‘Minerals, bumper harvest to spur economic growth’

Felex Share Senior Reporter
Zimbabwe will continue experiencing steady economic growth buoyed by a successful agricultural season and increased mineral exports, Reserve Bank of Zimbabwe Governor Dr John Mangudya has said.

He said the country would not slide back to the 2008 economic meltdown era as Central Government and monetary authorities had key interventions.

The bumper harvest and key interventions, Dr Mangudya said, would have a knock-on effect on the economy.

He also said the so-called disappearance of large United States dollar denominations — being blown out of proportion by the country’s detractors through the private media — was, in fact, a policy measure.

“We are going forward and how can we go back to 2008 when this year we are expecting a bumper harvest, when the exports are going up?” Dr Mangudya said.

“You are aware that the prices of ferro-chrome have been going up, and that after the five percent export incentive scheme, gold production is going up and that we are expecting a good cotton crop, which is going to be exported.

“We are also going to have a good harvest of tobacco and all of it is exportable and the auction floors are opening on the 15th of March. The money that is coming to buy tobacco and cotton is paid upfront and indications are that we are going forward, in a positive trajectory.”

Zimbabwe expects a bumper harvest from strategic crops planted during the 2016-17 summer season, a move that will see the country achieving food self-sufficiency and do away with maize imports.

The high yields are attributed to increased inputs from Government, chief among them a special maize import substitution programme, popularly known as Command Agriculture.

The rains have also been good this season.

Said Dr Mangudya: “With all this happening, it means those social commentators saying we are sliding back to 2008 have their wishes, not fundamentals on the ground.

“By always giving disparaging comments, we are shooting ourselves in the foot. This time last year we were asking ourselves about how to cross 2016 because there was drought. Government even declared a national disaster because of lack of food and animals were dying. This meant importing food.

But the story is different this year, we have a bumper harvest and for someone to say we are going back to 2008, that’s an insult. Let’s all be positive when it comes to the economy.”

On the so-called disappearance of big denominations of the US dollar from the market, Dr Mangudya said: “Foreign currency does not come here on foot. It comes through nostro accounts.

“It is from the nostro accounts that we withdraw money and put the money in the economy. We are encouraging banks to ensure they bring to Zimbabwe lower denomination values, not to bring more of $50 and $100 notes for purposes of mitigating money laundering.”

He went on: “We are also promoting the use of plastic money. People need money for transacting, to purchase goods and services and we are saying let’s use plastic money, mobile banking so that at the end of the day we minimise importation of cash. That cash will now be used to import your fuel, electricity, raw materials for industry et cetera.”