Zimbabwe

Zim central bank has 'no tools' to fix economy

2014-05-08 09:08

(Shutterstock)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Special Report

Four kids burn to death in Zim - report
Four kids burn to death in Zim - report

Four children were burnt to death in southern Zimbabwe when a can of petrol being stored inside their home caught fire, the official Chronicle newspaper has reported.

Harare - Zimbabwe's new central bank chief on Wednesday said the country's economy was weakening and the bank did not have the tools to fix it.

In his first statement since assuming the role Reserve Bank governor on 1 May, John Mangudya said the past three years had been tough for the economy and for many Zimbabweans.

"The economy is weaker and the financial system is depressed," he said, admitting that the "Reserve Bank has no tools at the moment to influence the economy".

Zimbabwe is saddled with high unemployment levels and a dearth of foreign investment.

Many companies have shuttered and those still operating are often unable to pay each other for services or meet loan commitments to banks. At the same time the tax base is narrowing and tax revenues plummeting.

"The lack of liquidity and its limited circulation within the economy remains the biggest challenge that the Zimbabwe economy is facing," he said urging private companies and state institutions to boost exports.

Frozen out of foreign debt markets and plagued by years of political crises and international sanctions, Zimbabwe faces what the central bank recently labelled a "severe and persistent liquidity crunch".

Renewed economic troubles

The country had hoped that China and other allies might come forward with financial assistance, but that has not happened.

Zimbabwe does not have its own currency, having ditched the Zimbabwean dollar in 2009 for multiple foreign currencies, including the US dollar and South African rand, after a prolonged period of hyper-inflation.

Starting from a low base, Zimbabwe's headline growth figures look healthy, although the government's projections of 6% expansion in 2014 are disputed by the World Bank, which predicts three percent.

Amid the renewed economic troubles, there have been glimpses of a softening tone from veteran President Robert Mugabe. Last month, he tried to convince foreign investors that his government's efforts to seize white-owned farms did not make the country a risky place to invest.

Mangudya urged greater discipline.

"Discipline to refrain from living beyond our means as this would bring greed and corruption," he said.

- AFP

Read more on:    robert mugabe  |  china  |  zimbabwe  |  southern africa
NEXT ON NEWS24X

SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
7 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
SPONSORED CONTENT
When is a mountain more than just a mountain? 2014-12-18 07:26

When it’s an adventure! A group of Old Mutual employees found out how much is enough courage, endurance and camaraderie to take on Africa's highest peak.

/News

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Kalahari.com - shop online today

2DAYS ONLY – 30% off Appliances

Coffee makers, blenders, fans, juicers and more. T&Cs apply. Shop now!

2 DAYS ONLY – 40% off books

Get 40% off when you buy 2 books. For two days only! T&Cs apply. Buy now!

Up to 50% off on outdoor gear

Save on chairs, blankets, cooler bags, umbrellas and more. Shop now!

Save on Samsung

Cameras, mobile phones, TVs, Tablets and more. While stocks last. Shop now!

Grand Theft Auto 5

Now available on PS4, Xbox One and PC from R649. Buy now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

At last you are able to see the light. You are able to break through obstacles in an innovative and original way. Visualisation is...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.