via Chinamasa off to Washington The Standard September 29, 2013
FINANCE minister, Patrick Chinamasa will this week make his maiden trip to Washington for the annual meetings of the World Bank Group and the International Monetary Fund (IMF), barely a month after taking over the reins at Treasury.
The meetings run from October 11 to 13.
Chinamasa is set to use the meetings to re-engage the multilateral institutions. The country requires lines of credit to reboot the economy which is suffering from liquidity constraints.
However, Reserve Bank of Zimbabwe (RBZ) governor, Gideon Gono would not be part of the delegation, saying yesterday that he was crafting domestic responses to the challenges facing the economy.
Gono said international tasks would be tackled by Chinamasa, while the RBZ team would focus “on home challenges”.
“I would have loved to go but have pressing domestic commitments to do with crafting survival strategies for our sanction-constrained economy,” said Gono.
“There is an SMP [Staff Monitored Programme] that spells out the roadmap for Zimbabwe to qualify for debt relief and other forms of multilateral funding support.”
In June, the IMF approved the supervised economic reform programme for Zimbabwe, as the country re-engages the international community. The SMP runs up to December.
What was needed, Gono said, was to “craft and communicate authoritatively to the world that we are friendly to foreign direct investment, that Zimbabwe will not grab anyone’s business or capital who comes to invest in the country and that the country respects property rights.”
Gono said government has to work flat-out to address the liquidity challenges facing the economy through improved exports, attracting foreign direct investment, diaspora inflows, lines of credit and direct government-to-government grants.
He also said government has to tap into the confidence liquidity; that is, money outside the formal banking channels.
“We need to grow the confidence in our economy and it starts with citizens of that economy. There is a lot that government can and should do to harness liquidity from internal sources,” he said.
Gono said liquidity challenges were fatal for the economy and, “we must not play Russian roulette with our economy by doing anything that worsens our situation on that front”.
He said with expectations from people high, “we have no choice but to be level-headed in our approach to our economic revival while delivering promises made to the people by the ruling Zanu PF”.
“There should be no room for extremism or irrational exuberance in our actions and pronouncements,” he said.
“Business, politics, labour, civil society, NGOs [non- governmental organisations], and the international community should find each other and work together. That is the only formula for success.”
Gono said he would announce his monetary policy statement which was due at the end of July 2013, as soon as Chinamasa had gone through the central bank’s proposals and was satisfied.
COMMENTS
What was needed, Gono said, was to “craft and communicate authoritatively to the world that we are friendly to foreign direct investment, that Zimbabwe will not grab anyone’s business or capital who comes to invest in the country and that the country respects property rights.”
All the aboev are allegic to a Zanu government so we are really screwed up.
Seriously………..These comments by Gono reflect the schizophrenic nature of the zanu ‘people’…….’friendly to FDI….respect property rights’, Dear Lord, based upon this I’d say you Zimbabweans are in for another 5 years of hell.Best of Luck!!!
“What was needed, Gono said, was to “craft and communicate authoritatively to the world that we are friendly to foreign direct investment, that Zimbabwe will not grab anyone’s business or capital who comes to invest in the country and that the country respects property rights.”… he he he… you just can’t make this stuff up!!!
Chinamasa stay home and prepare your farm for the rainy season. America does not and will not welcome you and you will see when you force your way in. You will never be made comfortable and will wish you hadn’t bulldozed your way in. YOU EMBARASS and you want to be embraced and be accommodated. WHY DON’T YOU LOOK EAST EMBECILE?
Problem you cry about sanction yet you can’t counter them shame shame shame
What domestic measure can Gono craft….we ll be using USD for the foreseable future, thus control in USA, the Rand is controlled in South Africa while the Pula is mamipulated in America. So what rethoric is that?
I thot we didnt need these filthy Americans. At least they are now engaging with the most important partners. Is this not another case of flip flopping. I thot our president was the most consistent person ever to grace the face of the earth. Tsvangson always flip flops and Bob doesn’t. How do the rest of the worls take us seriously when we act like this.
this is a joke, protect property rights! ask the dairy farmer in beitrice or another in rusape what has happened with their property rights in the last month or so.
The world regards your economy, government and politics as a complete joke so try not to dignify this chaos and corruption with excuses for the gross mismanagement of the country and the theftt of its resources
The world regards your economy, government and politics as a complete joke so try not to dignify this chaos and corruption with excuses for the gross mismanagement of the country and the theft of its resources. And stop expecting the rest of the world to replace all the stolen money with more for zanu to steal.
Just show you we are a nation run the most confused brothers on Planet Earth. We are the laughing stock of Africa. Chinamasa will once again be exposed when he arrives in the USA. Can’t wait to see Orungatan make a fool of himself.
Are we looking West now?
More lies more deception these lot are all HIV positive. Have you any idea how this wrecks the brain. Look it up on google. It might examine the Zimbabwe situation. Basically even if you are on antiretrovirals your brain is adversely affected. I have the list if HIV infected ministers but good will that do.
Seeing that Chinamasa is also on targeted sanctions, he should be followed all over the place by the American CIA and FBI, in case he starts shopping.
This is NOT a gukurahundi shopping trip, that much he must understand!!
How much of the taxpyers money is he wasting? I’ve heard that the country is already three months late on their monthly reports and baby payments to the IMF that were supposed to start at the beginning of June. How much more can Zim engage these institutions until it starts honoring it’s past commitments? If Zimbabwe cannot be trusted to care about it’s responsibilities to multi-national lending institutions, how can it be trusted to respect it’s responsibilities to individuals, businesses and corporations?
Shame on all preceding comments.