Sunday, 24 November 2019

NCUBE : I DID NOT BAN INFLATION FIGURES


Finance and Economic Development Minister Professor Ncube said Government has not banned calculations of annual inflation rate but the actualities would be determined using the monthly inflation figures.

He said accounting rules allowed the use of such a methodology and said the previous methodology was inconsistent owing to variances of currencies that applied in the previous year.

Prof Ncube said this while fielding questions from journalists during a media briefing that was held in Harare  last Friday. “I did not ban inflation figures. We said the year on year on inflation, the methodology we were using was inconsistent because the current regimes were different. We were comparing a US dollar regime which is pre-February 2019 to a Zimbabwean dollar post that date. We have done that before, we are probably the leaders in it in the world, we did it in 2009, there is nothing new, just wait for two months you will get the year on year inflation in February,” said Prof Ncube. 

“There is month on month inflation and the accounting rules allow for the use of month on month inflation indices and accountancy knows this, there is no problem, there is no challenge at all. We expect them (Zimstart) to do their inflation adjusting accounting on the back of the month on month inflation.”

Prof Ncube said Government was determined to fulfil everything that it promised including payment of bonuses for civil servants this month instead of staggering it up to next month.

Turning to industry, Prof Ncube said Government would allow industry to borrow money on the back of guarantee from the State.

“We are proposing something new in industry to support that micro-aspect of industry as a driver of the economy. We are proposing a guarantee scheme for industry to access credit from financial system on the back of a Government guarantee. So we are working on the modalities. This is targeted at retooling and trade financing. Industry is a low hanging fruit, we want industry that is driven by research from our universities and innovation hubs. We will also make sure that industry comes closer to our universities for the research driven industrialisation opportunities.” Herald

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