Zimbabwe promises bold economic turnaround despite soaring prices: the norm

DAVOS, Switzerland – The Zimbabwean Minister of Finance on Tuesday painted an optimistic picture for his country, despite protests against the price of gas that, according to human rights groups, have left at least a dozen dead.

Mthuli Ncube told Reuters that, next year, he hoped to bring inflation back to 42% today by less than 10%, find the necessary money to cover the reimbursement of the debt of $ 1.2 billion and introduce a new currency.
He also referred to a privatization program that has so far seen little real progress.
"Zimbabwe is currently the best buy in Africa," he said in an interview at the World Economic Forum in Davos.

SEE ALSO:Zimbabwe to allow new companies to exploit diamonds

Zimbabwe is facing the worst economic crisis of its decade. Shortages of food, fuel and foreign currency are putting pressure on the government of President Emmerson Mnangagwa, who was elected to power after the overthrow of Robert Mugabe in 2017.
The government recently raised the price of fuel, triggering protests across the country. Human rights groups say Zimbabwean security forces have used live ammunition to crack down on them.
Ncube, a former banker whose appointment last year was to mark a new interest in the economy, said Mnangagwa had issued "a very clear statement to say that violence is really not allowed. that the violence is non-Zimbabwean on both sides ".
He added that any abuse committed by security forces would be punished.
"It is precisely because of the opening of the democratic space that this (the demonstrations) has happened," he said.

SEE ALSO:Zimbabwe's mines minister calls on companies to explore diamonds

"There is only one center of power who is the president. Everyone is behind him. "
Zimbabwe owes $ 7.4 billion in external debt and is expected to contribute $ 1.2 billion in 2019, mainly to the World Bank and the African Development Bank. Ncube says he's talking to the G7 countries to find a way to make those payments.
Neighboring South Africa recently raised the possibility of financial support for Zimbabwe. Ncube said he would welcome everything they could offer.
One of the biggest problems in the country is the dysfunction of the money market. In recent years, Zimbabwe has used an officially dollar-denominated electronic dollar on the US dollar. The black market rate is about four to one.
Ncube wants to introduce a new national currency a year from now. This process, he said, could involve a change in the official rate, because it was impossible to completely treat "the distortions that continue to infect".

SEE ALSO:South Africa launches arrest warrant against Chinese Grace Mugabe

Mr. Ncube said that a trip he and President Mnangagwa had just made to Azerbaijan, Belarus, Kazakhstan and Russia had provided ideas that Zimbabwe wanted to copy, especially on natural resource management. and the use of revenue to finance development.
"We were pleasantly impressed, very impressed, and everyone should be," he said. "If you go to Astana (the capital of Kazakhstan), you will be blown away."

Related Topics

Zimbabwe Minister of FinanceMthuli NcubePresident Emmerson Mnangagwa