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.
President Joseph Pombe Magufuli isn’t the sort of guy, that handles critics or opposition well. He is the sort of guy that needs all praise and benefits of a doubt. Therefore, the latest move is in a long line of questionable behaviour from his party, his apparatus and his administration to stifle voices of another opinion.
The Tanzanian government under Magufuli is a paranoid and wavy state. Where everything hangs by a thread, if your in the good graces of the President or not. If your not or if you questions him. He will take your license, suspend your newspaper or even detain you for a various reasons. That is the state of affairs. So, that the President and his people have blocked an unfavourable report from the International Monetary Fund isn’t surprising, it is more of the same.
This is from the same man, that has arrested MPs for speaking ill of him. This is from the same man, that didn’t like articles written the The Citizen to later suspend that too. Therefore, when someone dares to question his ways and orders, he will strike with fury. That is the man, the governs and leads the Republic.
Here is some pieces of information, that might be the reason why the Article IV Report of the IMF was blocked from publishing. With the Press Release of the block from IMF, before a Stratfor explanation and projections of the World Bank.
IMF Press Release:
“On March 18, 2019, the Executive Board of the International Monetary Fund concluded the consideration of the 2019 Article IV Consultation with the United Republic of Tanzania” (…) “The authorities have not consented to publication of the staff report or the related press release” (IMF – ‘Statement on the 2019 Article IV Consultation with the United Republic of Tanzania Staff Report’ 17.04.2019).
“What Happened: An apparently leaked report by the International Monetary Fund contains criticism of the Tanzanian government’s interventionist economic policies and noted that they are hurting the country’s investment climate, Bloomberg reported April 18. The Tanzanian government subsequently decided to block the report’s release. Why It Matters: The report will likely serve as an alarming sign for international investors who already have been concerned that the Tanzanian government is targeting foreign multinational companies” (Stratfor – ‘Tanzania: IMF Report Criticizes Government Measures’ 19.04.2019).
World Bank Context:
“Economic performance in 2018 was mixed, while inflation remains low and stable. The National Bureau of Statistics did not release any quarterly gross domestic product (GDP) data for 2018, pending completion of a rebasing exercise. However, available data suggest signs of softening of the growth momentum” (World Bank in Tanzania – Context, 01.04.2019).
We can clearly see why the President didn’t want this to get released, also that his administration would further hit their goals, when concerning their economic forecast. This is damaging the image and also the confidence in the financial system. The IMF would have told a story that the administration didn’t want to hear or listen too.
That is why it hasn’t been released, because the President who wants all positive and praise. Cannot manage an independent entity from the outside coming with a message or projection, which isn’t fitting the narrative of the CCM. At this point, that is the message I get out of it.
Magufuli and the Tanzanian Administration could have turned the projections and the forecast. They have the ability to create stability and trust in the financial system. However, they are instead stonewalling and continuing on this path. They are not creating confidence of the acts of the government from the outside. It is backfiring instead, but this is from the administration that has to verify and give a stamp of approval to release statistics.
Therefore, we know how far this administration goes. Now, they are even stopping Article IV Report from being released. That is a sign of weakness in the economy. Peace.
Last year, the Chama Cha Mapinduzi (CCM) and President John Pombe Magufuli issued amendments in 2018 on the Political Parties Act, which was issued this year. This is laws that is severely restricting the Political Parties in Tanzania. Today, it is official how seriously damaging these laws for the other parties in the United Republic. They really warned about the wrath and rage of the authorities. They are coming with an vengeance, like there is no tomorrow.
Today, there is released a letter sent to ACT Wazalendo, Zitto Kabwe party, one of the major opposition parties in the Republic. Today, Sisty L. Nyahoza letter to the party, warned the party, that it could get deregistered, because it hadn’t fulfilled it requirements concerning the release of information the annual statements on the finances of the party for the year of 2013 – 2017. Since, that is the matters of the state now. This is the statement of the Registrar of the Political Parties, which sent this letter or the Amwani ya Simu ‘SIASA’.
Therefore, today is a sad day for the democracy, this is a bad day for the Republic. As this was warned with the new legislation and knowledge, that has been out there since early 2018. It was on the horizon, but nobody wanted to warn of the rain, sun or even the snow. Because, everything was fine and dandy. Alas, if it is to much sun, it become drought, if it is to much it is a flood and if it is to much snow, there is a snow-storm. Therefore, the reaction of today wasn’t shocking nor surprising, but awaited.
The Tanzanian government became one step further with the amendments on the Political Parties Act. Even if the President and CCM claims otherwise, but when it becomes this easy to deregister opposition parties, shouldn’t the CCM also show the same transparency or is it cool; since they are in power and controls all parts of government?
We know President Magufuli is a whiny little bitch, who cannot muster any courage or balls to stand-up for his actions. A President that wants to be high and mighty, but acts like a coward. That who he is and that why, laws like this exists. Because, he doesn’t have the will or the ability to just install himself as the grandest man ever ruling the United Republic. The deity amongst men. That is who Magufuli is, at least how he acts.
It is time to just get his wish. The genie is out of the bottle and yet another step to ONE-PARTY STATE is there. Since, the Registrar of the Political Parties issued this warning and certainly with the knowledge of what the authorities has done already to the Opposition. The CCM has ensured hard life for the opposition and now it turns even worse.
Now ACT Wazalendo is in dire straits, unless the Registrar shows mercy, but if by history of the what the authorities does in Tanzania. In a short amount of time, the ACT Wazalendo will be over with. Then, it is the next victim… whoever that might be. Peace.