HARARE – The Zimbabwe government’s move of suspending mobile money solutions and all trading of stocks on the local bourse (ZSE) in an attempt to bolster it’s recently introduced forex trading auction system in intrusive, ENN reports. The development, announced by Information Ministry permanent secretary Nick Mangwana on 26 June, 2020 comes at a time the country is desperate for international inclusivity through regaining access to international lines of credit and attracting the much needed foreign direct investment.
Leading Zimbabwean mobile money operator Ecocash is the biggest target in this latest business purge, as proclaimed in the government announcement. The company accounts for 94% of Zimbabwe’s mobile money market share and it’s innovativeness an independence had earned it trust from users across the country as a financially inclusive money transfer solution.
In former president Robert Mugabe’s trademark style, the incumbent made use of his latest state address on the occasion of the burial of former liberation war hero Stanley Nleya to fire salvos at his detractors in what he termed ” wolves in sheep’s skin amongst our population” .
In the past week, the issue of corruption has been trending in Zimbabwe after the exposure of a #COVID19 corruption syndicate allegedly implicating Mnangagwa’s government officials and political elites Ina well- orchestrated syphon of millions of government funds through the allocation of government contracts to proscribed entities without going through a tender process, and an unjustifiable inflation of invoice costs for supplies of #COVID19 personal protective gear and #COVID19 test kits to the country through these proscribed conduits. These exposed deals involved millions of United States dollars and implicated a Zimbabwean Health Minister and two companies, namely Drax International and Jaji. As Zimbabwe continues to chase after its own tail in a bid to discover economic stability, the nation remains in wait on how the president will put his foot down against “wolves in sheep’s skins” behind this #COVIDGATE corruption scandal that has tarnished the country’s global reputation and has a negative impact on global investor preferences for Zimbabwe. These alleged acts of sabotage had life-threatening implications on the general populace of Zimbabwe , particularly the country’s ill-equipped front line health workers.
Unfortunately for Zimbabwe, the prevailing myriad of economic challenges, including fuel shortages are man-made as authorities went on a spree of issuing exclusive and half-baked economic policies that do not speak to what is on the ground, as echoed by Zimbabwean economist Gift Mugano at the unveiling of his state o economy report in Harare earlier in the year. Mugano also predicted the collapse of the local currency and said that by April 2020, it will not be possible for the local currency to operate on it’s own, a forecast that has since been fulfilled by government’s re-introduction of a multiple currency regime in Zimbabwe.
Without a boost in national productivity, the promotion of foreign currency generation, a full liberalisation of the exchange rate, national economic policy consistency and predictability, a united national approach, and putting an end to corruption, Zimbabwe’s economic recovery prospects will remain a pipedream.