Fadzayi Mahere criticizes Nick Mangwana's spin on IMF economic assessment

Former Mt Pleasant legislator and constitutional lawyer Fadzayi Mahere has publicly rebuked Information Permanent Secretary Nick Mangwana for attempting to portray the International Monetary Fund's (IMF) recent observations on Zimbabwe's economic challenges as signs of progress.

Mahere dismissed Mangwana's interpretation as a misleading spin on the IMF's critical findings, especially concerning widespread corruption and the limited acceptance of the newly introduced Zimbabwe Gold (ZiG) currency.

An IMF delegation, led by Mission Chief Wojciech Maliszewski, is currently in Zimbabwe conducting the Article IV Consultation, a key review of the country's economic policies and progress under the IMF's regular assessment framework. This latest visit follows an earlier mission in January and is viewed as a critical moment for Zimbabwe's reform agenda.

While Zimbabwe's Staff Monitored Programme (SMP) does not provide funding, its successful implementation is crucial for unlocking future concessional financing, potential debt restructuring, and restoring international confidence-elements vital to the country's recovery. Zimbabwe faces a daunting public debt exceeding US$21 billion, with over US$12.3 billion owed to external creditors.

After the visit, IMF Mission Chief Maliszewski emphasized the need for a fully functioning ZiG currency, fiscal discipline, and a credible currency exchange market. He also highlighted corruption as a major concern, stressing that meaningful debt restructuring and governance reforms were essential.

In response, Mangwana posted on his X (formerly Twitter) account a notably optimistic summary of the IMF's remarks, stating: "The IMF sees macroeconomic stability in Zimbabwe- we see it too. They want to see the ZIG becoming fully our national currency - we want that too. They see the ZIG stability- we are witnesses."

Mahere strongly challenged this narrative, responding on X with a detailed rebuttal: "Did you listen carefully to what the IMF representative is actually saying? These are the key takeaways: This Govt has no fiscal discipline. Fiscal discipline is urgently required. The public financial management system is worrisome. Read ‘there's too much corruption.'"

She added that the IMF's message reflected a deep lack of trust and public confidence in government claims about the economy's health. "The people need reassurance that the so-called reforms introduced will stay," Mahere said.

Regarding the ZiG currency, Mahere noted: "The ZIG is not yet a national currency. While it may look stable, it is not widely used. The official exchange rate is artificial as demonstrated by the existence of a parallel market rate. The fact that the two don't converge is problematic. You can rig an election but you cannot rig the economy."

Fourteen months after its launch, the ZiG currency continues to struggle with acceptance. It fails to facilitate payments for essential services such as passports and fuel, with many civil servants and businesses relying on US dollars on the parallel market, where the exchange rate stands at US$1 to 40 ZiG, far above the official rate of US$1 to 27 ZiG set by the Treasury.

Mahere's remarks underscore the ongoing economic challenges Zimbabwe faces and cast doubt on official narratives that portray the country's situation as stable or improving, particularly amid IMF warnings of fiscal mismanagement and corruption.