Source: ‘Restore investor confidence’ – NewsDay Zimbabwe November 16, 2017
ECONOMISTS have called for the restoration of confidence in the economy after the military stepped in yesterday to arrest the deteriorating social and economic conditions.
BY TATIRA ZWINOIRA
Economist Prosper Chitambara told NewsDay that whatever the outcome of yesterday’s events, there was need for a restoration of confidence in the economy.
“I think number one, there are still a lot of uncertainties. So it is not yet clear what is going to happen. So we are also anxiously waiting to find the way forward. I think the way forward will then determine the course which our economy will probably take. But, of course, uncertainties are not good for any economy, so the sooner we come to some sort of resolution, the better,” he said.
“We need to deal with the issue of confidence because if we do not, this will further erode the confidence.”
Economist John Robertson said that whatever came out of yesterday’s events, a new government needed to come out, which could work with the private sector.
“What we are looking for is a new government and the statements from the [Zimbabwe Defence Forces] general were along the lines of that free and fair elections are to be held. If, from that, we get a new government which is not a military government and is determined to change the policies, then we have a very good prospect of seeing economic revival from different policies,” he said.
“If the government remains tied to the existing policies, then we will not get a new government because it is the policies that are doing the damage.”
Zimbabwe has been sliding into recession with foreign currency shortages singled out as one of the biggest threats to the growth of businesses.
The cash shortage has failed to subside despite the injection of bond notes into the economy.
Financial expert Persistence Gwanyanya said the political environment affects what happens in the financial system.
“What is important to observe in this whole thing seems to me that it is going to be peaceful and is going to usher in a new environment which I think is going to be favourable for investment,” he said.
It was business as usual in the central business district with banks and supermarkets open despite the heavy presence of military officers.
Civilians continued with their day-to-day business, but remained tense over the unfolding events.
The benchmark industrial index was 1,28% down to 527,27 weighed down by losses in BAT, Innscor, PPC, Zimre Holdings Limited and Edgars.
The mining index was unchanged at 138,12. Daily turnover was $13 677 213,11 down from
$15 783 057 realised on Tuesday.
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