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Michael Tome
Business Reporter
FISCAL and Monetary authorities should work hard and maintain the economic stability that has been witnessed in the first half of 2021, renowned business strategist Mr Herbert Nkala has said.
Speaking on the sidelines of the FBC Holdings Limited’s headquarters groundbreaking ceremony, group chairman, Mr Nkala indicated that the foreign currency auction system spearheaded by the Reserve Bank of Zimbabwe (RBZ) had worked tremendously well in the first half of this year.
The rate of inflation has been on the decline a development that has been lauded by industrialists and business fraternity as they are now able to plan riding on the obtaining stability of the economy.
Coupled with a good agriculture sector growth, which is anticipated to close the year at 34 percent growth, the favourable economic factors have facilitated a better working environment in the economy.
“I would say the first six months of 2021 is the best our economy has performed in recent years, the currency stability has been major out of the success of the auction system, it has brought about currency stability, predictability and planning for projects.
“So the economy is at its best and we hope that we can continue to maintain those factors that have gotten us to where we are now,” said Mr Nkala.Furthermore, he implored the responsible authorities to continue developing initiatives that ensure encouraging working conditions for business particularly the private sector, citing the decline in issuance of statutory instruments as another contributory factor to the relative stability in the country.
“Like the President always say he wants a private sector driven economy, to achieve that the government should continue to create a conducive environment for the private sector to flourish, like on the policy front we used to have an SI almost every day but it’s almost stable now,” said Mr Nkala.
Effective disbursement of the foreign currency through the RBZ managed weekly auctions has been credited with increased confidence and growth in the local economy.
The weekly foreign currency auction market for both large and small enterprises has to date disbursed US$1, 7 billion for procurement of key raw materials and equipment for productive sectors.
In his 2021 mid-term monetary policy review, RBZ Governor Dr John Mangudya, highlighted that he was sure that the stability of inflation and exchange rate would continue in the outlook period adding that with current policy measures getting desired results, more focus would be directed towards staying on course.
Peter Tanyanyiwa
Online Reporter