Zimbabwe govt working on currency stability

In a comprehensive State of the Nation Address delivered yesterday at the new Parliament Building in Mt Hampden, President Emmerson Mnangagwa highlighted the government's ongoing efforts to stabilize the local currency, the Zimbabwe Gold, amidst a resurgence of parallel market activities driven by speculative behaviors. The President emphasized the importance of macro-economic stability and announced measures aimed at curbing these disruptive practices.

The President noted that the adoption of the new currency, anchored by gold and precious metal reserves in April 2024, was a significant step toward stabilizing Zimbabwe's economy. "Our country's banking sector is on a sound footing, with sufficient capital and liquidity buffers, while profitability, asset quality, and liquidity metrics have also remained stable," he stated.

However, he expressed concern over the recent re-emergence of parallel market activities and assured citizens that corrective measures were being implemented to protect the economy. "Together, let us lay a solid foundation for economic prosperity, peaceful development, and freedom from undue external interference," he said.

President Mnangagwa urged citizens to respect government measures designed to maintain economic stability and tame inflation. He outlined the Reserve Bank of Zimbabwe's response to increased foreign currency pressures, which included allowing greater flexibility under the willing-buyer willing-seller arrangement to promote effective price discovery and encourage participation in the foreign exchange market.

The government is committed to supporting the currency by allocating 50 percent of royalties for building reserves, with foreign currency inflows from exports increasing from $7 billion in 2023 to $8 billion in 2024.

On the legislative front, the President called on Parliament to expedite the enactment of outstanding Bills, including those concerning Persons with Disabilities, the Administration of Estates Amendment, and the Civil Aviation Amendment, among others. He stressed the need for efficiency in processing these Bills for the collective good of the nation.

The President highlighted ongoing efforts in the education sector, with the introduction of the Zimbabwe School Examinations Council Bill aimed at enhancing governance and efficiency. The Teaching Professions Council Bill is set to regulate conditions of service for educators, while the Occupational Safety and Health Bill will align Zimbabwe's practices with international conventions.

Other key Bills slated for consideration include the State Service Pensions Bill, amendments to the Public Service Act, and the Rural Electrification Fund Act. The President also mentioned the importance of the Public Interest Disclosure (Protection of Whistle Blowers) Bill in combating corruption and emphasized the need to expedite the Electronic Transactions and Electronic Commerce Bill to promote legal certainty in digital transactions.

Additionally, several protocols are expected to be tabled for ratification, including the Protocol Amending the Trade-Related Aspects of Intellectual Property Rights and the Zimbabwe-Russia Cooperation Agreement.

President Mnangagwa reiterated the government's commitment to fair resolution of compensation claims, noting that the Compensation Committee had approved 94 claims under the Bilateral Investment Promotion and Protection Agreements.

He concluded his address by underscoring the significance of peaceful coexistence both regionally and globally as essential for sustainable socio-economic development. The President called for the fast-tracking of the domestication of the Nuclear Non-Proliferation Treaty and the promulgation of the Biological Warfare Bill as part of Zimbabwe's ongoing efforts toward development and international cooperation.