Opinion / Columnist
Is Mugabe aware of Zimbabwe's dire straits?
05 Aug 2014 at 16:04hrs | Views
Industrialists have questioned President Robert Mugabe's awareness of Zimbabwe's economic dire straits.
This comes as the country's industry is in a deplorable state, with many companies shutting down and many more projected to as the country's economy deteriorates further.
Recently, Finance minister Patrick Chinamasa backed down on his 6,2 percent 2014 GDP growth target to 3,1 percent on the back of depressed economic activity.
Last week, Conferderation of Zimbabwe Industries CZI)'s past immediate president Kumbirayi Katsande expressed concern over Mugabe's comprehension of the current state of Zimbabwe's economy.
"I would like to ask the honourable minister of industry (Mike Bimha) if the head (Robert Mugabe) is up to date with the current economic condition," he questioned at the just ended CZI congress in Mutare.
"I have noticed we invite him (Mugabe) to officiate and open companies, but never invite him when they close down," said Katsande, who is also Nestle Zimbabwe managing director.
About a fortnight ago, Mugabe claimed, at the President's Medal Shoot prize-giving ceremony at Cleveland Rifle Range in Harare, that Zimbabwe was experiencing economic growth.
"Let me assure our people that the country's economy is on a recovery path. Government is going to employ several measures aimed at achieving desired results," the 90 year-old leader said.
But, his remarks come as government is struggling to foot the civil servants' wage bill, among other obligations.
About 86 percent of government's expenditures is spent on recurrent expenditure, particularly salaries.
According to Bankers Association of Zimbabwe president, Sam Malaba, the country is struggling with a total debt $8,9billion, with $4,9 billion being external arrears while $2,4 billion is multi-lateral nation arrears.
Meanwhile, the country has seen an expansion of the informal sector - estimated to employ about 5,8 million people - as the formal sector shrinks.
However, Bimha insisted that Mugabe is fully aware of the dire state of Zimbabwe's economy.
He said the president had even asked him to compile a comprehensive report on the state of industry with a view to finding solutions to the constraints that the private sector is facing.
"He (President Mugabe) said we want to know what is happening to industry, sector-by-sector, we want to know the constraints industry is facing and what government can do to assist," said Bimha.
Bimha also said government had set up two advisory committees, one on ease-of-doing business and another on imports, to help craft solutions to the country's economic woes.
This comes as the country's industry is in a deplorable state, with many companies shutting down and many more projected to as the country's economy deteriorates further.
Recently, Finance minister Patrick Chinamasa backed down on his 6,2 percent 2014 GDP growth target to 3,1 percent on the back of depressed economic activity.
Last week, Conferderation of Zimbabwe Industries CZI)'s past immediate president Kumbirayi Katsande expressed concern over Mugabe's comprehension of the current state of Zimbabwe's economy.
"I would like to ask the honourable minister of industry (Mike Bimha) if the head (Robert Mugabe) is up to date with the current economic condition," he questioned at the just ended CZI congress in Mutare.
"I have noticed we invite him (Mugabe) to officiate and open companies, but never invite him when they close down," said Katsande, who is also Nestle Zimbabwe managing director.
About a fortnight ago, Mugabe claimed, at the President's Medal Shoot prize-giving ceremony at Cleveland Rifle Range in Harare, that Zimbabwe was experiencing economic growth.
"Let me assure our people that the country's economy is on a recovery path. Government is going to employ several measures aimed at achieving desired results," the 90 year-old leader said.
But, his remarks come as government is struggling to foot the civil servants' wage bill, among other obligations.
About 86 percent of government's expenditures is spent on recurrent expenditure, particularly salaries.
According to Bankers Association of Zimbabwe president, Sam Malaba, the country is struggling with a total debt $8,9billion, with $4,9 billion being external arrears while $2,4 billion is multi-lateral nation arrears.
Meanwhile, the country has seen an expansion of the informal sector - estimated to employ about 5,8 million people - as the formal sector shrinks.
However, Bimha insisted that Mugabe is fully aware of the dire state of Zimbabwe's economy.
He said the president had even asked him to compile a comprehensive report on the state of industry with a view to finding solutions to the constraints that the private sector is facing.
"He (President Mugabe) said we want to know what is happening to industry, sector-by-sector, we want to know the constraints industry is facing and what government can do to assist," said Bimha.
Bimha also said government had set up two advisory committees, one on ease-of-doing business and another on imports, to help craft solutions to the country's economic woes.
Source - dailynews
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