Mzembi: Foolish for Zim to reject Rand

via Mzembi: Foolish for Zim to reject Rand – NewZimbabwe 28/12/2015

TOURISM and Hospitality industry minister Walter Mzembi says Zimbabwe is losing millions of dollars in revenue by abandoning the depreciating South African rand.

The South African rand has had a miserable 2015, sliding more than 25 percent against the US greenback.

A major commodities exporter, South Africa has been hit by the decline in the prices of coal, gold and iron on the back of falling Chinese demand and oversupply.

The ailing SA currency is now being rejected by the Zimbabwean shops.

The development mirrors rejection of the Zimbabwe dollar which government eventually dumped at the end of 2008 when it had become virtually worthless.

The local sector has also started rejecting the rand.

But addressing journalists in Harare recently, minister Mzembi said it was unwise for Zimbabwe – a country which does not have its own currency – to shun the SA rand.

He said government should rather take advantage of the depreciating SA currency by offering incentives on rand transactions to boost the country’s ailing economy.

Mzembi said his sector is willing to accept the rand and attract more tourists from South Africa who have stopped visiting Zimbabwe because of the rejection of their currency by the local market.

“We will talk to them (South Africa) and say your greatest prospect for hedging this currency which is depreciating daily, is to make Zimbabwe productive …

“… and, to the extent that we are 70% of your market in terms of exports, we are urging you now to start accepting your own currency, so you make us strong and we make your currency strong,” he said.

COMMENTS

WORDPRESS: 5
  • comment-avatar
    Roberta Mugarbage 6 years ago

    Amazing how almost all African countries after independance fall into the same snare of printing money to counteract excessive government spending. History relates tales of hyperinflation dating back to the old Greek. We seem to learn nothing, even if it happens on our doorstep.
    Inflation of 30% in one year, is that Zimbabwe 1992 revisited?

  • comment-avatar
    Nyoni 6 years ago

    We should be helping and working together as one not against each other. WE ARE BROTHERS AFTER ALL.

  • comment-avatar
    Tjingababili 6 years ago

    IT WOULD BE STUPID ONDEED TO!!

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    jocob 5 years ago

    truly the zimbabwean government doesn’t care about its people they only care about then selves rejecting the rand make the matters worse in the country ppel are suffering and they dont care only making false speeches ruling diesnt mean you own the country but look after yo pple…South Africa is willing to help and one of our biggest exporter to save hunger on pple use the currency and pple will survive the econonmic downfall

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    Yaa you know what’ these cabinet ministers are rich with the us dollars in their houses they don’t care about people ‘s sufferings and they are taking advantage of the old president. How can a country use bond money it means now we are going back to bearer chqs it doesn’t make any sense bvunzai va Gono kuti zvimapepa izvozvo zvakauraya economy yenyika sei do you think investers are going to come munonyepa thing guys you are now mature enough that why paster mawarire vakajamuka. Muzembi is right .poor zimbabwean millionares musadaro