Zanu PF is it's own worst enemy

HARARE - From the beginning, it was clear steering the economy was going to be a tall order for Zanu PF. 

And hitting the ground running was essential if the ruling party was to get the buy-in from the population.

It took Finance minister Patrick Chinamasa months to put his budget together — the reason, there was no money in the kitty.

When he finally presented the budget, he admitted he had done to fulfil a statutory requirement, that a budget had to be in place.

Analysing the spending plan, it was clear key areas that needed to ride herd on the economy — mining and industry — did not get the funds needed to revive and propel them to commanding positions.

So too were social services grossly underfunded — they continue to deteriorate. The Zimbabwean economy, which bottomed out during 2008 was only revived after adopting the multi-currency system.

Despite election promises to grow the economy by 6,6 percent and create 2,2 million jobs, poor indigenisation policies which require investors to cede 51 percent shareholding to locals, have scared away investors.

Meanwhile, the local industry is unable to compete with imported products, and has continued to shut down and shed workers.

The ruling party’s ZimAsset, a policy blueprint which is supposed to drive the revival of the economy has been described as a “pie in the sky” and requires a massive $27 billion to be operationalised.

The economy is now in deflation — a signal the economy is shutting down.

Government has sought to borrow $4 billion to fund its recurrent budget, an idea which even their erstwhile friends the Chinese have rejected on grounds it does not fund national budgets.

ZimAsset also says the country will borrow money from the Brics countries — Brazil, Russia, India, China and South Africa, all of which have their own problems. Brazil is currently struggling to finish stadia to host the World Cup next month.

Russia has burnt its fingers in Ukraine and faces American and European sanctions. India has never  been close to Zimbabwe. China has made clear its stance and South Africa stopped short of giving the country money during the Government of National Unity era.

The Bretton Woods institutions have ruled out any new funding unless a number of conditions are met, including reducing the civil service wage bill,  strengthening the banking sector and paying back the $6 billion debt.

The Zanu PF government  has of late been talking about mortgaging the country’s mineral resources to get funding. This is a desperate move that would sell the “family jewels.”

Our children and great, great grandchildren will want to run this country in their own way.

Should we limit their options because this generation tied them to a certain way of thinking?

We don’t think so.

Comments (6)

they will mortgage everything including zimbabwe itself. cry our beloved country.

kt - 13 May 2014

Kkkkkk, bhora mughedi. What surprises me most is how these guys keep jumping from this country to another looking for funds, that's day dreaming Chinamasa. First deal with corruption in the country, restore the rule of law,implement sound policies.Nobody would ever want to invest in the hands of greedy thugs,who are failing to account for our own diamonds, its a shame. Restore investor confidence and do away with your command style rule,it scares away investors. For your own information,it is simple things that will paint you black forever.Everytime your army generals come out declaring kuti hapana asina kurwa hondo achatonga nyika ineyi,it doesn't end on the political side of it only,its a clear reflection how there is no rule of law in the country,so a right minded person would know that if these people come into power any day,they can just wake up saying we have taken over all businesses. At the moment,Zim is not safe for investments. Bhora mughedi.

Shona Rusere - 13 May 2014

Now where is Mugabe? is he in the country or Asia ? Why does not he tell the people exactly what is he and zanu doing about the economy situation. Is he waiting for someone to die then at the funeral that is where he will talk about the economy as usual ? Or is he spending days sleeping due to advanced age? What is happening mukhulu?

Diibulaanyika - 13 May 2014

ZANU PF may hold thousands of politbro meetings but to no avail.Zimbabwe is a bottomless pit financially.No serious investor will trust a country ruled by daylight thieves & thugs for that matter. A father who chases beer holes,smallhouses & betting syndicates while his family goes hungry is just a selfish idiot.

GARAN'ANGA - 14 May 2014

ZANU PF may hold thousands of politbro meetings but to no avail.Zimbabwe is a bottomless pit financially.No serious investor will trust a country ruled by daylight thieves & thugs for that matter. A father who chases beer holes,smallhouses & betting syndicates while his family goes hungry is just a selfish idiot.

GARAN'ANGA - 14 May 2014

ZANU PF may hold thousands of politbro meetings but to no avail.Zimbabwe is a bottomless pit financially.No serious investor will trust a country ruled by daylight thieves & thugs for that matter. A father who chases beer holes,smallhouses & betting syndicates while his family goes hungry is just a selfish idiot.

GARAN'ANGA - 14 May 2014

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