“Is Mugabe aware of Zim's dire straits?”

HARARE - Industrialists have questioned President Robert Mugabe’s awareness of Zimbabwe’s economic dire straits.

This comes as the country’s industry is in a deplorable state, with many companies shutting down and many more projected to as the country’s economy deteriorates further.

Recently, Finance minister Patrick Chinamasa backed down on his 6,2 percent 2014 GDP growth target to 3,1 percent on the back of depressed economic activity.

Last week, Conferderation of Zimbabwe Industries CZI)’s past immediate president Kumbirayi Katsande expressed concern over Mugabe’s comprehension of the current state of Zimbabwe’s economy.

“I would like to ask the honourable minister of industry (Mike Bimha) if the head (Robert Mugabe) is up to date with the current economic condition,” he questioned at the just ended CZI congress in Mutare.

“I have noticed we invite him (Mugabe) to officiate and open companies, but never invite him when they close down,” said Katsande, who is also Nestle Zimbabwe managing director.

About a fortnight ago, Mugabe claimed, at the President’s Medal Shoot prize-giving ceremony at Cleveland Rifle Range in Harare, that Zimbabwe was experiencing economic growth.

“Let me assure our people that the country’s economy is on a recovery path. Government is going to employ several measures aimed at achieving desired results,” the 90 year-old leader said.

But, his remarks come as government is struggling to foot the civil servants’ wage bill, among other obligations.

About 86 percent of government’s expenditures is spent on recurrent expenditure, particularly salaries.

According to Bankers Association of Zimbabwe president, Sam Malaba, the country is struggling with a total debt $8,9billion, with $4,9 billion being external arrears while $2,4 billion is multi-lateral nation arrears.

Meanwhile, the country has seen an expansion of the informal sector – estimated to employ about 5,8 million people – as the formal sector shrinks.

However, Bimha insisted that Mugabe is fully aware of the dire state of Zimbabwe’s economy.

He said the president had even asked him to compile a comprehensive report on the state of industry with a view to finding solutions to the constraints that the private sector is facing.

“He (President Mugabe) said we want to know what is happening to industry, sector- by-sector, we want to know the constraints industry is facing and what government can do to assist,” said Bimha.

Bimha also said government had set up two advisory committees, one on ease-of-doing business and another on imports, to help craft solutions to the country’s economic woes.

Comments (14)

You were told Mr President. "You can rig the elections but you can't rig the economy. Tongai tione?"

Peter - 5 August 2014

@Peter:::::!!! ZANUPF won the elections. Rigging lies are not longer relevant anymore. Just tell your MDCT handlers (US/UK) to remove the sanctions if you care about the people`s suffering

Cde Mzvinavhu(Prof) - 5 August 2014

We have said many many many times that insane people see want normal people do not see . Insane people see sanctions which you and me who are normal can not see , it is not their fault they are not sound mentally . Rhodesia had fully fledged economic sanctions but the economy was flourishing . The bottom line is our country is being run idiots who can not make use of the great natural resources that we have . Actually they do not care about the economy instead they are now busy plotting how they are going to rig next elections so they have no time for this economic thing .

Diibulaanyika - 5 August 2014

Politicians are not economists, Doctors are not farmers, Soldiers are not investors and criminals are not bankers. But in Zimbabwe its very difficult to distinguish the difference. No wonder the economy is in trouble, because the politicians are managing the economy, Doctors are farming, Soldiers are mining and investing, criminals are running banks. Its a cocktail of disaster which can crush at any time. Hospitals are without Doctors, Farms are without farmers, Factories are without investors, Parliament is without Politicians, Banks are without Bankers and the Borders are not protected by the Soldiers.

themba - 5 August 2014

Could not agree with you more @ themba. The sorry state of affairs in Zimbabwe can be easily traced to the stupidity of having pple run entities because of their loyalty to one man and not to the country. A lot of fools are running the mining industry, parastatals and banks. To be honest, most of these Generals do even know how to command properly, let alone run a private company. Zimbabwe cannot, will not get out of this current economic malaise if w continue to bury our heads in the sand and cry foul about sanctions. Sane pple know that even under the most stringent of sanctions Rhodesia had a decent economy because Smith for all his cruelty and disgusting discrimination against black pple, he had economists run the economy and listend to them when they gave their advise. Mugabe knows not to take any idea that suggests that he or his cronnies may be part of the problem.

tino - 5 August 2014

What a Zvimba Circus we are having in this country, full of clowns and tricksters. Zvimba Circus a full time show of clowns, with balloons and animals, including baboons. Its very unfortunate that gymnastic skills on Trampette and Tumblin are still being done by the same old men and women, and the skills are also ancient. The shows are no longer making money because everyone has seen the same tricks and same animals for 34 years, even the lions are now toothless. lol

themba - 5 August 2014

@TINO. You forgo to mention one thing, that Mugabe knows it all and no-one is more qualified than him. The whole world , can not advise him, rather he can tell the whole world to learn from him. That is the problem, who is the master and who is the servant. Mugabe is supposed to be our servant, but he thinks we are his slaves and should be thankful of having him as our leader.

themba - 5 August 2014

The case of a stolen election will forever be relevant because it has caused untold suffering among the people.It is this sanctions false outcry that has no relevance at all in Zimbabwe.Muzvinavhu is just a self-deceiving idiot who thinks he can continue to fool people with his useless master's empty sanctions cry.Your ZANU PF party rigged the election but has no clue whatsoever how to run Zimbabwe's economy.

KWASAKWASA - 6 August 2014

'' However, Bimha insisted that Mugabe is fully aware of the dire state of Zimbabwe's economy. He said the president had even asked him to compile a comprehensive report on the state of industry with a view to finding solutions to the constraints that the private sector is facing. “He (President Mugabe) said we want to know what is happening to industry, sector- by-sector, we want to know the constraints industry is facing and what government can do to assist,” said Bimha. Bimha also said government had set up two advisory committees, one on ease-of-doing business and another on imports, to help craft solutions to the country's economic woes.'' Is this not the same Bimha who was hallucinating at the same meeting when he sad RBZ and IDC (both dead institutions ) have been mandated to capitalize distressed companies. Where do we get these ministers from?????????????

Ndini uya - 6 August 2014

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GALLERYCARTRIDGES - 6 August 2014

Of course Mugabe is aware that the economy is fast declining but what can he do himself being the master of destruction? The best he can do is step down but the guy loves power beyond measure.He would rather take Zimbabwe to his grave.

DEKETEKE - 6 August 2014

the said 2 advisory committees are for creating employment for the cronies, not for an idea

masiyambiri - 6 August 2014

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