Chronicle Editor
Business Reporter
BULAWAYO businessman, Mr Bulisani Tshuma, has urged the private sector to embrace and adapt to the new policy interventions announced by the Reserve Bank of Zimbabwe saying the measures are geared at uplifting the economy.
Last week monetary authorities raised interest rates from 80 percent to 200 percent to reflect prevailing inflation developments and curbing speculative borrowing as well as a broad money supply.
The rates apply from July 1.
In a recent interview with Business Chronicle, Mr Tshuma, who is a director for Membar Investments, said it was important for the business community to understand the reasons for pegging interest rates at 200 percent.
With that understanding, he said businesspeople would not waste time criticising the development but move swiftly to adjust.
“My take is, the interest rates have been pegged at 200 percent, so how do we adapt to that? We should not waste time crying over the new rates because it’s now a reality,” he said.
“The 200 percent has been set so we really need to see how we adjust, how do we live with the 200 percent.
“As business, we still need to borrow (from banks) but at times we borrow and forget that we need to repay the money and use it for something different. Let’s use the money based on project proposal stipulations. For me, it’s a win-win situation,” he said.
The businessman says there are prospects for growth in Bulawayo but what is key is for the business sector to identify opportunities and pursue them.
Bulawayo-based economic analyst Mr Morris Mpala said people holding on to foreign currency will rush to offload and liquidate their debts.
“What we will witness is people with forex liquidating the money and clearing their debts. The same will happen with stock before the onset of the new measures on July 1,” Mr Mpala said.
He added that businesses will stop offering services on credit and apply cash management, which could present price challenges in the market.
“Once the new measures kick in, it will take time for people to warm up to the new rates. However, that should not be an excuse for people to increase prices of goods and services,” he said.
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