Munyeza takes govt head-on

HARARE - Prominent businessman Shingi Munyeza has warned the government to reduce its profligate spending and dispose underperforming State-owned enterprises in the wake of current economic challenges and worsening cash shortages.

In a strategy paper dubbed the “10-Point Plan” — which he fashioned from an entrepreneur’s perspective — Munyeza said government must immediately cut its expenditure and live within its means.

“They also need to commercialise State-owned enterprises — major retrenchment is overdue,” he said.

Munyeza’s clarion call comes after the International Monetary Fund (IMF) recently urged the country to implement a comprehensive economic transformation programme, which includes a reduction of government’s wage bill from the current 92 percent to less than 55 percent by 2019.  

President Robert Mugabe’s Zanu PF-led government is struggling to service its bloated civil service wage bill due to

depleting revenue streams, high unemployment rate and massive company closures among other things.

Munyeza, currently running the local Ocean Basket and Mugg & Bean franchises, said it was also important for government to immediately enter into an understanding with business and labour to allow for economic growth.

“There is need to start rand reporting so we begin to adjust correctly to regional parity then eventually move into the Rand Union, competitiveness is key,” he said.

Munyeza also noted that the country must effectively sweat its major assets and get maximum return on investment.

“The land audit, which will result in issuance of 99-year leases make our most valuable resource, land, productive and qualify as security. There is also need to handle all breaches to Bilateral Investment Promotion and Protection Agreement,” he said.

The former African Sun chief executive also highlighted the need to incentivise exporters and revisit the country’s indigenisation law, which compels all foreign-owned businesses to sell off 51 percent of their businesses to black Zimbabweans.

He added that the country must conclude balance of payment support through the present processes with IMF.

“This will ensure working capital requirements. No bond notes!” he said.

Zimbabwe, which owes $1, 8 billion in arrears to the World Bank, IMF and AfDB, has not been able to access much-needed fresh financing from the fund and last year put across an arrears clearance strategy which is considered an important step towards normalising relations with the international financial community.

Comments (13)

Shingi should first of all tell us why he let African Sun (formerly Zimsun) collapse spectacularly like that. His insistence that we should find accommodation in the Rand union raises more questions than answers given that he is known to have interests across the Limpopo. This country may never register any economic growth if we continue to make the mistake of listening to corporate failures like Shingi who continue to believe that anything that comes out the mouths of the Trumps of this world is African states' remedy. Why is he decampaigning the bond note before its introduction in the market. He could be one of the - behind the scenes - benefactors of these tight liquidity conditions.

Respondent - 17 May 2016

I wonder in what capacity is he warning the government? The IMF will always prescribe solutions that impoverish Africans. For example retrenching workers in an economy like this, how do they survive? Does it not reduce potential business for Munyeza's companies that are consumer targeted? kana pasina zvekutaura ngatinyararei Pastor

Mr Chienda - 17 May 2016

You are both entitled to your opinions and comments. We are all entitled to our views and Dr Shingi Munyeza has profered his opinions. Instead of pulling them down, suggest yours!

PM - 17 May 2016

You wanted Shing to run African Sun profitably when everything in the country is dead. How can that be? Only corrupt people are making money in Zim. gtigmnyv

Munhumutemahaanachakanaka - 17 May 2016

what management does shingi know when he ran down hotels and brought nepotism to africa sun,he also advised gono during the hyper inflation era and shonalised all africa sun units in matebeleland

jojo - 17 May 2016

did shingi run down african sun?! i thot he's the one who quickly adopted the 'african' part of the brand when the 'zim' brand was wilting in the heat of zanu mismgt! did his time at african sun not come to an end and he handed over the button & reins? i see the indignation & resentment to voices of reasoning that is associated with entrenched dislike of progressive opinion. its the egocentric and selfish attitude & pursuits of zanu that trashes any differing opinion! strive fled this system and registered his concerns in SA! shingi mutasa placed his HQ in Winsconsin! mutumwa fled to SA; anyone who happen to express opinion(s) is chastised why? are we not robbing ourselves of worthy talent and keeping the chaff in the likes of the ungenges, mpfumiras, dokoras who are either unaware of fraud happening in their ministries or coming up with meaningless pledges? are we not chasing worthwhile enterpreneurship in xchange for vendorprenuership?

