Ray Bande
Senior Reporter
NO country can grow and develop its economy without its own currency, and solely rely on hard currency, a reason which prompted Government to introduce and put concrete modalities to stabilise the Zimbabwe Gold currency which the public and business sector need to ensure economic growth, Information, Publicity and Broadcasting Services Minister, Dr Janfan Muswere has said.
Speaking during the Zimbabwe National Chamber of Commerce(ZNCC) regional awards last Friday, Minister Muswere said reliance on foreign currency cause unnecessary exchange rate volatility.
“Industry asked for a period of time to allow the utilisation of a multi-currency system, which President Mnangagwa approved. This is precisely why we are using the multi-currency system until 2030. But if possible, we need to support our own currency.
“There is no country that can grow its economy using a hard currency as it also affects exports and create exchange rate volatility. It also affects industrial growth. For example, that country will not be in a position to control external inflation that emanates from a hard currency, hence the need to support our own currency. That is the starting point, business needs to support the ZiG,” said Minister Muswere.
He said the economy is on a steady growth trajectory compared to the past era.
“When we export primary goods, we are exporting jobs to those countries, but when we export tertiary goods, it definitely means we are earning the correct value in terms of value addition and beneficiation. But for us to be able to achieve more, we need a medium of exchange.
“In terms of National Development Strategy (NDS1) achievements, our exports grew from about US$4 billion in the pre-New Dispensation era to plus US$7 billion now. I was looking at the statistics for Foreign Direct Investment (FDI) and they showed that the new licenced players for the first quarter of the Year 2024 is now US$622 million, which clearly shows that the President has put in place the fundamentals to grow the economy,” he said.
Minister Muswere also urged business to play its role in ensuring that the country reduces its import bill and attain a balance of trade.
“I am very grateful that you have chosen a good theme for this year, focusing primarily on unlocking new frontiers for sustainable development, utilising a climate smart business growth strategy.
“One of the objectives of Vision 2030 is a private sector driven economy. Sovereignty is no longer defined by geographical boundaries. It is no longer defined in terms of territorial integrity and the security apparatus that we have. It is also defined by capacity, which is why President Mnangagwa always says: ‘Nyika inovakwa nevene vayo’.
“Business has a role to play in developing the local economy. This is precisely why the explicit goal is to have a private sector driven economy by the Year 2030. In this regard, we look at our balance of trade. The more imports we have than the exports, the more it creates an unfavourable balance of trade.
“The more exports we have than the imports, the more it becomes a favourable balance of trade. But what is that we are importing as a country? I also define one of the key priorities in terms of NDS1, which is human capital development. To define national sovereignty, it is now about intellectual capacity. What we import is what we cannot produce. It also defines the know-how. We export what we can produce. So this is where the issue of intellectual sovereignty comes into play,” said Minister Muswere.
Minister of State for Manicaland Provincial Affairs and Devolution, Advocate Misheck Mugadza urged the local businesspeople to venture into new enterprises.
“There is no business that is reserved for a certain type of people or group of people. Our businesspeople should access knowledge and know how to run different businesses.
“Manicaland has a lot of opportunities in timber plantations, mining, or tourism, but you find that our people easily venture into small-scale retail business. I feel it is my duty to tell local businesspeople to explore all these other bigger opportunities,” said Minister Mugadza.
During the regional business awards, Better Brands proprietor, Mr Scott Sakupwanya received special recognition, while the businessman of the year award went to Mr Tendai Saurombe.
Earthmoving entrepreneur, Mr Blessing Mangwiro, of Big Rock was the first runner-up, while the businesswoman of the year award went to Ms Susan Peters.
