Chinamasa’s finance plan immoral: Biti

via Chinamasa’s finance plan immoral: Biti | The Zimbabwean by Clemence Machadu 25.09.13

Former finance minister, Tendai Biti, has described his successor’s move to securitize the country’s resources for lines of credit as ‘’immoral.’’ The new minister, Patrick Chinamasa, recently appealed to the African Development Bank for technical support to build expertise on how Zimbabwe can leverage its resources to raise foreign capital and access external lines of credit.

“Securitization is immoral in that what is underground, to be used by future generations as well, is now being squandered by the present generations. On paper it can work and has been tried in countries like Angola and South Sudan with hydrocarbons, which are more easily quantifiable and where price discovery is easier.

In countries without oil it has hardly been tried and has not worked,” said Biti. “The truth is any other resource is extremely difficult to quantify and to give a monetary value . How do you quantify gold or platinum underground where there has been no geological study, as in our case? What value do you place – particularly in the context of the present sphere of volatile prices,’’ argued Biti on his Facebook page.

He also emphasised that a huge amount of skill and expertise was required to conclude these transactions. “My greatest fear is that given the absence of capacity in government for this kind of cutting edge skill, Zimbabwe will be exploited by any potential investor, if they are any. More importantly it is difficult to see these deals being liberated from the scourge and cancer of corruption. The bottom line is that in the context of present day Zimbabwe under this regime, securitization is literally selling the country out,’’ said Biti.

Zimbabwe faces a severe liquidity crunch and is failing to get liquidity both locally and internationally because of the current external debt overhang and bad international credit rating. The nation urgently needs finance liquidity to extend to local industries that have closed shop and to boost the capacity and competitiveness of the existing ones. Agriculture too requires huge funding.

 

COMMENTS

WORDPRESS: 30
  • comment-avatar
    kevin 7 years ago

    For those who do not know, this ZPF Govt has no clue how to raise money. Biti is absolutely right, how do you mortgage your minerals when you do not know their value. That is why Zhing Zhong is buying some of these assets for a song.
    They need to work on their policies and improve their relations with those that have $$$$$ and can lend it on better terms.

  • comment-avatar

    I wrote to you honourable tendai not to give the urangatang advice or help in any form,,,

  • comment-avatar
    Diego Zhaba 7 years ago

    They still sing the rhetoric song at the highest level and expect investment to come like manner from heaven. Mugabe and his cabal have no clue on saving the country, yet they claim Zimbabwe will not be a colony again. I’m reminded of the fuel crisis period in 2004 when Mugabe almost gave the entire Mash West to Gaddaffi. Nyika iyi is going takatarisa, look at how the Chinese are quietly plundering the resources. And for whose benefit? – Mugabe’s inner circle.

    Sick and tired of short-shortsightedness.

  • comment-avatar
    Kalusha 7 years ago

    It’s like running away frm lion to a hyena but the end result you would be eaten,china is the hyena taking advantage of a sick animal that is zim,the west lions.zim is becoming a colony of china willingly

  • comment-avatar
    mucha 7 years ago

    Mr Biti should shut up on the solutions to our economic problem because he and his fellow MDC maniacs called for economic sanctions on our country. He is like a mosquito prescribing medicine to a malaria patient.

    • comment-avatar

      @mucha and you thieving looters are retards trying to run an asylum.

      Don’t you know that one mosquito can immobilise many?

      As for sanctions, Ian Smith beat them and Zimbabwe prospered. You ZANU-PF maniacs are so stupid that you think travel restrictions on individuals who have committed crimes against humanity are ‘economic sanctions’.

      How completely stupidly brainwashed can you get!! You are selling out Zimbabwe to China.

      • comment-avatar
        mucha 7 years ago

        The Chinese helped us to defeat the Western imperialists in the 1970-80s with their guns, bombs, ammunition and material support for free and we had abandoned them all along. It is their time to reap where they sow and we can’t be seen glorifying the same Western world that had been plundering our resources for the past two centuries for nothing.

        • comment-avatar

          Small minds think like this. The voice of ZANU PF that has not built anything in 30 years and will build nothing for the next 50 years.

        • comment-avatar
          soothsayer 7 years ago

          Mucha,when is the “reaping where they sow”going to end bearing in mind that your resources are finite? Do you have future generations in mind or you just don’t care? Do not hood-winked to that extend.

      • comment-avatar
        Bhora 7 years ago

        Nzou, you are the retard. Take some time to read ZIDERA and tell me that these are nothing more than restrictive measures on individuals.

