Open Letter to RBZ Governor

Dear Dr. Mangudya

Your address to journalists was on point and you articulated on most of the issues affecting the economy. You spoke so gloomy about the problems but the solution side left a lot to be desired especially in the wake and spiralling of the said problems which are continuously eating away our chances of stabilizing the economy let alone growing. Sir, you announced a salary freeze, not to my surprise because obviously you can’t increase salaries on a contracting economy. You called for investments in the three sectors you have named, maybe on this one you meant FDI if not such calls are doomed with cash strapped Zimbabweans. The only affordable business to many as it stands is importing and selling and yes that’s the cheapest thing to do. You also called for value addition of resources before exportation to balance BOP. Of note Sir, you also pointed out on the issue of the appreciating US$ which is proving to be a more expensive currency for the economy compared to our trading partners making imports cheaper in the process. On this I believe the short supply of the US$ is again exerting more pressure on the situation and it is in our watch as the situation deepens.

You made a good note of the problems sir, but the problems will always remain if we navigate the root of the problem. All these economic problems you have stated are not but signs of a chronic liquidity crisis that is growing day in day out. Maybe it’s because we have lost courage as a country to solve our problems but not to an extent of disillusioning ourselves in the pretext of a comfort zone that is non- existing. The major and main problem to the situation is the currency and only the currency I repeat. Finding a solution to the currency problems will see the situation remedying itself without further efforts. You cannot tell a lowly paid person to opt for a locally made expensive good. Yes local goods are expensive and you have mentioned it, it’s a currency problem. Yes we are lowly paid because there is no production in companies; they cannot produce where there is no demand. It also balances back on the currency problem. Companies are always crying if they could find cheaper lines of credit they would expand and with a borrowed currency obviously we cannot do anything. On this issue and for the second time, when asking for advise please go for people who have knowledge about the situation and stop asking fear-gripped people, they will obviously say no to our own currency but that is the only solution. Speaking of which, I am not ignoring the blackened past with our own past but I thought we had picked a lesson from it and this time we might do things the right way. One honourable thing I also continuously call for is to draw the lines between politics and economics at least for this case. How about establishing an Economic Intelligence Unit to carry out the task and you put some of our brightest minds in there to tackle the problem. I think this one works and I have the confidence. Looking at Germany today you won’t believe they once crippled like we have done

To take back the economy on track, I think this will definitely work and I am 100% confidence it will. Yes we need policy documents to support our vision and goals. We need a budget as a country. We have the budget; we have the ZimAsset which I barely read because of the following reason: It might have been the best of the policy document ever penned but without political will and financial capacity it doesn’t make any sense. And on financial capacity, if almost all government collections are going to paying salaries, for the people you have said not to be productive then we are just experimenting with the economy sir. I heard you vowed you won’t do so but you are already in it.

Sir, our economy misses our own currency period.

Francis Chinjekure


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