Business / Local
'Money alone will not save Zimbabwe'
20 Sep 2015 at 09:28hrs | Views
The International Monetary Fund (IMF) says Zimbabwe needs to create a level playing field for private sector-led growth because just "dumping" money into the country will not resuscitate the ailing economy.
IMF resident representative to Zimbabwe, Christian Beddies told delegates at a meeting on Zimbabwe's re-engagement with the international community in Harare on Friday that a level playing field and a stable micro-economic environment were needed to create an environment conducive for investment.
"Dumping money into a country does not solve anything. If we do give money to a country, it is a bit like anaesthesia in a surgery; we are trying to mitigate the pain of structural adjustment by providing some financing. The only way for Zimbabwe to grow is to create an enabling environment and create a level playing field for private sector growth," said Beddies.
"So, what do we need going forward? A level playing field, a stable micro-economic environment that is conducive for investment, private sector-led growth and ultimately job creation. [What is needed is] a Zimbabwe that promotes equal opportunities for all economic participants and participation by all."
Beddies was a panellist alongside British Ambassador to Zimbabwe Catriona Laing and Ashok Chakravarti, senior advisor in the USAID strategic economic research and analysis programme and lecturer in the economics department at the University of Zimbabwe.
The event was hosted by The Space, an international platform convened by young people to provide solutions and opportunities for growth and thought process to current and future challenges.
Zimbabwe is re-engaging creditors in a bid to normalise relations. The country's public and publicly-guaranteed debt stands at $8,4 billion, and has arrears of $1,8 billion to the IMF, World Bank and the African Development Bank.
Reserve Bank governor John Mangudya is set to visit three European capitals to seek support for the country's debt strategy ahead of the IMF/World Bank annual meetings in Lima, Peru, next month. The strategy will be tabled before the preferred status creditors.
IMF resident representative to Zimbabwe, Christian Beddies told delegates at a meeting on Zimbabwe's re-engagement with the international community in Harare on Friday that a level playing field and a stable micro-economic environment were needed to create an environment conducive for investment.
"Dumping money into a country does not solve anything. If we do give money to a country, it is a bit like anaesthesia in a surgery; we are trying to mitigate the pain of structural adjustment by providing some financing. The only way for Zimbabwe to grow is to create an enabling environment and create a level playing field for private sector growth," said Beddies.
"So, what do we need going forward? A level playing field, a stable micro-economic environment that is conducive for investment, private sector-led growth and ultimately job creation. [What is needed is] a Zimbabwe that promotes equal opportunities for all economic participants and participation by all."
The event was hosted by The Space, an international platform convened by young people to provide solutions and opportunities for growth and thought process to current and future challenges.
Zimbabwe is re-engaging creditors in a bid to normalise relations. The country's public and publicly-guaranteed debt stands at $8,4 billion, and has arrears of $1,8 billion to the IMF, World Bank and the African Development Bank.
Reserve Bank governor John Mangudya is set to visit three European capitals to seek support for the country's debt strategy ahead of the IMF/World Bank annual meetings in Lima, Peru, next month. The strategy will be tabled before the preferred status creditors.
Source - The Standard