        (c) MULTILATERAL FINANCING RESTRICTION- Until the President makes the certification described in subsection (d), and except as may be required to meet basic human needs or for good governance, the Secretary of the Treasury shall instruct the United States executive director to each international financial institution to oppose and vote against–

        (1) any extension by the respective institution of any loan, credit, or guarantee to the Government of Zimbabwe; or

        (2) any cancellation or reduction of indebtedness owed by the Government of Zimbabwe to the United States or any international financial institution.

        For your information, only the last section (Section 6) refers to restrictive measures. The rest relates DIRECTLY to the refusal of any economic lines of credit to the Government of Zimbabwe.

        Biti should shut up because they asked for sanctions. They got them, now they wanted to act as if they could be Zim’s saviours.

    • comment-avatar

      Surely you cant be serious mucha, unless you are a complete retarded idiot and in love with the dog eaters.

    • comment-avatar
      Haruna 7 years ago

      Mucha you are a moron.

      • comment-avatar
        zondi 7 years ago

        That is why you are Haruna, meaning NOTHNG. Don’t use emotions here, say your facts and don’t call me a moron.

        • comment-avatar

          Mucha you are a moron, a liar and a sell out. Please stay in China forever.

    • comment-avatar
      Rudadiso 7 years ago

      Mucha, you must be mentally retarded if you honestly believe that the United States, the super power that chooses to invade countries if it believes its in its interest, imposed sanctions on Zim because the MDC asked them to. If the MDC is as powerful as you say then you ought to worship the ground they walk on.

  • comment-avatar

    .

    Chinamasa is working hard to get Zimbabwe recolonised. Soon Chinese will become the official language. They have started this at Harare International airport so the incoming recolonisers can feel ‘at home’ when they arrive in Zimbabwe. Shona and Ndebele language signs have been replaced with Chinese and English.

    The sooner Zimbabweans answer Robert Mugabe’s call to the nation to learn Chinese, the better for ZANU-PF.

    Keep your eyes open and Look East Zimbabwe…. sit back and watch ZANU-PF hand the nation of Zimbabwe over to China for 20 pieces of silver.

    .

    • comment-avatar
      mucha 7 years ago

      For your own information, I am China now (Nanjing City) and if you knew how developed China is you wouldn’t be hallucinating like that. Be educated Brother/Sister and talk from an informed postion.

  • comment-avatar
    masvukupete 7 years ago

    And I thought kuti the MDC’s manifesto was shredded to pieces by ZPF saying that the FDI is not the solution to our problems. Ikezvi the same ZPF wants to sell our country to try and get the same bad FDI. What a bunch morons we Zimbabweans are. What a big shame.

  • comment-avatar
    Bruce 7 years ago

    Biti is right. Its amazing that he sees deep into financial engineering concepts when our seasoned lawyer Chinamasa see nothing. However the difference between them is that Chinamasa lack foresigth and over simplify the process involved under the influence of greediness and lack of consultation that he will fool the world of investors.

  • comment-avatar

    Thanks Tendai you played the role of a shadow minister of the ministry of finance intelligently.Keep us informed minister!

  • comment-avatar

    Tendai appears to be more at home as a shadow than a real minister. He should not counter everything by saying ‘it can’t’ instead of laying out what ‘can’. Biti must tell us how much FDI he mobilised during his tenure.

  • comment-avatar
    lovejoy 7 years ago

    Mucha learn to listen and reflect.

  • comment-avatar
    Tanda Fire 7 years ago

    Nhaiwe Mucha hindava uri mutengesi akadaro ungati because China helped us so ngavaite zvavanoda with our resouces so were is the issue of helped us.STAY in China wakanyarara kana wapiwa tunonaka idya worega kubvotomoka because uri mombe yakabva kusina uswa why supporting the Chinese in the expense of your relatives here in Zimbabwe

  • comment-avatar
    Tanda Fire 7 years ago

    MR BITI you are right man but you are talking to deaf,dump and blind people

  • comment-avatar
    Bhora 7 years ago

    Mr Biti,how exactly were you going to raise money for the country then? You are talking rat Sh*t coz you werent given the chance to mortgage these resources yourself. Anyway, you are not in office, and you need to deal with it.

  • comment-avatar
    Zvichapera 7 years ago

    I pity people like Mucha who are blindfolded by ignorence. Its this kind of thinking that has got us to where we are now. For some they want to run the economy like the chimurenga. Noble but misplaced.

  • comment-avatar
    jenandebvu 7 years ago

    Bhora wakaremara, if US Gvt does not want with their money, could that be an excuse for mugabe to fail. How many countries are in the world? Iraq and Libya have gone for how long with full fledged sanctions? Have you had about positive BOP? Sell more and buy less from outside and yoou don’t need to borrow. The sense of borrowing comes from over ambitious, corruption and or mismanagement