Zimbabwe: The Press Statement on the Breakfast meeting between government and business (29.10.2018)

Reserve Bank of Zimbabwe: Press Statement – Purported Sale of Demonetised Zimbabwe Dollar Notes (26.10.2018)

Press Statement: Suspension of Senior Reserve Bank of Zimbabwe Officials Pending Investigations (25.10.2018)

Zimbabwe: Ministry of Finance and Economic Development – Terms of Reference – Communication Task Force (18.10.2018)

Minister Ncube letter to Acie Lumumba: “Re: Ministry of Finance and Economic Development Communication Taskforce” (23.10.2018)

Zimbabwe: Second Republic – Fifth Meeting Decisions Matrix 23rd October 2018 – Price Hikes and Depressed availability of Basic Commodities and Medical Drugs (23.10.2018)

Zimbabwe: Acie Lumumba was fired, before he was really hired!

That Finance and Economic Development Minister Mthuli Ncube looks clueless these days is evident. As on the 19th October 2018 he had an photo-op and a letter appointing Acie Lumumba as the Chair of his Communication Taskforce. However, on the 22nd October the Ministry of Information, Publicity & Broadcasting said this:

Mistakes were made but advice from govt lawyers indicate there are legal housekeeping issues regarding the Procurement Act Cap 22:14 which need to be regularised and the Ministry of Finance is dealing with that” (Ministry of Information, Publicity & Broadcasting, 22.10.2018).

Clearly, the foul-mouthed, free-talking former ZANU-PF was to much to handle. This is like the mouth of Anthony Scaramucci in the White House. Who was hired and fired before really starting his job as White House Communication Director. The ZANU-PF are going within the same parameter with this hiring and firing. It is the same level of incompetence and lack of due diligence.

Now, the mistakes and regulations has to be looked into, as the operative Communication Taskforce wasn’t in full effect. However, someone knew this was happening and someone had given a heads-up for doing this? If not they are looking even more clueless and lack of procedures before hiring and appointing boards or operations within the government.

They knew before hiring, that Acie says whatever he feels like and acts a big-shot. He wants to be big-man in the family and wants to ride the fancy car, even if he complains that the civil servants has one. He wants himself two of them and without cost. We all know it, but acts indifferent.

Lumumba knows the game perfectly well, but that this Taskforce would back-fire this quick. That the mouth of Acie would have aftermath. That was special. Even as the Minister Ncube are getting other to speak on his behalf. As he knows perfectly well why he did it and why he hired him. We don’t know that yet. But this is mere days after the appointment and still no effort of explaining. Just that it is a mere mistake. Like putting salt instead of sugar in the tea. I know it is ghastly, but that is why refill and try again with new boiled water.

Clearly, Ncube isn’t a big game changer from Chinamasa, as the new Minister hasn’t proven any skills or any ways to make it better. Only to ensure the same old troubles of inflation, lack of foreign currency and trying to forge a narrative of someone else fault for failing economy. Instead of coming out saying, that he had no idea what the consequence would be if they levied the newly minted taxes. Which has hit the economy and the foreign exchange to a manner, that the Republic haven’t seen in 10 years. When the economy went of the rails.

We just have to wait and see, as the damage control is under way. Lumumba saying no one can hire him and has the biggest company ever. However, he did smile and have the photo-op. We are not that stupid. Even if he thinks the people is…

ZANU-PF, stays Pfee the future away. Let see how this will twist. Certainly, it will not boring. Peace.

RBZ: Suspension of Senior Reserve Bank of Zimbabwe Officials Pending Investigations (23.10.2018)

“The RBZ has suspended 4 senior employees implicated in corruption by Acie Lumumba.

Those suspended are

1 Norman Mataruka

2 Azvinandaa Saburi

3 Mirirai Chiremba

4 Gresham Murazikwa” (Povo Zim, 22.10.2018).

Opinion: Mnangagwa’s albatross, the economic crisis, that is self-inflicted!

This is a short time coming. It isn’t a long ago the 2 % taxes on Mobile Money Transactions and other financial services came into effect in Zimbabwe. Still the ramifications has been dire and the consequences has hit all walks of life. Even Unions and Civil Servants are asking the government to get their salaries in US Dollars, than in the Bond Notes. That shows the lack of value in the temporary currency, which is still floated around and never was really a good idea in the first place.

