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Nicole Hondo Correspondent
Following the announcement by Government that it would, in the next two months, introduce bond notes to ease cash shortages, opposition parties, led by MDC-T leader Morgan Tsvangirai, have predictably rushed to oppose the move without bothering to analyse the pros and cons of the development.
In keeping with his open mouth, shut mind policy, Tsvangirai threatened to mobilise demonstrations against the introduction of bond notes. It is telling that in his statement to the media, Tsvangirai did not give a single economic reason for opposing the introduction of bond notes, save for the usual rhetoric that Zanu-PF has failed, blah, blah. What is obvious is that Tsvangirai and other opposition parties are just opposing for the sake of opposing, mere rebels without a cause.
When Zimbabwe started experiencing cash shortages due to a combination of various factors, opposition parties and their functionaries celebrated, praying that this was the end of Zanu-PF and its popularity. Their fervent hope was that the situation would remain and they would get a platform to hinge their pitiful election campaigns.
So it comes as no surprise that these parties are furious at the prospect of Government having found a viable solution to the challenge of cash shortages that resulted in long queues at most financial institutions. Opposition parties are furious because they were not part of the process and do not want to see Government turning around the economy as this would put to shame their claims that Zanu-PF is clueless and they are the only ones that can unlock the economy.
Theirs is a hollow protest with no sound footing.
Contrary to the lies being peddled by Tsvangirai and company that bond notes would be worthless paper, it was clearly explained that their value would come from a US$200 million bond facility from the Afreximbank. Under the facility, the Reserve Bank of Zimbabwe (RBZ) cannot produce more notes or coins than the guaranteed US$200 million.
This puts paid to predictions by some armchair critics that Government would print excess notes and plunge the country into further chaos. On why Government did not just release the US$200 million onto the market instead of the bond notes, RBZ Governor Dr John Mangudya explained that if that was done, the US dollars would still leave the country, thereby maintaining the frustrating cash shortages.
One wonders why opposition parties have rushed to conclude that ordinary citizens would have difficulty in transacting using bond notes when captains of industry have welcomed their introduction.
The Confederation of Zimbabwe Industries (CZI) president, Busisa Moyo, urged Zimbabweans to embrace the proposed bond notes, saying they will boost internal trade and ease the cash crunch. His sentiments were echoed by Zimbabwe National Chamber of Commerce (ZNCC) chief executive officer, Chris Mugaga, who indicated that Government had consulted the business community on the introduction of bond notes and they were in full support of the move.
And to further reassure concerned citizens, Permanent Secretary in the Ministry of Finance and Economic Development, Willard Manungo assured Gweru residents this week that Government was not reintroducing the Zimbabwe dollar. Speaking during a consultative meeting on the Interim Poverty Reduction Strategy, Manungo highlighted that “the fear that is raised by participants is a situation where their savings and earnings are suddenly overnight; undermined by an instrument (Zimdollar) that has inflationary elements. I would want to reassure you, as the Honourable Patrick Chinamsa has said, and as the Governor of the RBZ has said, we are not ready for a return of the Zimdollar.”
That Tsvangirai and company remain adamant in the face of such clarification betrays the fact that they are using the bond notes issue to further their own agenda, without bothering to understand the modalities first.
Opposing for the sake of opposing will not lead the country anywhere. It is possible that Tsvangirai and his co-conspirators were some of the culprits externalising the US dollar with the intention of destabilising the country’s economy, hence they are crying foul that Government has found a way around it.
What is clear is that Tsvangirai lacks a basic economic understanding, for the operations of the bond notes have been explained in detail and make perfect economic sense.
Certainly, bond notes would be better than the current situation whereby people are failing to access cash, pay bills, pay fees or at times, buy groceries. It would be better to have bond notes that one can transact with than US dollars that one cannot access. On what economic facts is Tsvangirai basing his alarmist claims?
Zimbabweans should keep in mind that scepticism was also expressed at the introduction of bond coins, but this was put to shame as the coins helped ease the crisis of change and wiped away the culture of being given sweets and other unwanted goodies instead of cash in supermarkets. Why should bond notes be any different?
We are not a nation of protestors, that fact is what Tsvangirai and company fail to grasp and why they continue to lose at national polls. Instead of attempting to raise unnecessary dust over measures that are intended to make citizens’ lives easier, Tsvangirai should be preoccupied with coming up with sound economic policies instead of the toyi-toying he is so fond of.
Surely, if the whole MDC-T shadow cabinet can be summoned to sit down and plan the routes for a demonstration against bond notes, they should remain buried deep in the shadows. Zimbabwe needs progressive leaders with a sound economic grasp and ability to come up with out- of- the-box solutions to unique challenges. Toyi-toying drunk shadows led by a leader with a head full of water between the ears have no place in our society.
Online Reporter