Foreboding anxiety fills Zimbabweans

via Foreboding anxiety fills Zimbabweans. 16 June 2014 NEWSDAY  Editorial

ZIMBABWE’s economic outlook is spiraling downward in a deflationary vicious circle that is wrecking any chance of resurgence.

NEWSDAY EDITORIAL

Despite a vociferously proclaimed by President Robert Mugabe’s government, primary surplus, the economic outlook remains subdued and gloomy with the World Bank lowering Zimbabwe’s growth projections to 2% this year from 3% it had forecasted in April.

With unemployment hitting new highs, government has signaled a strong possibility of it failing to pay its 230 000-strong workforce timeously until December as the effects of a failing economy continues to bite. Regrettably, Zanu PF is majoring on trivial over who will succeed 90-year-old Mugabe.

Finance minister Patrick Chinamasa’s engagements with multi-lateral lenders have yielded nothing much putting Zimbabwe further into the economic quagmire as deflation and rising expenditures are cutting at what little available income is left.

Besides, Mugabe continues to gallivant on trips that do not necessarily benefit Zimbabwe. Although, Mugabe recently denied the growing unemployment rate it is clear that life is getting more and more expensive, as prices of consumables keep rising, and incomes keep shrinking. The situation belies the shrinking of gross domestic product and the inability of the economy to shirk off the crisis and rebound, in the near future.

It is imperative that Mugabe widen out for the benefit of citizens. He should understand the fact that incomes are dropping, while the level of personal debt remains at the same level means that homes and firms are unable to meet payments, causing shut downs and further unemployment, fueling an endless vicious circle. Last year, Zanu PF promised it would create value of $7,3 billion from the indigenisation of 1 138 companies across 14 key sectors of the economy.

The party aimed to generate over $1,8 trillion created from the idle value of empowerment assets unlocked from parastatals, local authorities and mineral rights.

It said its various initiatives would create 2 265 million jobs across all economic sectors and “contribute to export earnings, food security and to the fiscus among many other benefits including urban housing, and construction on peri-urban farms acquired during the land reform exercise”. But 10 months later nothing seems to be moving leaving many unanswered questions. Growing political anxiety fills Zimbabwe with foreboding.

It is frightful that government appears clueless as evidenced by contradicting policy statements, especially on indigenisation –the prize of factional fighting in Zanu PF that has spilled into government.

It is compelling that Zanu PF must recognise (though belatedly) the scale of the economic crisis and an attempt at fiscal stimulus to finance infrastructure investment. It is pertinent to note the policy can take malevolent as well as benevolent forms.

There is no doubt that politicians, advised by deranged and culpable economists, will hasten, and intensify destructive economic policies to satisfy their egos. Suffice to say, it is those policies that will prolong and deepen the economic crisis.

Unless and until Mugabe gets real, and face reality economic prospects will remain bleak. It is therefore time for Zanu PF to stop blaming the victims – citizens or private sector for financial crisis authored by Mugabe’s party.

It’s time now to address the solution subordination of the economy to the interests of the citizenry and policies for employment creation. Only jobs can generate the income needed to revive the economy, to pay down private debts.

So if Mugabe wants to sleep at night he should do so by investing in the jobs needed to restore prosperity and stability as the private sector cannot. Only then will Zimbabwe be able to look forward, hopefully. Mugabe must not choose to be wrongheaded about causes of the economic meltdown, and therefore solutions.

COMMENTS

WORDPRESS: 10
  • comment-avatar
    zanupf fear me 8 years ago

    You will one day regret not heeding me. Soon there will be martial law and 6 to 6 curfew as the hoc junta steps in and the likes of muroyi mujuru mdara didymus and this clique are put to the sword by mnangagwa. Stock up now with these but I fear 90 % anti-zanoids sadly can’t afford the survival kit. Stock up now……candles matches condoms boiled sweets maputi kapenta flour cheap tinned food old newspapers for toilet buckets mineral water or purification pills paraffin peyrol diesel chibuku pads . What items have I missed out ?? The broadband and mobile networks will be closed by hoc as well as airports border posts. There will sadly be blood letting.

    • comment-avatar
      JOHNSON 8 years ago

      Stop scaring us. If you know about the junta’s plans then Mugabe himself must know more about it. Can he wait to be put to the sword by those you say they intend to do so? Will he just be a sitting duck? How can he let such a thing happen? Can it happen? Can’t something…anything be done to preempt such a gory eventuality. The eventuality must NOT happen. There will be WAR.

  • comment-avatar
    Insider 8 years ago

    Ngwenya will make his move soon, then God help Zimbabwe

  • comment-avatar
    Moses 8 years ago

    Mugabe is totally oblivious to the situation in general and the plight of the nation . He is however fully aware of the plans for militarisation and is complicit in the plot for Mnangagwa and the military hierarchy waiting in the wings for his signal once his bolthole for a safe and secure ” retirement” is ready. The countdown has begun, December may be the trigger

    • comment-avatar

      None of these plans will materialise. The Almighty, Elohim is in charge in this world and in Zimbabwe. He is the Lord of Lords. He will laugh at them. We are not going to be intimidated anymore here in Zimbabwe. There is no need for stocking up anything.

  • comment-avatar

    None of these plans will materialise. The Almighty, Elohim is in charge in this world and in Zimbabwe. He is the Lord of Lords. He will laugh at them. We are not going to be intimidated anymore here in Zimbabwe. There is no need for stocking up anything.

  • comment-avatar
    Mlimo 8 years ago

    Wait till the pay stops then the army will go wild . Zimbabwe will totally collapse. Become like Somalia with gangs riding around shooting and pillaging can’t wait.

  • comment-avatar
    Bloody agent 8 years ago

    you took the farms comrades, now you have to deal with the fallout.

  • comment-avatar
    nyoni 8 years ago

    Mugabe has never had any intention to move Zimbabwe forward. He simply took it back to prior 1890. Now he is happy to start again.

  • comment-avatar
    Swagman 8 years ago

    I foresee an end year Revolt by the unpaid Military,
    led by the ‘Crocodile’, whether Mugabe agrees or not.
    I also see a State of Emergency declared, and the
    general populace uprising.

    Thereafter I predict a Tribal Cleansing, the advance
    of the UN Peacekeepers, Civil War and Martial Law.
    I also see Mugarbage and his High Command on a
    flight to The Hague.

    Lives will be lost, many lives, but Zimbabwe will be
    Free of the Devils, at last!