Zimbabwe will soon run out of money: Baz

via Zimbabwe will soon run out of money: Baz – DailyNews Live 5 August 2014

HARARE – Bankers Association of Zimbabwe (Baz) has warned that Zimbabwe will soon run out of money to sustain imports.

Joseph Mverecha, Agribank divisional director, speaking on behalf of Baz president Sam Malaba at the Gweru Agricultural Show business conference last week,  said Zimbabwe’s depressed economic performance was ominous.

“The trade deficit that we are experiencing, sooner or later, we will run out of money to finance it,” Mverecha said.

He said since 2010, Zimbabwe’s import bill had ballooned from $1,5 billion to about $6 billion in 2014.

“Since dollarisation, our current account has drastically increased and at some stage we will fail to pay for those imports,” Mverecha said. He predicted that the country would witness a decline in imports soon.

The influx of imports into the economy has been met by insignificant exports which are largely in raw form, hence noncompetitive on the international market.

Imports in Zimbabwe increased to $528,18  million in June of 2014 from $510 million in May of 2014.

Mverecha said Zimbabwe needed fresh money to shore up the economy.

“We need fresh capital into the economy,” he said.

Zimbabwe has failed to attract the much-needed foreign direct investment (FDI) due to a cocktail of government policies hostile to investors, chief among them the Indigenisation and Economic Empowerment Act, which requires foreign firms to cede 51 percent to locals.

COMMENTS

WORDPRESS: 22
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    Hapana dambudziko – tine mari zakawanda kuSingapore!
    B&G.

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    Charles Frizell 7 years ago

    When you deliberately destroy the economy to cling to power and stay out of jail, that is what happens. Surprise, surprise!

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    revenger-avenger 7 years ago

    The final countdown

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    bam bam 7 years ago

    Nobody can invest in a country when it is being run by thieves and criminals who have have stolen the peoples vote and now you will see what happens next

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    Umwrong 7 years ago

    I would personally finance a group putting together and re-establishing the Rhodesian Front party.

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      Umwrong we cannot live in the past. We must go forward as Zimbabwe and hopefully without ZPF. Taking us backwards solves nothing. Lets look forward.

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        Umwrong 7 years ago

        Then abandon Zimbabwe — as both a failed kingdom and republic — and go to something that worked. Take away the racism from Rhodesia and you have a first world country.

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    tongai tione

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    Ferris 7 years ago

    Ingazvakaoma

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    Truly, to those of us that are the church in Zimbabwe we must know that this financial meltdown is a judgment. We pray and we trust. And for ZPF they must know that their sins are catching up with them just like they do for all of us who refuse to repent and turn from wicked and evil ways. No repentance! No restoration! Anyone with an iota of common sense and decency in ZPF should know that the mudhara’s time is up. He needs to be made to step down and retire quietly. They have dug their own very deep dark pit and are falling into it.

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    ZIMASSET I am told has been implemented and the economy will be ontrack in no (african) time.!! Just bear with zanupf and the mugboon all will be ok because they say so.

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    this is what China wants, close down your industry, buy cheap substandard goods from China and in turn they take our raw materials. Educating a Zimababwean is a waste of time and resources.

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    William Doctor 7 years ago

    You want to steal assets comrades [under ‘indiginisation’] – then very soon there will be no assets to steal.

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    There is no zim Dollar soon there will be no us Dollar. What happens when a country runs out of any currency? Even in world war 2 Germany never ran out of money and that was a cock up. what we are seeing in Zimbabwe is a country being systematically destroyed by its own government. It’s just crazy

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    Charles Frizell 7 years ago

    Well, you see . . . If you have no exports and continue to import, you will run out of money. Very logical

    Even if you have exports, if imports exceed imports, you will run out of money

    That’s why we had Import Licenses in the Rhodesia era. We still had them after 1980, but then they were corruptly bought and sold.

    Destroying the economy (land grab, indigenisation) had “unitended consequences” which anyone with half a brain could have forseen. Unfortunately, those who think they own the country do not posses even half a brain. I think Hunzvi classified Joyce Mujuru as 99% mentally disabled. Wow!

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    blueStar 7 years ago

    Zimbabwe will soon run out of money… but not Mugabe!

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    Petal 7 years ago

    “Mverecha said Zimbabwe needed fresh money to shore up the economy” oh oh oh “Zimbabwe needed fresh money to make sure the thieving scumbags flitter and flutter around to their hospitals in Singapore and shop for Gucci products”!

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    JUDGMENT!!!!!!!!!!!

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    The Billionare Club

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    kataza 7 years ago

    RF govt. ran the country under sanctions and did it well, unfortunately it was racist…… ZPF under personal and targeted sanctions have raped the country dry… unfortunately it is also racist

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    jkaseke 7 years ago

    BAZ just wants to create alarm and despondency. A lot has been said about Zim economy meltdown, however, we still soldier on despite all the negative economic outlook.

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    I wonder what l am going to tell my kids if they ask for money and especially when l tell them that l don’t have and they ask me to go to the atm