Zimbabwe News and Internet Radio

Companies closure a concern

By Jacob Mafume

The People’s Democratic Party recently released a statement outlining concern over Deputy President Mnangagwa’s demonstration of ignorance of the real Zimbabwe we are living in.

Jacob Mafume
Jacob Mafume

Mnangagwa’s distorted reality was expressed through a shocking sensational claim that the government had created more than 2 million jobs; we found this hallucination not only flummoxing but also nauseating. It was and remains an insult to the jobless masses of our people until such a time Mnangagwa gets back to his senses to withdraw the statement.

In our statement we argued that Mnangagwa’s tongue probably slipped, he probably wanted to say over two million jobs have been lost.

Just yesterday, the daily news reported that over a hundred companies had closed with tens of thousands of jobs lost in the process. This development is an indictment on ZANU PF’s failed leadership.

The trend of companies closure and subsequent job losses has been the norm since ZANU PF regained solitary control of government in 2013.Job losses increased after the Zuva case, followed by ZANU PF’s amendment of the Labour Act which dug the dreams of working people six fit under.

ZANU PF has worryingly displayed lack of capacity to respond to the current crisis, this in effect must be the easiest of jobs. A few correct fiscal decisions made consistently in this situation will result in recovery of the economy as well as rapid economic growth coupled with rebound factors.

We are aware that this will not happen considering the peasantry displayed in Chinamonics as well as the new wave of madness being preached in the command mantra.

The economy has been on a downward spiral since 2013, capacity utilisation has dropped to the levels of 2008, below 30%.

The growth rate in GDP terms has gone to shocking figures of -3,2% only mitigated by a good rain season and the hard work of the Zimbabwean people which resulted in a good maize and tobacco season.

The budget deficit if now at 44% of GDP, Chinamasa continues to revise revenue targets downwards while revising expenditure upwards defying the logic of basic Keynesian economics.

Domestic debt increased through the issuance of toxic Treasury Bills,it has ballooned to 60% of GDP.

A liquidity crunch has also crippled the economy, companies have lost millions of dollars in hours spend in banking queues at the expense of production.

Aggregate demand is also on a downward spiral with the citizen preferring to conserve the little they have digging the economy deeper into a depression.

Prices of basic goods are shooting up as a result of distortions caused in the economy by bad decisions including the bond note, totalitarian taxes and S164.

All these factors point to a hopeless situation, a lack of capacity to respond by Mugabe, Mnangagwa who for all intends and purposes is currently running government and Chinamasa who has redefined failure.

In the Holistic Program for Economic Transformation (HOPE) we proffer solutions to the current crisis, in light of this blue print, we suggest the following.

  1. The government must design an Emergency Recovery Economic Plan supported by an Emergency Recovery Fund.(Creating such a fund will not be possible under a ZANU PF government)
  2. Inject funds into traditional funds like DIMAF and ZETREF to revive distressed companies as part of supply side solutions.
  3. The government must leave within its means, maintaining a primary balance is a hallmark of successful fiscal cycles.
  4. Deal with the liquidity crisis including paying back the money stolen by the government at the RBZ which was kept in RTGS balances.
  5. The government must construct itself out of the current crisis, by dealing with the infrastructure gap employment will be created and aggregate demand will also increase.
  6. Initiate a sustainable debt clearance strategy and end isolation of the country by sincere reengagement of the international community.
  7. Combat corruption which has put a huge premium on the economy, the strategy must include regular life style audits for all top public officials.
  8. Scrap the bond note; repeal SI64 and the Indigenisation ACT.

Together Another Zimbabwe is Possible
Jacob Mafume
PDP Spokesperson