Former Reserve Bank of Zimbabwe (RBZ) governor Gideon Gono
says the days of the government of national unity (GNU) were “one of the best
economic episodes of our lives”.
Gono (GG), who retired in 2013, made the statements in a
wide-ranging interview with Alpha Media Holdings chairman Trevor Ncube on the
online platform In Conversation with Trevor.
In the two-part series, the former RBZ boss spoke about his
weight loss, professional journey and the need to ensure that the central bank
was independent.
TN: Gideon Gono, former governor of the Reserve Bank of
Zimbabwe, welcome. The last time I saw you, you were jogging around my
neighbourhood.
I think you were carrying an additional 30-25kg, you have
lost all that, what have you done?
People do mistake that kind of garden for prosperity, for
happiness but as one begins to appreciate health more, you begin to associate
that with the number of illnesses one can get.
Obesity is never a blessing for anybody. I had a determination that at the age of 60, I must look at
least 20 years younger.
It had been an aspiration, that, to be fair, had also been
planted in me by the former president whom I was close to and he would always
chastise me.
TN: So what have you done?
GG: It took four phases; you have got to have the mental
ability, stability, and desire to change. I had to start with the diet.
I stopped living to eat and went on to eat to live. Number two, we underestimate the role of sleep in our
lifestyles.
When I had my hanging garden of Babylon, I would wake up
five to six times a night; hardly could put three to four hours of sleep at one
go.
Now, I am sleeping a minimum of a good seven hours. The third and quite important is exercise.
It was a combination of those, none of the three aspects is
more important than the other.
TN: People will always talk. Let’s move to November 29
1959, Buhera, that is when you were born.
Take me back to Buhera and remember how you were raised and
what impact that has had on who Gideon Gono has become.
GG: What I know is, I was born on a Sunday. I am a Sunday
baby.
I am a culmination of experiences that have been impacted
on me principally by my parents who were from a peasant background and
basically, we grew up eight of us in the family, three boys and five girls; it
was discipline, my old man always valued education.
He did something to me, which when you look back, has come
to pass.
The first name that was given to my father is Gavhuna
(governor).
When I tried to enquire why, my father would say his father
wanted him to be a governor. He missed that and it fell on me.
For the 18 years that I was at home, it was a lot of hard
work, honesty and discipline. He also valued education.
TN: What did, starting at the bottom, a humbling space,
serving people, teach you?
GG: It was very humbling, but I learnt a lot.
There are certain behaviours that managers or seniors do to
those that are below them, which I vowed I would never behave like that to
anyone.
I also took time to do the best that I could be with a job.
I vowed I would not die or end my career as a tea maker.
TN: The discipline to work yourself through school resulted
in your having an MBA and then a doctorate from the University of Atlanta after
having your honorary doctorate.
Where does that inspiration, that drive come from?
GG: I would say I am passionate about biographies. I really
read a lot of biographies. I have read over 50 books on other people’s lives.
So, that ambition is a culmination of borrowing from the
balance sheets of several people.
One of the most relevant is Abraham Lincoln. He had failed
several times to run for office but he never gave up — we must never give up.
Today what Zimbabwe would benefit from is to read a book
entitled, A Team of Rivals.
It is no wonder that one of the best economic episodes of
our lives has been during the time we had a team of rivals, the government of
national unity.
TN: God plays an important role in your life, your faith
plays an important role; talk to me about that.
GG: Every day, without fail, when I got to the office as a
tea maker, I would kneel in the office of my boss and say to the old man, I did
not ask to be born.
You are going to make sure that you lead me through a path
that’s going to lead me through a life you have planned for me.
TN: Let’s go straight away to your first big move; you
become the general manager of the Zimbabwe Development Bank, what were the
highlights for you?
GG: I was a chartered secretary so I fitted in the groove
of an administrator, and I filled a human resources person.
The ability to hold all that was what the ZDB valued. ZDB
was in its infancy, we started in 1986, and I joined just six months after it
started.
I was part of the formative aspects; that was a big jump. I
was able to fulfil an ambition that I was going to be a banker.
TN: From then on, you then spent nine years at CBZ, talk to
me about those nine years at CBZ.
GG: I joined CBZ, I was given the job after I completed my
MBA.
Interestingly, and the man who gave me the job is the
current president, His Excellency President Mnangagwa, while he was acting
Finance minister.
The privatisation of CBZ was a major highlight. In June 1998, we listed as CBZ, but more importantly, was
the role of vision for the bank.
CBZ was where all the ills about banking were to be found. Most of the wrongful portfolios belonged to politicians,
who did not want to pay. In 14 days, I convinced the central bank that it could be
turned around.
I said government had no business in having a 100%
shareholding of CBZ. I need a mandate to privatise it.
I did not apply; I was invited to become governor at the
Reserve Bank of Zimbabwe for two terms.
The most difficult period in the history of our country was
during that period because there were a number of challenges that confronted
me.
Zimbabwe had never gone through one single year without
balance of payments support, so put yourself in my shoes.
We then had received about US$2,5 billion from the IMF,
World Bank and African Development Bank as balance of payments support every
year.
By the time I became governor, we had gone for five years
without any balance of payments support.
We also had the war veterans compensation, we were
beginning to have a vibrant opposition, MDC, so it was a conflagration of
forces that were attacking the historically assumed stability of the economy
and we had Zidera in 2001, Tony Blair, George Bush and we had sanctions applied
against the country.
TN: Let me ask you this, do you think that your close
relationship with (former) president Robert Mugabe compromised your ability to
be much more forthright with the authorities?
GG: Actually it helped a lot. When I was at CBZ, I was able
to convince him to be my client; he was always a depositor, never a borrower.
I didn’t compromise, there were limits I had to go; it was
more of persuasion and advisory.
The fact that the central bank is controlled by a line
ministry is a great weakness in itself and I would advocate for the
independence of the central bank, which we don’t have right now and that is the
elephant in the room.
Quasi-fiscal operations were a product of instructions from
government, that’s why we were doing it. I would not do quasi-fiscal
operations.
TN: A lot of people out there are convinced that you are
the creator of quasi-fiscal operations.
GG: It is because they don’t read.
TN: Given the experience you have, what would you do with
the two instruments you have spoken about, were you in a position to change?
GG: I would really overhaul it.
If we can change constitutions but leave subsidiary
legislations untouched, we are scratching the surface.
I would really look at best practices in terms of central
banks. I would take the model of Singapore, the manner in which it does things
is one of the best. We need to remodel the manner in which we do things.
TN: What you are talking about is great but it takes away
power from the politicians, so what do we do?
GG: I have no problem with amendments to constitutions; we
really need to invest a lot of time in building very strong institutions before
we even talk about going to the next elections. Standard
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