PHILLIMON MHLANGA IN VICTORIA FALLS
Government must provide leadership in the pursuance to stabilise Zimbabwe’s frail economy,the CEO Africa Roundtable chairman Oswell Binha has said.
Binha spoke at the on -going meeting for CEOs in the resort town of Victoria Falls.
The meeting kicked off yesterday and runs until tomorrow.
He said the economic conditions have worsened characterised by rocketing exchange rate, which is spiraling out of control, high inflation and a failing foreign currency auction system, among others.
The Reserve Bank of Zimbabwe is battling to clear a huge backlog on forex allotted at the auction system. Captains of industry said it takes the central bank at least two months to release forex allotted at the auction system.
The dire situation, executives said is forced them to source forex from the parallel market, where premium are high.
Binha said government should provide leadership.
“As we look at our national macroeconomic framework, I am the first to acknowledge that we have issues. Topping the chart is the auction system which seems to be failing. Inflation is escalating.
“Foreign payments are an issue,” Binha said.
He added: “We must embrace and understand the hard fact that there is no silver bullet.
“We need to put on our creative hats, invite Solomonic wisdom to find ways to address these problems.
“This is a collective process. No amount of fingerpointing, blame game and incarceration of business executives will extricate us from this quagmire.
“At CEO Africa Roundtable, we believe that markets must be at the centre of any solution. I hope that the government will find a rationale mechanism of providing the much-needed leadership to deal with threats of instability, the confidence and trust gap, and facilitating the creation of a one zimbabwe team for strong national competitiveness.
“The business sector is crucial.”
Binha said that economic stability should be backed by the ‘sobriety’ of policies that guarantee macro-economic stability on the back of currency stability.
“I encourage every delegate attending this gathering to feel free, no holds barred, to engage in meaningful conversations as we deliberate on the current state of the economy to address the current currency mayhem and pandemonium exacerbated by the planned and ongoing incarceration of corporate leaders.
“Wholesome abuse of the foreign currency auction system is being mentioned as the major driver of this clampdown,” Binha said.
