t come. The King never let thy Kingdom Come, thy will be done. He has eaten in office and forgotten his vision, his vision and the 10 point programme.

That he praises his economy, when the budget is mostly financed with debt, raising loans and grants for development projects. There are over half of the budget covered with debt and already paying trillion of shillings a year only in interests alone. Therefore, him praising the economy is a bit far-fetched when deficit financing is the key to operate. You know something is up and that is why he needs to sweet-talk the dignitaries yesterday. They are the ones giving him the needed funds to cover his life-style and pay off his cronies.

The state have not the capacity nor the revenue to continue at the current state. That is why its loaning itself to oblivion. That is why the budgets are crushed and suddenly lacking funds for salaries, arrears and whatnot.

If he had so many achievements he wouldn’t need to beg foreigners for donations and grants. He has done this for over 3 decades. If he was such a great head of state the state would have been able to gain natural revenue on itself for its expenditure. However, we know that is not the case and his not interested in that.

I think if Amin’s reign is relevant for his achievements. today Yes he made peace, but a fake peace. A peace that is fragile, because he needs the army in every instance and at his beckon-call. There is very little remaining of his achievements. They are dwindling away and his merits on civic, social and political levels are being traded away for the cost of his prolonged reign. It is like he wants to burn the little efforts of the past on the glory of being the ruler at present day.

The rest wasn’t all him, but he tries to take credit for everything. He wants so badly to be the father of the nation, but lost his grip. Since he lost foothold of reality and of the course the Republic needed.

So in this regard, should the old man with the hat still be claiming greatness in comparison to Amin in 2020? Does the younger generation, the new electorate really care about that? Does the future hold another destruction of society and another civil created out of the space post-Amin?

If so, then the merits of Museveni is all at question. As the warnings that he might rejuvenate a similar fashion of elections like in 1980. That is how we are repeating the same ills of the past and letting one tyrant continue the tyranny. This is why the President wants to praise his achievements after him. Everyone will look golden if they are trying to compare themselves to Amin at this point.

Mr. 1986 should be careful about talking about his record, his achievements and his reign. The President has had his time. The time that he hasn’t spent wisely, except for finding ways to overstay.. Peace.

Djibouti: Creation of the Djibouti Sovereign Fund (DSF), a key instrument for inter-generational saving and modernizing the national economy (25.06.2020)

Reserve Bank of Zimbabwe: Press Statement on the use of Bank Notes and Coins (19.06.2020)

Zimbabwe: Dollar Dollar Bill Y’all!

Cash rules everything around me

CREAM, get the money

Dollar dollar bill, y’all” – Method Man on Wu Tang Clan’s – ‘C.R.E.A.M’ (1994)

I don’t know and I cannot count how many currency and monetary reforms that been since the launch of the New Dispensation from the Mnangagwa Government. What I do know? There’s been plenty and countless of initiatives in concern with the currency. Which was made to stabilize and supposed to ensure a steady rate in the inflation. However, that ship has sailed, as the rates are over double-digit and its not getting better.

The Zimbabwe government has stopped and reopened opportunities to have foreign currencies in trading. Today is not different. Just like a year ago in June they ceased to trade with United States Dollars. Today they are returning through bank action and able to show prices in Zimbabwe Dollars and US Dollars in the shops.

The return of this imminent. As the value of the Zimbabwe Dollars are depleting, the inflation is out whack. The money is getting devalued and destroyed. The state knows, the Reserve Bank knows this and the people know it too. This is not new, but the normal mockery of financial stimulus and fiscal responsibility, which causes this damage on a regular.

There is no trust in either the Ministry of Finance nor the Reserve Bank. All institutions are running a shit-show and hoping to trade insults to save their lives. They are all just pinning on duck and hoping it doesn’t quack. It is like an endless circle of Bond-Notes, RTGS-Dollar, Zimbabwe Dollar Notes and unattainable monetary polices in concern with the US Dollars.

In June 2019, the President proclaimed this: Except that if you want to transact in any shop, if you want to buy your tea and milk in dollar or euro, then you must go to bureau du change” (Mnangagwa, 25.06.2020).

Now a year later the opportunity to use US Dollars is back and the promise of “normalcy” is a far-cry from reality. As the state, the institutions and the men behind the monetary policies cannot figure out the trick of the trade. They don’t have the ability nor the slightest idea on how to stable the economy nor ensure any trust in the currency they are printing. It is like a gift of misgivings and lack of integrity.

The whole state could fix this, the men behind this could really try to do something. They should first quit their day-jobs, because they are not up for it. These people have tried and tried. Done so much work for nothing. They have been jibber-jabbing for so long without any luck.

So since nothing is working. We can all just put on the old classic Wu Tang Clan joint ‘C.R.E.A.M’ and sing: “Cash Rules Everything Around Me/Cream, get the money/Dollar Dollar Bill, Y’all”. Peace.

Opinion: The Tories wants to weaponize foreign aid now?

The government department responsible for overseas aid is to be merged with the Foreign Office (FCO), the BBC understands. The move to combine the Department for International Development (DFID) and the FCO follows a review into UK aid spending by crossbench peer Lord Bew. Boris Johnson is expected to confirm the move, long mooted in Conservative circles, in the Commons later” (BBC.com – ‘International development and Foreign Office to merge’ 16.06.2020).

