Source: Stabilisation package can be a game-changer – DailyNews Live
STAFF WRITER 14 December 2017
HARARE – African Export-Import Bank (Afreximbank)’s announcement on
Tuesday of a $1,5 billion economic stabilisation package for Zimbabwe can
be a game changer for President Emmerson Mnangagwa’s new government.
Afreximbank said they are to support the stabilisation of the Zimbabwean
economy by providing currency liquidity to avoid bank queues. The injected
funds will also go towards the revival of the productive sector to
stimulate more exports.
Apart from the bail-out being a game changer for his government, the
funds’ injection can also propel Mnangagwa’s political bid for the
presidency in next year’s elections.
The issue of the bank queues has been one of the most pressing economic
and social issues which if immediately addressed will be a plus for
Mnangagwa and his ruling Zanu PF government .
Afreximbank would also be supporting nostro accounts of the different
banks to ensure that those dealing in US dollars have access every time
they needed them to pay for goods.
The funds will also provide investment guarantees for investors, to entice
them come to Zimbabwe.
The good news also coming from Afreximbank is that the $600 million nostro
stabilisation facility extended to Zimbabwe to meet its foreign currency
requirements for productive foreign payments had been finalised.
While Zimbabweans have received the news with hopes of a quick economic
turn over, we hope there will be no misuse of the stabilisation package as
has happened in the past.
In the short term the economic stabilisation package will boost our ailing
economy, but we also need to look at the long-term because Zimbabwe still
needs to repay that money bank to Afreximbank.
There is need for serious accountability and transparency regarding the
terms of the financial package and the country’s eventual liabilities
because if we are not careful we could be mortgaging the future of the
country to debt.
Also given the long-term implications of acquiring foreign financial
support, such deals need to be subjected to rigorous democratic oversight
by various supporting institutions.
The package can restore confidence in the economy and set a good
foundation for attracting both domestic and foreign investment.
Afreximbank’s economic stabilisation package if used wisely can send
positive signals to the rest of the world that Zimbabwe is now a harbour
for business investment.
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