The Sunday Mail
Authorities are cognisant of public frustration over cash shortages and a host of measures are being implemented to arrest money supply challenges, President Emmerson Mnangagwa has said.
The President’s assurance comes after Africa Export-Import Bank last week availed US$1,5 billion to Zimbabwe to help resolve liquidity challenges by boosting production and exports.
In his closing remarks at Zanu-PF’s Extraordinary Congress in Harare on Friday, President Mnangagwa said: “Allow me to turn to a matter which I know is of great concern to us all; that of cash shortages. I realise that people still have very little access to their hard-earned cash.
“The frustration is felt more so now as we prepare for the festive season and, thereafter, the beginning of the school term. My Government remains committed to redressing the structural problems that have resulted in this state of affairs.
“To this end, comprehensive measures will be rolled out to address this issue starting, of course, with fiscal discipline, drastic reduction of the budget deficit and increased productivity. I urge all of us to be patient: Soon, we will see the benefits of the new economic era.”
The US$1,5 billion kitty is one of the largest financial injections Zimbabwe has received in recent years, with the banking sector giddy about the development.
Bankers’ Association of Zimbabwe President Dr Charity Jinya said: “We are now going to meet with the Reserve Bank of Zimbabwe to discuss further issues concerning the fund.
“There are two issues on the cash shortages. For those who are producing for export, we need to give them the environment to continue to be able to export so they continue generating money for the country.
“Then the public and corporates should also understand that for money to keep circulating in the ban, they need to deposit that money.”
Dr Jinya added: “So, we need to have a culture of depositing so that we can maintain the cycle. If we do not do that, any injection that may come through may only solve the situation for a short period. All of us need to be responsible if we are to address this issue of cash shortages.”
Agribank chief executive Dr Somkhosi Malaba said: “It’s a very positive move for business because it will assist the productive sector. It is also a show of confidence in the economy.
“What is more important is that it will help the country pay external payments that are due. So, the cash shortages may take time to end, but it will have a positive impact on the banking sector.”
