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'Banks to lead economic recovery'

by Staff reporter
26 Jun 2018 at 07:04hrs | Views
Government is working with the Reserve Bank of Zimbabwe (RBZ) and other relevant bodies to ensure the country's banking sector is in a position to play key intermediary roles in the recovery of the economy, President Mnangagwa said yesterday.

The President said this while officially launching the Zimbabwe Women's Micro-Finance Bank in Harare.

Government under the new dispensation led by President Mnangagwa has been emphasising the importance of growing the economy and the President has taken the lead through the "Zimbabwe is open for business" mantra.

It is against this background that the President said the economy needs a sound financial services sector that is responsive to business and economic needs that should lead the country to upper middle income status by 2030.

As of July 2017, middle-income countries are nations with a per capita gross national income of between $1 005 and $12 235, but Government is targeting per capita of $3 500 by 2030.

"Banks are financial intermediaries, which play a pivotal role in the economic recovery process, all facets of our economy thus depend on a thriving money and capital markets which provide the necessary concessionary funds to grow our economy," said the President.

"To this end, my Government is working with various bodies including the Reserve Bank of Zimbabwe (RBZ) to ensure all banks are sound, effective and responsive to the needs of the market in line with the desired national economic growth outcomes," he said.

The President said it was incumbent upon financial service sector players to restore the banking public's confidence. This is against the background that a substantial chunk of the populace still has little confidence in the sector after savings were eroded during the hyperinflation era and when the economy dollarised during the previous administration.

"As we establish banks, like this one, I exalt all players in the financial services sector to make numerous efforts to restore depositors' confidence as well as develop and offer packages that are in sync with the type of business and personal needs of our society.

"I further encourage the sector to resist the temptation towards exploitative tendencies such as exorbitant bank charges and levies which in the long-term dwindles the market confidence and scares depositors away," said President Mnangagwa.

Speaking at the same occasion RBZ Governor Dr John Mangudya, said the coming on board of the Zimbabwe Women's Micro-finance Bank was a step in the right direction for the country towards achieving upper middle income status by 2030.

". . . If we empower women, employ more people, we increase GDP (Gross Domestic Product), which is the missing link in this economy," said Governor Mangudya.

"We want to increase GDP as is said by Government, it is our vision 2030 that GDP should have increased and therefore you have only 12 years women to ensure that the GDP increases to $3 500 per capita. That figure is quite high, it means that we are looking for GDP of between $60 and $65 billion by 2030," he said.

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Source - chronicle
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