News / National
Embrace bond notes, says Mnangagwa
03 Jun 2016 at 06:36hrs | Views
VICE President Emmerson Mnangagwa has urged Zimbabweans to embrace bond notes that will be introduced in October.
Addressing Zanu-PF supporters gathered at Sino Cement Company in Gweru yesterday, Mnangagwa said the bond notes would boost internal trade, stop the externalisation of funds and ease the cash crunch.
The VP, who is on a two-day tour of manufacturing industries in the Midlands province, said the bond notes were also aimed at reviving the economy.
He said as the currencies of countries in the region were depreciating in value, everyone was chasing after the United States dollar, thereby empting them from Zimbabwe.
"We want our economy to get out of the doldrums. We have been under the illegally imposed sanctions for the past 16 years which affected productivity leading to the closure of companies. As a result, we ended up dumping our Zimbabwe dollar for the multi-currency regime. But because we don't print the US dollar, all Sadc countries don't have the US dollar and they are coming to raid Zimbabwe. Even those who trade in tomatoes come here and get the US dollar. If we sell anything in Zambia, we get kwachas, in Botswana its pulas and that has resulted in a shortage of the US dollar in the economy," VP Mnangagwa said.
"In February 2009, we had the US dollar, Euro and the Pound but as time progressed, US dollar gained value and everyone now wants the US dollar."
VP Mnangagwa said a bond note would have the same value as the US dollar.
"So the government with a $200 million facility is introducing bond notes. They will be equivalent or backed by the $200m loan facility. So if they start circulating, they won't be stolen or externalised since the notes don't work outside the country. The bond notes will have the same value as the US dollar. They will be banked in the same account as the US dollar. So the coming bonds notes should be embraced by all Zimbabweans as they will benefit everyone," said the VP.
He said it was high time Zimbabweans work together and accept that solutions for economic recovery will come from within.
VP Mnangagwa said the economy was on the recovery path and some companies such as Sino-Zimbabwe Cement Company were now operating at about 70 percent capacity utilisation while Bata Shoe Company was at 85 percent.
"We also have Unki Mine that is investing $120 million in a new smelter. We have other investments coming into the country and we are in the right direction," he said.
Addressing Zanu-PF supporters gathered at Sino Cement Company in Gweru yesterday, Mnangagwa said the bond notes would boost internal trade, stop the externalisation of funds and ease the cash crunch.
The VP, who is on a two-day tour of manufacturing industries in the Midlands province, said the bond notes were also aimed at reviving the economy.
He said as the currencies of countries in the region were depreciating in value, everyone was chasing after the United States dollar, thereby empting them from Zimbabwe.
"We want our economy to get out of the doldrums. We have been under the illegally imposed sanctions for the past 16 years which affected productivity leading to the closure of companies. As a result, we ended up dumping our Zimbabwe dollar for the multi-currency regime. But because we don't print the US dollar, all Sadc countries don't have the US dollar and they are coming to raid Zimbabwe. Even those who trade in tomatoes come here and get the US dollar. If we sell anything in Zambia, we get kwachas, in Botswana its pulas and that has resulted in a shortage of the US dollar in the economy," VP Mnangagwa said.
VP Mnangagwa said a bond note would have the same value as the US dollar.
"So the government with a $200 million facility is introducing bond notes. They will be equivalent or backed by the $200m loan facility. So if they start circulating, they won't be stolen or externalised since the notes don't work outside the country. The bond notes will have the same value as the US dollar. They will be banked in the same account as the US dollar. So the coming bonds notes should be embraced by all Zimbabweans as they will benefit everyone," said the VP.
He said it was high time Zimbabweans work together and accept that solutions for economic recovery will come from within.
VP Mnangagwa said the economy was on the recovery path and some companies such as Sino-Zimbabwe Cement Company were now operating at about 70 percent capacity utilisation while Bata Shoe Company was at 85 percent.
"We also have Unki Mine that is investing $120 million in a new smelter. We have other investments coming into the country and we are in the right direction," he said.
Source - chronicle
