by Msekiwa Makwanya via Facebook
Interesting times ahead, it’s crunch time again in Zimbabwe. Here are some of the reasons emerging:
1. Minister Zhuwao, vows to close companies that have not met his deadline, so no companies will come to invest their cash in Zimbabwe as they do not agree with his economics. President appears to have been a hint in Japan on this point. Those companies already operating in Zimbabwe will not invest in production when they are about to be closed with directors being persecuted. This means Zimbabweans have to import more and cash that is leaving the country and less being generated. This also means the companies in Zimbabwe are startved of cash and will not thrive.
2. The same Zhuwao threatens banks, big ones for that matter. Any literate person knows that people will only put their money in banks when they know that their money is safe. By destabilising banks where money is kept it means that few people will trust banks, especially given the history of failed indigenous banks. Without stable banks who can get loans, and again it affects all business.
3. As a result of cash problems, people will not trust plastic money especially when the bank is at risk of being taken over, so people are already keeping money away from banks. Minister Chinamasa and Governor Mangudya moved fast to assure banks about compliance with indigenisation, but Zhuwao continue to kane noise about the issue and it does not help.
4. International banks transfers with Zimbabwe are being affected, restricted and again externalisation becomes the natural response. If want to buy things in South Africa, I need to find a friend to pay for me and I give them cash here in Zimbabwe if they need cash here. We are back to the point where money will be sold, at some interest. Money changers are back.
5. The mortal succession fight, between G.40 and Lacoste, who are significantly different in their policies means that investors have to wait and see which faction will carry the day, and decide to invest, if at all before 2018. Zhuwao is G.40 by character and association, and those who oppose him are meant to be Lacoste according to the lenses of Zim politics. This is the current arena where the fate of the country is being decided or not decided, unless there is a general election.
6. The drought emergency has precipitated another crisis because we need money import food, and who will give us the money given what is going on?
Since the controversial Chiweshe rally, Zanu Pf will never be the same again, since the water cannons were used on War Vets, the nerve centre appear to have been disturbed.
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