The Sunday Mail
Clemence Machadu
Insight
Howdy folks!
We are coming from an eventful couple of weeks and it is sometimes difficult to catch up with everything.
What is clear is that the wheels of economic transformation are in motion as the economy defines a new path and equilibrium.
As with any change, different stakeholders are coping differently.
But let us not forget the big idea in all these happenings: it boils down to a few words folks – discipline, trust, political will, implementation, patience and a few other nice words.
One good thing is that the new Government is not in denial, folks. It acknowledges that its forebear was not frugal and allowed creation of RTGS dollars, which in turn created excessive and unsustainable demand in the economy, with the greenback becoming elusive.
Government is like a debt prisoner who has been released on parole – you know the drill, folks. It has been used to the RTGS prison set-up, where it has been confined for years now, and now needs to be integrated in the new environment.
With RTGS money creation for expenditure purposes out of the picture, Government is trying to live a “clean” life.
Y’all folks know how ex-convicts are treated with suspicion.
Sometimes they are feared more than before their time of incarceration. Whatever they do is scrutinised, left, right and centre. That is expected.
Changing things means you quit your old ways and make painful decisions.
Society plays a very big role in making or breaking an ex-convict.
They have to trust that the person has changed his/her ways and is willing to make amends.
Folks, the above narrative is a typical quintessence of present-day Zimbabwe.
As with any ex-convict, four or so rules of engagement apply.
First and most importantly, give them a chance.
Secondly, understand that they are bound to make mistakes — remember, they have been isolated from the mainstream society for some time.
Thirdly, we should forgive them and engage them under new terms of references — if we don’t, then we should cast the first stone.
Fourthly, they are supposed to demonstrate their commitment to reform beyond any shadow of doubt.
They should be prepared to give a convincing response to the simple question: why should I trust you?
Every move is questioned and treated with caution.
It brings us to the big question: is Government now ready to be trusted?
That can only be ascertained from what it says and what it does. Government told us that it is doing away with its penchant for disproportionately spending, especially where it doesn’t have the resources.
Instead, it has rather taken the painful decision of introducing a 2 percent tax on electronic transactions to raise “clean” revenue to sustain its new way of life.
It is now up to the “members of the society” to make or break Government.
Without taking a “risk”, we cannot expect anything good to come out. Or can we?
Take the Confederation of Zimbabwe Industries (CZI), for example.
The country’s largest BMO initially opposed the two percent per dollar tax and pushed for $2 per transaction.
However, it has since decided to rally behind Government and now views the new tax as a “short-term shock therapy” for the economy.
Folks, CZI has set a precedent which we all should now reflect on. This is the burden that we should all share.
Business should resist the impulse to lump the burden on the consumer. We are all in this together.
Folks, Section 298(1b)i of the Constitution says “the burden of taxation must be shared fairly”.
So industry should absorb its share. After all, Government is protecting it from the potentially devastating impact of cheap imports.
Retailers, too, should know that this is not a passport to unjustifiably enrich themselves through the “sin” of profiteering.
Those who read the Good Book might have came across where it says, “By faith, Moses, when he was grown up, refused to be called the son of Pharaoh’s daughter, choosing rather to be mistreated with the people of God than to enjoy the fleeting pleasures of sin”.
This is a fleeting phase folks, and we all should see the big picture and stop robbing the people blind.
How is it possible that a product that was being sold for $3 by pharmacies a fortnight ago is now going for more than $10? If this is not profiteering, then what is?
Government should equally take responsibility and be consistent. It is currently in the spotlight.
Already, the market is still trying to come to terms with the separation of foreign currency accounts.
The last thing the market needs at the moment are conflicting and confusing statements from the authorities.
Folks, our economy is already suffering from a black market that is further driving both demand and consumption that cannot be met by production.
For example, someone with US$100 can simply sell it on the parallel market for $500 RTGS and go on a shopping spree.
It simply creates inorganic demand that cannot be sustainably met by supply. And to what end?
Folks, yes, we need to make sacrifices, but everyone should play their role to the maximum.
This is the Second Republic and everyone deserves a second chance.
Later folks!
