via Banks facing liquidity crisis since elections | SW Radio Africa by Tichaona Sibanda November 11, 2013
The banking sector in the country is facing severe liquidity problems as the economy has been sliding backwards since the elections in July.
A senior banking official disclosed that close to $1 billion was funneled out of the banking sector to offshore accounts in the run-up to the polls, as political uncertainty gripped the economy.
BancABC chief operating officer Francis Dzanya said the massive movement of money has worsened the liquidity conditions in the market.
‘By the end of June $800 million left the country due to elections,’ Dzanya said.
Just three and a half months after ZANU PF’s ‘overwhelming victory’ in the July elections, the Zimbabwean economy has slowed almost to a halt, according to businessman Charlton Hwende.
Hwende told SW Radio Africa that people have no trust in ZANU PF and so were forced to move their money to safe banks outside the country. The businessman said he also lost money when his foreign currency account was raided by the Reserve bank before the 2008 elections.
‘I’m a victim of that and I wouldn’t want to experience it again, so I sympathize with people who moved their cash somewhere else because you never know what this ZANU PF government will do with your money,’ he said.
Economist Bekithemba Mhlanga told us recently that the economy has remained stagnant because of poor politics that emerged from the disputed elections.
‘An economy will never thrive under an authoritarian leadership that is well known for its financial mismanagement. There is also the issue of poor infrastructure and bad policies, all these act as catalysts in slowing down the economy,’ said Mhlanga.