That President Emmerson Mnangagwa tries to show some concern by writing to the Republic in the midst of credit crisis, a foreign exchange crisis and the sudden lack of imports of products because that is good. However, he is trying to say they ones tricking and finding a way to make is the issue. Not that the government haven’t done their job to monitor, safeguard and build a resilient economy. If they had done that, they would have known the consequences of their actions and would also have mechanisms that could ensure the balances of books and also enough reserves to fill the gaps. However, that is pipe-dream, as the ZANU-PF are making sure the hyper-inflation and lack of goods becomes a main-stay in ordinary life.

Here is notable quotes from what the President wrote on the matter:

Sadly, events of the past two weeks have shown this is not so. Not everyone is playing to the rules. Partly because of wanton illicit currency deals happening in what is known as the black market, our economy has been disturbed. We have suffered massive market failures, manifesting in complete collapse of the pricing framework for virtually all commodities, regardless of import component. There has been a run on the bond note. In all this, there have been no winners, given that at the end of the day we are all consumers who demand and buy goods and services at any one stage for our survival” (Mnangagwa, 2018).

Lately, our law enforcement agencies have been investigating these illicit activities. It has come to light that the money changers we see in street corners are mere “runners” who work for big currency sharks who operate from high places in air-conditioned offices. The real culprits are not these “runners” who are but a tip of a big and scandalous financial iceberg” (Mnangagwa, 2018).

Currently we have no legislation to deal with currency manipulators. We therefore need urgent and robust measures to deal with this financial menace. Of course, I am aware of what else needs to be done by way of policy changes and key adjustments in different sectors and aspects of the economy, including in the public sector. These changes and adjustments are already being done, and will continue to be done until Government plays its own part in stabilising the economy by living strictly within its means” (Mnangagwa, 2018).

Let’s be clear about the value of the currency and the inflation, these are rates that barren on the principal that the Financial Ministry and Central Bank are controlling. Such in a manner, where the Monetary Policy and the International influence are in tandem. To an such extent that they are making sure the wages, the prices and the value of currency are leveled. In a manner, where it is livable and create a fixed growth. However, in Zimbabwe it is a free-for-all. Where a single tax and a lack of oversight with the Bond-Notes, also the oversight of currency in general. Are the reason for the short-falls and lack of cash. This is done, because the state isn’t doing their job of creating sufficient mechanisms and reserves to have a baseline even for the economy. When that is created and the vacuum has to be filled, the prices on the currency is growing, the inflation’s and the higher prices is the outcome. This isn’t something new, but an old ways of lack of resources, lack of basics and the needs of the market to push prices to cover costs. This isn’t manipulations or sharks. This is laziness of the Financial Institutions and the ones not using their oversight rule.

The already weak Bond Notes, the hated ones, that never was a good idea. Has ensured this downfall of currency. Combined with higher taxes, that takes vital funds out of the market and also empties the reserves of the companies to get more foreign exchange, but also makes it more expensive to get new stocks in the shops. This is a negative spiral self-wounded by the government, by a quick trick of transactions expensive and seeing the short-fall happening as consequence.

The previous Finance Minister called the Zimbabwe Economy an Albatross, I think he was right. Because there seems to be no one caring for having reserves, thinking of a rainy-day and also thinking of the outcome of any measure done into the economy. They should have built graphs and expected certain reactions to the levied taxes. However, they seems shocked and the President has to make excuses. Instead of saying they are incompetent and not having the man-power to stabilize the economy. They are instead making the currency traders, the Forex businesses and whoever who imports goods to blame. Because they are not seeing the Albatross, and neither the consequence of their actions.

The President and his men, should have known better, but they act all holy. When they are the ones living in sin. Peace.

Reference:

Emmerson Mnangagwa – ‘Stabilising the economy: Tackling the parallel market’ 21.10.2018 link: http://www.sundaymail.co.zw/stabilising-the-economy-tackling-the-parallel-market/

Zimbabwe: ZIMTA – Press Release – Demand for Salaries in Foreign Currency (19.10.2018)