President Emmerson Mnangagwa has promised to address the current cash crisis saying his administration is seized with the matter and will in due course announce strategies to end the problem.
Addressing various stakeholders at the launch of the Zimbabwe Women Micro Finance Bank (ZWMB), Mnangagwa urged industries to focus on business models that generate foreign currency for the country.
“I am aware of the cash and foreign currency challenges which are a result of various reasons. My Government is seized with the matter and will in due course announce comprehensive strategies to conclusively alleviate the problem,
“Meanwhile, I urge our industry, commerce and SMEs alike to focus on business models that generate foreign currency for the country,” he said.
He further urged the banking sector to resist temptation of exploitative tendencies such as exorbitant bank charges and levies which in the long term dwindles the market confidence and scares depositors away.
“Banks are financial intermediaries which play a pivotal role in the economic recovery process, all facets of our economy thus depend on thriving money and capital markets which provide the necessary concessionary funds to grow our economy,
“My government is working with various bodies including the Reserve Bank of Zimbabwe to ensure that all banks are sound, effective and responsive to the needs of the market, in line with desired national economic growth outcomes,
“Good governance and public confidence in banking sector are prerequisites for any strong financial services sector,” added Mnangagwa.
Speaking at the same event, Reserve Bank of Zimbabwe Governor, Dr John Mangudya said through the micro-finance bank, women are expected to contribute 50% of the country’s GDP.
“The bank provides women with a financial arm for them to do their businesses, women contribute about 80% of the micro institution in this country therefore we expect women to use it to empower yourselves,
“As RBZ, we expect this bank to empower women, provide access to finance and raise income for the women. We want to increase GDP, 60% of the GDP is from micro small medium enterprises (MSMEs) and so is employment. If we employ people we increase GDP, which is the missing link in the economy,
“It is our vision as country that GDP should have increased by 2030, therefore we have only 12 years to ensure that it increases to 3500 per capita per year. That figure is quite high, that means we are looking for GDP that’s between 60-65 billion by 2030 of which we expect women to contribute 50%,” said Mangudya.
Cash crisisDr John MangudyaGDPPresident Emmerson MnangagwaReserve Bank of Zimbabwewomen's bank