Tackle economic crisis: CZI

measures should immediately be put in place to avert the deepening of the crisis,” read one of the resolutions adopted by the business lobby group at its congress in Nyanga last week.
In the Mid-Term Fiscal Policy Statement, Finance Minister Tendai Biti cut economic growth forecasts. citing poor performance of key sectors, such as agriculture.
He had projected the economy would expand by 9,4 percent this year. The economy is now projected to grow by 5,6 percent.
Reserve Bank of Zimbabwe Governor Dr Gideon Gono had earlier warned against the country’s over-reliance on the earnings from the platinum sector, saying if prices fell, this could result in a serious crisis for the country.
“The mining sector is the goose that lays the golden egg and the platinum sector is the major contributor of earnings as it brings about 45 percent of the total earnings,” said Dr Gono. “You can’t have such huge disproportionate distribution of wealth. If the wheels come off, this country will be in a crisis.” He said the country was “extremely over-dependent on platinum earnings. As long as our growth is not inclusive, we have a recipe for disaster.”
The CZI also called for the activation of the National Economic Council, as enshrined in the Global Political Agreement. It identified key issues to be dealt with as a matter of urgency. These included power, attention to funding liquidity issues, leveraging of national resources for securitisation, imposition of duty on products that we produce locally and enforcement of “incubation” strategy.
The CZI resolved that it would continue to push for the embracing of GMOs and production using GMO technology for exports as a starting point.
The business grouping would also lobby for the introduction of a new and stable currency such as the Chinese yuan and seek authority to independently import electricity.
CZI also proposed a Fiscal Responsibility Act which would guide Government on expenditure to maintain fiscal stability.