Zim must be sincere on debt clearance

HARARE - President Robert Mugabe’s government is only left with a few days before it settled its $1,8 billion debt owed to multilateral institutions and we are all waiting — with bated breath — if the cash-strapped administration will default again on its promises.History has shown that Zimbabwe defaulted on its International Monetary Fund (IMF) obligations in 2001 and since then the country has struggled to service its external debt which has now ballooned to over $10 billion. 

However, what is interesting is that, despite its failure to pay its bloated civil service wage bill on time, the government made a commitment to pay the principal debt of $1,8 billion to IMF, the World Bank and the African Development Bank by April this year.

We applaud such bravado by the Zanu PF-led administration to clear its arrears and it must now prove to all and sundry that they are really committed to reform by paying back the debt as promised.

Research has shown that international re-engagement efforts are based on trust, honesty and the fulfilment of promises.

If Zimbabwe fails to deliver its commitment next month, then it would be very difficult for anyone to take us seriously.

We simply need to repay our debts not only for the country to access new capital but also to help companies to secure offshore loans at reduced rates.

As it stands, due to the country’s high political risk profile, companies are finding it difficult to retool as there are no cheap loans available for them.

Zimbabwe is too rich to fail to pay its arrears, but thanks to mismanagement, corruption, unbridled greed and excessive factionalism the country — blessed with abundant platinum, gold, diamonds, chrome and copper among others — is struggling with repaying a paltry $10 billion.

The country has immense potential to become an economic hub in southern Africa as we have all the resources and qualified manpower to take Zimbabwe forward.

However, our main problem lies with the Mugabe-led administration, which has plundered this country at the expense of the population.

It is sad that for a nation which boasts of a high literacy rate in Africa, Zimbabwe has no health and social services systems to write home about.

We still have people dying in their hundreds due to medieval diseases such as cholera, malaria and dysentery as a result of government’s failure to invest in healthcare infrastructure, yet our so-called leaders have the temerity to go and seek medical attention in India and Singapore.

We must all wake up as a nation and demand new leaders who have the people’s needs at heart.

Comments (2)

Let the baker eat what he has baked, politicians should only utilise what they themselves have created, in doing so they will see to it their services and facilities are up to scratch. Pay Gideon Gono a pension exclusively in Zim Dollars, the minister and cabinet too should exclusively make use of our health system and so on. Also if ZanuPF honour their debt they will lose the support of the bloated civil service whose support they have received in exchange for jobs even now they chose to pay selectively the police and army

Nooshie - 4 March 2016

Scholars were talking about IQ, emotional IQ and possibly a few others. Assuming there was a Financial IQ how would ZanuPF fare. A child seeing its parent drawing money from a bank has the idea that the cash comes from an endless supply. Put an age on ZanuPF's Financial Intelligence when they put 80% of Agriculture out of business replacing much of commercial farming with subsistence farming. Have the department of Trades figures ever even been glanced at while promoting Indigenisation and while they barely look at the Trade figures do they also barely look at the Graduate Statistics when "considering" Indigenisation. Someone please apply an age to both their emotional and financial intelligence and state "why".

Nooshie - 8 March 2016

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