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.
COMMENTS
2008 is almost back for 2014
SUCK YOUR SELFISHNESS AND YOUR BIG STUPID IDEAS. YOU ARE ABSOLUTELY USELESS AND GOOD FOR NOTHING. YOU HAVE DESTROYED A GREAT COUNTRY AND A GREAT NATION. YOU HAVE BEEN GIVEN GOLD WHICH YOU TURNED INTO SOIL. INDIGENISATION MY ASS.GREEDY PIGS, COFFINS HAVE NO POCKETS.
Its true – the economy has come to a standstill. No-one trusts Zanu PF. Its a huge problem for the next 5 years.
GUYS WE HAVE NOT SEEN ANYTHING YET ZANUPF IS MAFIA AT ITS BEST.EVEN GOD HAS CURSED OUR NATION FOR BOB’S SINS.
So these bankers did not invest in their banks and rely on depositors for liquidity, thats why they are sometimes not able to give us our money. Gono forced the banks to have a minimum capitalisation ratio, was this not supposed to be cash equivalent. So the banks are just agents with no cash of their own.
This bank should have anticipated that this customer was one day going to withdraw his funds. Why would one what to keep 900000 million in a bank when investment opportunities are opening up all over the world.
I honestly believe that the idea of the elite benefiting from the programmes is a creation in the minds of those that simply do not understand what indigenisation and economic empowerment is all about, and secondly, this is a trap that has been set up by those outside who really do not want to give up what they have in this country. I cannot believe that the President and cabinet can preside over a situation where they take over all the resources and distribute them among the cabinet ministers or army generals and so on at the total exclusion of ordinary people. If you went to the Ministry of Mines and looked at the number of claims that are in the hands of ordinary people-it is just amazing and I speak from experience of things I have seen on the ground and on paper. There are so many people around the country with claims, mostly small to medium scale mining operators. I am not talking about artisanal miners known as makorokoza here, but we are talking about people with licences, people who have formal claims and are credible. These people are free to invite or partner foreign investor as long as they play by the book. When it comes to land you know very well that in tobacco and cotton farming in the communal areas, the bulk of the land is in the hands of indigenous people but of course, the level of development, and expertise is something that comes with time but we have already seen that in the agricultural sector, particularly in the non-staple food area like tobacco and cotton, farmers have done very well.
The public needs education in terms of what is where, how to access it, what forms should they need fill in, who to see and so on- that is important. If there is need for training, we should provide it so that there is greater understanding of how they can benefit from this wonderful policy. Perhaps we can say that up until now, this has been the missing link because the policy is there and although many people think it is politicized but the reality is that it is not.
Hisexellency – I like your judgement, that the way we are going but this news site is always filled with comments from dissatisfied individuals with an axe to grind. Some of us can not just read their useless hope, we need to tell them until they realise. Somewhere in the future, we will shall find each other, after all Tswangirai is a sell out but Zimbabwean. We shall forgive him.
So what’s your point ? What do you suggest ?
Shebba u only see Tsvangirai as a sell out, but u cant see what th CHineese are doing and who brought them shame fo u who love them at th expense of yo fellow country pple