via Zanu PF is it’s own worst enemy – DailyNews Live 13 MAY 2014
From the beginning, it was clear steering the economy was going to be a tall order for Zanu PF.
And hitting the ground running was essential if the ruling party was to get the buy-in from the population.
It took Finance minister Patrick Chinamasa months to put his budget together — the reason, there was no money in the kitty.
When he finally presented the budget, he admitted he had done to fulfil a statutory requirement, that a budget had to be in place.
Analysing the spending plan, it was clear key areas that needed to ride herd on the economy — mining and industry — did not get the funds needed to revive and propel them to commanding positions.
So too were social services grossly underfunded — they continue to deteriorate. The Zimbabwean economy, which bottomed out during 2008 was only revived after adopting the multi-currency system.
Despite election promises to grow the economy by 6,6 percent and create 2,2 million jobs, poor indigenisation policies which require investors to cede 51 percent shareholding to locals, have scared away investors.
Meanwhile, the local industry is unable to compete with imported products, and has continued to shut down and shed workers.
The ruling party’s ZimAsset, a policy blueprint which is supposed to drive the revival of the economy has been described as a “pie in the sky” and requires a massive $27 billion to be operationalised.
The economy is now in deflation — a signal the economy is shutting down.
Government has sought to borrow $4 billion to fund its recurrent budget, an idea which even their erstwhile friends the Chinese have rejected on grounds it does not fund national budgets.
ZimAsset also says the country will borrow money from the Brics countries — Brazil, Russia, India, China and South Africa, all of which have their own problems. Brazil is currently struggling to finish stadia to host the World Cup next month.
Russia has burnt its fingers in Ukraine and faces American and European sanctions. India has never been close to Zimbabwe. China has made clear its stance and South Africa stopped short of giving the country money during the Government of National Unity era.
The Bretton Woods institutions have ruled out any new funding unless a number of conditions are met, including reducing the civil service wage bill, strengthening the banking sector and paying back the $6 billion debt.
The Zanu PF government has of late been talking about mortgaging the country’s mineral resources to get funding. This is a desperate move that would sell the “family jewels.”
Our children and great, great grandchildren will want to run this country in their own way.
Should we limit their options because this generation tied them to a certain way of thinking?
We don’t think so.
COMMENTS
Is this paper waking up ? Good points.
Only solution – get rid of Zanu PF
Anybody who lends money to ZANU deserves not to be repaid. A future government should insist that all debts incurred by this one be dishonoured
get rid f these thieving thugs and find the LOOT
Chavakadya chomuka.
Lend @your own risk. If you lend what would be your objective?
Bottomless pit….revolving door. Lending to crocodiles. do what needs to be done and save us this avoidable disaster. ZANU PF know what to…but they also know that doing it would mean they lose their rights to looting and also lose support of the dimwits and thieves who have been propping them for a while now. As Newton says in his famous law….you can’t get away with anything …some time down the line you pay big time. There is nothing for FREEE Mandela…Even the ZANU PF supporters who have thrived on ‘free gifts’ have finally discovered that they pay for these a thousand fold at the convenient time of course. Nothing for mahala. Even chickens finally come home to roost…even the rooster must come and roost. If visitors come the rooster for breakfast!!! Kikikikiikiki. No NIGHT without END! Goodnight Flight ZING! ZING! SING!
imi oye mwari ihwaiwo munamato wangu , zanu yatiuraya kuno todawo yatinoti change even within bato racho , Lord can’t u see these pipo are destroying our awakening economy , please get into their senses vaisewo mitemo inoita investors dziuye big time please.
Why not get rid of these thugs/looters.
“Why not get rid of these thugs/looters.”
It’s easier said than done. Look what happened to the Syrians when they tried to get rid of Assad. The Zim military have helicopters too.
Haaaa, haaa,… What happened to the Zanu pf/Mugabe mandra: ‘Zimbabwe will never be a colony again!’
What a sure way of being ‘not a colony again’ but rather a slave of others countries. Those who know agrees with me that there is a big-big difference btwn colonialism & slavery.
What Mugabe & his Zanu pf has done is reducing Zim to enslavement – especially the next few generations. For most of our generation, of course, thanx to colonial system and colonial education, we can at least avoid or minimize Chinese enslavement one way or another. I don’t see it in the generation born & bred under Mugabe error & immediately after.