“There have been other worrying signs. At the weekend, in a column for the Sunday Mail, Mnangagwa declared that illegal foreign currency trade had become a "security issue". Mangudya was also quoted in the press warning private companies illegally buying forex on the black market,” reported newZWire.
“The Reserve Bank is increasingly unable to meet the forex demands of local companies, with the forex payments backlog at over $600 million. Mining firm RioZim has taken the unusual step of threatening a lawsuit because the central bank is not meeting its pledges to provide forex. Threats from Mnangagwa and Mangudya are therefore clearly out-of-place, as they both know there wouldn't be a black market if there was enough forex to go around.”
“The Reserve Bank is increasingly unable to meet the forex demands of local companies, with the forex payments backlog at over $600 million. Mining firm RioZim has taken the unusual step of threatening a lawsuit because the central bank is not meeting its pledges to provide forex. Threats from Mnangagwa and Mangudya are therefore clearly out-of-place, as they both know there wouldn't be a black market if there was enough forex to go around.”
NewZWire is 100% correct there; of course, there would be no black market trading in foreign currency if there was no forex shortage.
Indeed, it is nonsense to call it a black market. Zimbabwe is using a multi-currency system and therefore everyone is free to trade in anyone of the many currencies. Note, this free trade includes trading in the different currencies themselves. Until 2009 the Z$ was the only legal currency and only authorised dealers were allowed to sell and buy all other foreign currency.
“Mnangagwa has sold himself at home and abroad as the "steady and firm hand" that the country needs,” continued NewZWire report.
“Mnangagwa has sold himself at home and abroad as the "steady and firm hand" that the country needs,” continued NewZWire report.
Yes, he did but has already proven that he is not to be trusted. Mnangagwa promised to end corruption and has done very little about it. Like Mugabe before him, he has proven to be a reckless spender. Zimbabwe’s present forex shortage resulting in the shortage of basic commodities such as food, fuel and drugs is Mnangagwa’s own making in that ever since coming to power he has been spending money on new cars for Chiefs and Zanu PF officials, he squandered $1.4 million on a chartered plane for Grace Mugabe, etc.
When Mnangagwa failed to hold free, fair and credible election, as promised, that was the last straw that broke the camel’s back as far as the international community and the would-be investors and lenders were concerned.
He and his cronies can continued to crow “Zimbabwe is open for business!” in their colourful trademark scarfs. They are just wasting their breathe; the much hoped for flood of investors they are expecting would never happen. Investors do not do business in a pariah state in which the next regime change has to be yet another military coup or violent street protests.
By Jeff Kurai Chakanyuka
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