Carte Blanche with Perry

Image Credit - Nomad Africa Exactly 30 days from the date a harried Mthuli Ncube wrote to the International Monetary Fund (IMF) pleading for debt relief and financial assistance to help Zimbabwe`s fight against Covid-19, the finance minister put out a series of tweets announcing a major government policy. Mr Ncube announced plans to launch the Victoria Falls Stock Exchange (VFEX) to trade in “hard currency” – read United States dollars. In his own words, the VFEX is aimed at “foreign investors and global capital, especially (sic) mining sector.” That such a major policy development was announced at 7:06pm, on a Saturday evening, is perhaps meant to signal to the global market, and indeed the whole country, that the Zimbabwean authorities are hard at work to repair the economy. The said economy, by Ncube`s own admission in the leaked IMF letter, is set to contract by anything from 15-20% this year, under the weight of the Covid-19 pandemic. $18 Billion Economic Stimulus...

Much has been said about President Emmerson Mnangagwa’s 5-month reign in office. The full weight of an eagerly expectant nation, following years of decadence has been loaded on his shoulders.  There has been several voices from across the political divide that have urged Mnangagwa on since the events of last November, which toppled long-time ruler Robert Mugabe.  That in itself perhaps is a sure sign that Zimbabweans want development and progress, from whichever quarter it comes from. It is from this standpoint that so many people were – and one might even say are still ready to give Mnangagwa a chance to prove himself. Yet to some, the very notion of giving Mugabe’s long time sidekick, another chance when he has been an integral part of the very same outfit responsible for the waning of Zimbabwe’s fortunes sounds utterly absurd. Can a leopard change its spots? While there are vocal critics of Mnangagwa, there are equally resounding voices that leap to his def...

Zimbabwe`s current structural constraints, will likely curtail economic growth, and private sector investment in 2016. The country`s growth outlook for this year remains negative, barring a miraculous intervention in policy shifts to spur economic activity. Without the prioritization of economic growth ahead of the political agenda, this pessimistic view of Zimbabwe`s economy could even get worse and spill over into 2017. The Ministry of Finance and the World Bank have both come up with overly optimistic growth forecasts for this year at 2.7% and 2.8% respectively. But as we have come to expect, these forecasts will be trimmed down as the year progresses. Here are some of the salient factors to look out for in the coming year. Inflation Outlook Zimbabwe`s inflation outlook is likely going to remain negative for much of the year – deflationary conditions. The South African Rand`s weakening, political uncertainty in the country, a growing fiscal deficit and sluggish economi...

Indigenisation Minister Patrick Zhuwawo If the Zimbabwean government earned a buck every time the word indigenization was mentioned, the government probably wouldn’t be struggling to pay civil service salaries. That is just how prominent the issue of indigenizing the economy has grown in Zimbabwe over the years. From the time of minister Saviour Kasukuwere vociferously pushing for the nationalization of banks and mines, to the somewhat toned down era of Francis Nhema, it appears we are headed for exciting times, with new indigenization minister Patrick Zhuwawo. His recent showdown with finance minister, Patrick Chinamasa over the implementation of the policy shows how crucial this policy is in the broader national context, but   even more, how incoherent the government`s stance on this issue is. A logical look at the issue reveals truths that may be unpalatable to some. I put it to you that, indigenization and empowerment is not taking what someone else has worked hard to...

Zimbabwe`s Finance Minister Patrick Chinamasa Recently, there have been amplified calls by government authorities in appealing for Foreign Direct Investment. The importance of foreign investment cannot be over-emphasised, especially for an economy at a precipice like ours.  In Mozambique for instance, during the past year, the country registered a 30 percent increase in its FDI flows to $7, 1 billion. It is no coincidence that the International Monetary Fund forecasts its economy to grow by as much as 8 percent this year alone, making it one of the leading ‘frontier market’ economies. What is clear from this example is the crucial role that capital accumulation can play in fuelling economic growth. The Zimbabwean government`s economic blueprint (ZimAsset) which is a set of policies meant to induce economic recovery requires at least US$27 billion for its successful implementation. In the policy document, the government emphasises on mobilising funding for the programme ...

That China has emerged as a global economic powerhouse especially in the aftermaths of the global financial crisis cannot be disputed. In fact, it is credited as having been the key driver of global economic growth, in a period where the western economic markets were largely subdued. Africa has benefitted immensely from the growth of the Chinese economy in the recent past. Statistics show that by the end of 2012, China`s Foreign Direct Investment in the continent approached the $20 billion mark. For all intents and purposes, this is a significant amount of investment which goes to show the prominence with which the so called ‘sleeping giant’ is rising. Zimbabwe has increasingly become more reliant on China, on the back of the ‘look east policy’ being pursued by the Zimbabwean government. Chinese owned Anjin investments invested $400 million to form a joint venture with the Zimbabwean government to mine diamonds in the Marange fields. Furthermore, various companies in the count...