Zimbabwe Economy Comatose – Tendai Biti

via Tendai Biti Says Zimbabwe Economy in Structural Comatose by Blessing  Zulu 23.04.2014 VOAZimbabwe

Former Finance Minister Tendai Biti has warned that Zimbabwe is entering a period of sustained economic recession as the economy is now in a “structural comatose.”

Responding to remarks by Finance Minister Patrick Chinamasa that government is ready to work on a new indigenization model that will allow some foreigners to control more than a 51 percent stake in companies, Biti said the economy might take more than a decade to fix.

Zimbabwe’s economy has been on a downturn for over a decade, with most people living below the poverty line and firms either downsizing or pulling down the shutters.

Zimbabwe has for the past two months recorded deflation in what analysts deemed a further danger sign for the struggling economy.

Economists say the indigenization law and policy inconsistencies have resulted in Zimbabwe failing to attract the much-needed foreign investment.

But while easing the empowerment law, Chinamasa said government will not amend it but allow for flexibility in certain sectors.

Indigenization Minister Francis Nhema is expected shortly to table before cabinet plans to define thresholds and timelines for foreign-owned companies to comply with the empowerment law.

Chinamasa indicated that government will for now let foreigners keep a majority stake in banks as locals have no capital to buy shares.

 

COMMENTS

WORDPRESS: 5
  • comment-avatar

    WHAT A CIRCUS ,LETS SEE WHAT TRANSPIRES IN THE NEXT FEW MONTHS ,I DONT THINK GOVERNMENT WILL BE IN A POSITION TO DETERMINE ANYTHING.THERE WILL BE NO INVESTMENT UNTIL THE RIGHT CHOICES ARE MADE.

  • comment-avatar

    WHAT A CIRCUS ,LETS SEE WHAT TRANSPIRES IN THE NEXT FEW MONTHS ,I DONT THINK GOVERNMENT WILL BE IN A POSITION TO DETERMINE ANYTHING.THERE WILL BE NO INVESTMENT UNTIL THE RIGHT CHOICES ARE MADE.AND THE GOVERNMENT DOES NOT WANT TO MAKE THOSE CHOICES BECAUSE IT DOES NOT BENEFIT THEM.

  • comment-avatar
    bruce koffe 8 years ago

    What sort of policy is that, which is formulated without research on the impact it would have on the very people its supposed to help. The policy was meant to empower, but it even took the jobs that was the only survival means of the the people. Zimbabwe is not a lab for Mugabe and his Zanu PF scientist of doom.

  • comment-avatar
    Mandy 8 years ago

    Tendai Biti the issue of the Zimbabwe economy being comatose is pretty obvious and it has been for the past few months. The question is so what. You and your gang need to articulate some kind of direction otherwise people will right you off as one of the spectators in the crowd. Shouting your voice hoarse on something that even a common man can see is not leadership. People have said that you are an anarchist but I beginning to think that you are also a sadist who lacks any form of compassion for the people. How does someone who is pretending on leadership stand on a pedestal just to release wind from your mouth like that. I am ashamed of you.

    • comment-avatar
      Nintalan 8 years ago

      I think you are a bit harsh on Biti Mandy. Firstly Biti did show leadership whilst he was minister of finance, and is generally considered to have done well in trying circumstances. Secondly his “gang” did articulate the financial direction they wanted the country to take during the election, but it was rejected. Thirdly there is no democracy in the world where the political opposition is expected to provide the government with direction. Biti and his “gang” tried to provide direction to government during the GNU and look where it got them.