If your thinking the Little Britain is getting better on the world stage with the Tories in power. This sort of move is directly weaponizing foreign aid grants. Instead of having a separate department working on own terms to actually develop and make a difference. That is, if the ideal is to bring a change and making a difference.

This from the party that still clings on top the dreams and ideals of the greatness of the British Empire. An empire that is long gone and the powers of the United Kingdom has already dwindled. They will be even more weaken and lack soft powers internationally when they are finally left the European Union (EU).

The move is to replicate the Secretary of State in the United States. They are copying the mismanaged militarized state supported development schemes of the United States. That is not a good look. Especially, if the UK want to be serious actor on the world stage and look sincere in their motives. However this paradigm will be more of the political motivations at home and bring brownie points to the current leadership. Then actually make a change.

I don’t see any positive out of this, than they will make political moves instead of actually do what its supposed to do. We already knows there are strings to it and reasons for the development projects and aid. No money is free money, if you believe that. Then your lying to yourself and accepting money from someone. There will be something you need to do. If that is being accountable, prove the recites and that it actually was spent on intended projects. Hitting a set of goals and reach a set amount of people so the foreign donors can tell their tax-payers that it was worth giving this money away.

This is something we all know. If not … we are lying to ourselves and thinking the monies are giving away with naive intentions and can be used on ghosts without any fuzz. If it was so, then the donors would quit quickly and be hostile to continue the practice. There is a reason for certain measures and conditions for taking the aid and grants.

The DFID incorporated into the Foreign Office will only turn every move more political and the ambition of it will change. It will depend on whose in office and who is running the Foreign Office. That means the objectives will turn and will be what is benefiting foreign policy agenda. It will be more business oriented and towards the goals of the current leadership. Instead of being a supposed a long-term development tool in the world. It is not perfect, but at least have had some results and some positive use of its currency.

Now we can expect more political ambition behind the grants and the aid. It will be fitting with the additional pressure of the foreign office, instead of the concern of development or actually making a difference. Expect they will invest in a lot white elephants and waste as it fits the political agenda more than what is actually needed in the nation they are spending funds on.

That is my estimation of it. As well as they scrap a lot of projects, a lot of programs and participation as its not positive politically back-home. Even if it does something positive where these things are actually running day-to-day. Peace.

Hima Cement: Press Statement (16.06.2020)

The Art of Deficit Financing: Budget 2020/21

Deficit financing, however, may also result from government inefficiency, reflecting widespread tax evasion or wasteful spending rather than the operation of a planned countercyclical policy. Where capital markets are undeveloped, deficit financing may place the government in debt to foreign creditors. In addition, in many less-developed countries, budget surpluses may be desirable in themselves as a way of encouraging private saving” (Encyclopaedia Britannica – ‘Deficit financing’ (25.08.2015).

What is striking from the 2020/21 budget is that its not only 45 trillion shillings, but the way they are financing this spending. Because, the budget need financing or revenue to pay the expenditure. You cannot use air to pay the bondsman. The people you owe money or supposed to spend on needs real cash-flow and liquidity to be fiscal responsible.

What we learned again is the debt deficit financing, which has been common staple in the Republic. Since domestic revenue or tax revenue is about 20 trillions shillings. This means that the rest of the budget has to paid for in various of other ways. In this regard, the state are borrowing, refinancing and gaining more debt. As the state is also wasting more of the budget on paying interests.

This is really making a evil circle and continuing debt trap. Even if the trillions upon trillions owned by the state is growing. That this still haven’t hit a debt ceiling. However, the issue here is the amount of paying interests. They are wasting away money on paying for old loans. This is what the state is initially offering. While it is gaining new debt to finance the over-expenditure today.

When the state pays 4 trillion shillings (9% of the budget) in interests. That shows how destructive this is for the budget. How important it has become. When 1 in 10 shillings of the budgets are paid in interest. This money could have been spent in all parts of society. It could have changed people’s lives and invested in the future. Instead its paying on the debt trap created by the same state.

Deficit financing and refinancing will only ensure the future generations are paying for the growing debt created by the current government. They are borrowing on the future growth and supposed revenue. Even as the state is ballooning the budgets, that they are not able to cover more than half. That is worrying and should worry the republic too.

Yes, that budgets get ballooned in election years are common. That the budgets are insincere and write of taxes in these years are typical too. All of this isn’t new. It is what happens when the Republic is preparing for elections in the coming year. Therefore, the state needs a treasure chest to bling out on chiefs, voter tourism and whatever else to look good for everyone.

That is why this budget is like this. We can clearly see that the state are continuing to acquire more debt, which means the interest payments will grow every year. This is why the refinancing and growing debt should worry everyone. Because, just like the interests payments are now at 9% or 4 trillion shillings this year. We can wonder how it will look when the grace-periods of several of loans are over and the initial price of these as well.

The Republic of Uganda deserves better, but the leaders and the ones in-charge are making it like this. They are not concerned about the future and that is very clear. As they are spending and squandering away the future today. Then someone have to pick up the tab in the future. Peace.