SaManyika Chaiye - 17 May 2016

Attention seeking Shingi Munyeza he was the key figure in drafting the indeigenisation paper on tourism, as a matter of fact leases are not bankable why dont advocate for outright ownership, whilst we are at it Shingi spend mos of his time globe trotting Africa and forgot an entire chain of hotels run down, now we continue with these so called Franchises when things are bad how much are we losing in franchise fees, a fish rots from the head and iits the likes of Shingi who continue to want to give optimisim yet they are the ones who messed up 10 point plan my foot

Hungry Lion - 17 May 2016

after a spectacular collapse in business the failed shingi rebrands himself as an alcohol selling priest,he criticises our indeginisation yet he is the one who abused it by fronting for tourvest at wildhorizons,shingi is clueless,under his stewardship occupancies plummeted at africa sun,the hotel got entangled in huge debts,his ten point plan would have counted had he advised that himself and the likes of nigel chanakira,larry mavhima recuse themselves from an executive appointments give their disastrous trail in business

truth - 18 May 2016

does one have to be perfect to express his opion? if thats the case, then none of us should dare open their mouths. i respect Dr. Munyeza coz he has been honest enough to put his opinions on the public domain for scrutiny and it goes without saying that you cannot expect every person to agree. Through his entrepreneurial abilities at least some families are receiving regular incomes. Can not say much about his time at Africa Sun but the fact is, the organisation is still standing and a platform was created for it to continue in business. How many businesses have failed in Zimbabwe and if, as some of you would brand his time as a failure, at least he was man enough to step down and hand the reigns to someone else. I know some of you here will say that he did not step down but was pushed out, still i would say that rather than taking the organisation down with him, he did the graceful thing and stepped down. The same cannot be said about our current government who insist on holding on to power at the detriment of the nation. Kudos Dr. You are a man among men and may your businesses prosper to the shame of your detractors. at least you are not stealing public funds to build your empire.

tbags - 18 May 2016

does one have to be perfect to express his opion? if thats the case, then none of us should dare open their mouths. i respect Dr. Munyeza coz he has been honest enough to put his opinions on the public domain for scrutiny and it goes without saying that you cannot expect every person to agree. Through his entrepreneurial abilities at least some families are receiving regular incomes. Can not say much about his time at Africa Sun but the fact is, the organisation is still standing and a platform was created for it to continue in business. How many businesses have failed in Zimbabwe and if, as some of you would brand his time as a failure, at least he was man enough to step down and hand the reigns to someone else. I know some of you here will say that he did not step down but was pushed out, still i would say that rather than taking the organisation down with him, he did the graceful thing and stepped down. The same cannot be said about our current government who insist on holding on to power at the detriment of the nation. Kudos Dr. You are a man among men and may your businesses prosper to the shame of your detractors. at least you are not stealing public funds to build your empire.

tbags - 18 May 2016

Shingai has expressed his opinion about the way forward. lt is in the public domain, a real man do that. instead of criticising him suggest your solns to the current economic meltdown. to me especially the use of rand is far much better than of bond notes. it will make our economy competitive in terms of tourisms than now. South Africa is our largest trading partner in the world and home to millions of Zimbabwe. lets talk about it.

Robbie - 18 May 2016

I agree with you Robbie. Zimbos were too quick to ditch the Rand as if they have their own currency. Chinya chegurwe rinozvidambura gombo rekusvetuka naro! whilst I understand the emotion that came with the ditching of the rand after it started to deteriorate in a fashion similar to what we have seen in the past, I think we were too radical. There was too much panic. Lets talk to Zuma zvakanaka tiwane mari iyi tirege kunyudzwa muma bond notes.

Mucha Sithole - 19 May 2016

You again are exhibiting the classic problem with Zimbabweans. Rather than talk about the points that Shingi has raised you are criticising him. Mark the man, not the ball. Ndizvo zvakaedzwa na Tafadzwa Musarara. Shingi is NOT the issue here. The issue is our moribund economy. He has given his ideas, what objective thing do you have to say about them. We seriously need to fix this culture we have in Zimbabwe!

Tawaz - 19 May 2016

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