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Zimbabwe’s financial sector is not in turmoil as widely rumoured and banks have pledged to work with the new Zanu-PF Government in confronting challenges besetting the economy.In a statement yesterday, the Bankers Association of Zimbabwe expressed satisfaction with the outcome of the harmonised elections, pledging to actively pursue strategies to boost the economy.
This is precisely as it should be. The pledge by BAZ, whose constituency forms the economy’s central nervous system, is a move that should give impetus to efforts by the new Government to prop the economy.
The financial sector plays an integral role in the economy and its stability has a huge bearing on economic growth.
This country boasts one of the most formidable banking sectors in the region.
In the recent harmonised elections, Zanu-PF trounced the MDC-T. President Mugabe, who was popularly elected to continue leading the country, is expected to announce a new Cabinet soon once he is sworn in.
“The Bankers Association of Zimbabwe wishes to congratulate His Excellency, President Robert Gabriel Mugabe on his recent successful re-election as the President of the Republic of Zimbabwe.
“As an organisation representing the banking industry, we are unequivocally committed to working with the new dispensation in collectively addressing the various economic challenges facing our country,” BAZ said yesterday.
This is a progressive statement.
It dispels pronouncements by prophets of doom that the banking sector was at sixes and sevens after the elections. Such rumours are retrogresive and energy sapping but BAZ and other well-meaning business representatives are not perturbed.
Therefore, the vote of confidence registered by the bankers sends a word that Zimbabwe’s economic machinery is ready to roll and will not heed retrogressive forces.
The peace that prevailed before and after the elections, as noted by BAZ, is a major currency that lays the foundation for sustainable economic revival. Indeed, Zimbabweans have demonstrated the maturity that bodes well for national development.
The country now needs to get down to business and ensure the economy continues on the growth trajectory that began four years ago.
The financial sector should play a key role and we have no reason to doubt that banks will lend to industry and to small businesses at realistic interest rates.
Previously, they have not taken heed of the call to reduce lending rates, giving their own reasons caused by the liquidity challenges that have beset the country for some time now. However, we want to believe that this is an issue that can be resolved as we take the economy forward.
Banks should also come out in full force to mobilise deposits. Strategies will need to be sought to encourage savings while putting a plug on any run on deposits.
Zimbabwe’s savings culture took a knock in recent years due largely to low disposable income and deflated confidence in the banking sector.
Many have preferred to keep funds in the informal market which is considered “safer” but this needs to change because starving the formal banking system is detrimental to the economy.
Funds deposited in the banks are circulated and invested in productive projects that will benefit the economy through the creation of employment and wealth, among other advantages.
Banks need to continue efforts to lure depositors through programmes and packages that some have already begun to employ. Deliberate efforts toward financing agriculture and the small business sector will be required.
Furthermore, banks will need to think outside the box and spearhead efforts to mobilise funding for productive sectors. Those that have largely been reluctant in this instance will need to pull up their socks and go with the flow.
Zimbabwe’s economy, whose growth was recently projected to slow to 3,4 percent this year, against an initial target of 5 percent, has the potential to turn the tables and achieve even higher growth once all stakeholders pull in the same direction.
We now need to chart the right path for the economy if not for national well-being but to prove to the doomsayers that this country is made of sterner stuff.
Zanu-PF’s vision that the economy will grow by an average 9 percent annually is certainly no fallacy. This feat can be and will be achieved if we apply the required energy and commitment. The party’s manifesto provides the right roadmap to success.
Online Reporter