Wednesday, 24 April 2019

CHIWENGA THREATENS BUSINESSES


Government has given a stern warning to all those bent on sabotaging the country’s economic turnaround programme through illicit financial dealings.

In his keynote address during the 13th edition of the Economic Consultative Forum and ZITF Company organised ZITF International Business Conference, Vice President Constantino Chiwenga, said that government would not sit back and watch some unscrupulous people spoil the efforts of economically uplifting the country to improve the lives of masses.

“Illicit financial dealings had a negative impact on the efforts by government hence time has come for action to be taken,” he said.

 The Vice President said it was disappointing that some businesses were financing the black market at a time when the Government was making efforts to create a sustainable economic environment.

“The market-based framework for the determination of the exchange rate is expected to facilitate financial sector stability, contain inflationary pressures and build public confidence.

“These objectives will not be attained if individuals and corporates continue to sustain the parallel market through their underground activities,” said Dr Chiwenga.

He said Government will continue fighting the practice and assured the nation that what Government is doing will work.

“ What we’re doing will work and what the financial terrorists are doing won’t work,” said VP Chiwenga.

He also condemned the continued spate of price increases of basic commodities, saying it was unjustified and was driven by sheer speculation.



“The rising inflation, which we’re now experiencing hurts the whole economy and its development prospects.The trend is as a result negatively affecting all of us. It’s now time we engage and openly discuss why as a nation we continue to experience foreign currency shortages yet our foreign currency earnings exceed those of other countries that are not experiencing the same phenomenon,” said VP Chiwenga.

He said Government was committed to engaging its stakeholders to find lasting solutions to the challenges the country is facing.

VP Chiwenga also noted that the manufacturing sector’s capacity utilisation levels had dropped over the years from 70 percent in the 1990s to the current average of 40 percent due to a myriad of challenges including corruption, lack of access to credit lines, ageing technology and foreign currency shortages.

To that end, he said, the Zimbabwe National Industrial Development policy seeks to arrest this downturn and thrust the country onto a firm base for self sustaining development.

VP Chiwenga said to achieve this, Government was forging strong partnerships with the private sector.

“This will assist the Government to collectively implement effective strategies that are essential for boosting production in the economy,” he said.


The Vice President said Government will put in place an enabling infrastructure to anchor industrialisation, technological advancement and appropriate skills development.

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