Mthuli Ncube must engage more

HARARE - Before and after the announcement of Mthuli Ncube as Finance and Economic Development minister the public was bombarded with a series of articles in the media lauding his educational qualifications and that he was the best man for the job. 

A video of him talking about good and bad money and that he would remove bond notes by December 2018 also went viral on social media.

Fast forward to today, the nation is confused — not so sure if Ncube is the right person for the job.

The economy is in bad shape with no glimmer of light at the end of the tunnel.

Ncube’s ill-timed, reckless utterances and fiscal measures announced in October triggered a run on foreign exchange as everyone wanted to offload the bond notes and electronic balances. 

This resulted in parallel market premiums shooting up, translating into higher prices and inflation. 

Unfortunately, the Finance minister is not taking responsibility for his actions but goes on to expect the general populace to share the pain for problems they did not create. 

Ncube, along with other political leaders continue to live in prosperity yet they are the architects of the current problems. 

They are the policymakers, whose policies and actions led to the huge budget deficit, which was being financed through Treasury Bills (TBs) and creation of money through electronic balances. 

Part of the debt, which was being paid through TBs is debt for tractors and farming equipment, which the same politicians refused to pay for and voted in Parliament for the debt to be assumed by government. 

The list of beneficiaries remains a secret notwithstanding that beneficiaries of equipment are undertaking productive activities with the equipment as well as generating revenue through hiring it out.

It is the poor who are paying for the equipment of the rich and, through Command Agriculture, buy them inputs and at the end of the day a higher producer price is paid for with money that government does not have thus increasing money supply growth and contributing to macroeconomic instability, whose adverse effects are higher on the poor.

Ncube’s two percent tax is also wreaking havoc on the poor. Why do we put so much money in agriculture and get so little revenue? 

Why do commercial farmers not pay tax like any other business entities? 

This is a challenge for Ncube to tax A2 commercial farmers, some of whom also owe power utility Zesa Holdings and the Zimbabwe National Water Authority for electricity and water consumed. Ncube should also engage other stakeholders more than he is doing at the moment.


 

Comments (1)

Our problem as Zimbos we lack accountability at personal level. Even the headline shows the writer is subjective . The truth is we a in a hole we all know we need to get out. We are all in agreement the bond value is what it is with its premium. going forward the citizens should shape their future without blame game. we can not live in denial. Ngozi yakaparwa kuigona kuiripa and agree never again should we go into the hole again with or without the Professor

Nyati - 26 December 2018

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