Mangudya calls for mineral securitization

John Mangudya RBZ Governor says the country must come up with a regulatory framework that allows securitization of minerals and other natural resources to raise fresh capital and plug the widening fiscal deficit.

This was after the country's budget deficit overshot the target in the first half of the year at $623 million amid indications that the shortfall for the whole year could rise above $1 million.

Mangudya believes that in the face of dwindling foreign direct investment, securitization the transformation or conversion of an illiquid asset into a liquid asset or marketable securities, typically for the purpose of raising cash, could be a panacea to the country's woes.