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Victoria Ruzvidzo Business Focus
Granted, the multi-currency system has a few disadvantages that Zimbabwe has had to contend with over the past four and a half years but to suggest that the challenges this economy is experiencing presently are a result of that system of transaction is not exactly a correct assessment of the economy.

I, therefore, humbly beg to differ with your assertions Finance Minister Patrick Chinamasa, Sir.
Giving evidence on the state of the economy to the Parliamentary Portfolio Committee on Finance and Economic Development on Monday, Minister Chinamasa said the multi-currency regime had caused increases in prices and led to the pegging of salaries at unsustainably high levels, among other economic ills.

He implied Zimbabwe was better off without the multi-currency system. Really?
Of course we all love our Zimbabwe dollar, our own local currency and we are spoiling for a day when all the economic fundamentals will come right, creating an environment to sustain re-introduction of the local currency.

Of course we said it that the Finance brief was never going to be a stroll in the park for Minister Chinamasa given the challenges at hand but in his quest to explain away current challenges I think the good minister is a bit off tangent.

Ironically he is the one who introduced the multi-currency system in January 2009, telling us all that this new system would restore the economy to its former glory.

At that point Zimbabwe was experiencing serious challenges emanating largely from the hyper-inflationary environment that saw the dollar losing value every micro-second while supermarket shelves rapidly became empty. Those were the days when people would flock to South Africa and other neighbouring countries to buy bread and other foodstuffs.

I remember vividly how people would just join any queue they saw forming because they were desperate to buy anything that was available at that time.

But we thank God that this mayhem was effectively halted when the multi-currency system was introduced. Inflation was tamed, supermarket shelves gradually filled up while confidence was restored.

The multi-currency system also brought stability and predictability in the economy and we saw increased interest from foreign investors and other partners that had dismissed this country as a basket case.

Multi-lateral and bi-lateral institutions have slowly begun to befriend this country as the economy seeks to recover.
And true to what had been expected, the economy did post positive growth figures in four successive years after dollarisation.
In 2009, it grew by 5,4 percent, in 2010 by 11,4 percent while 2011 achieved the highest growth at 11,9 percent.

In 2012 Zimbabwe recorded a GDP growth of 10,6 before a sudden drop to 3,4 percent last year.
The real GDP growth was obviously a result of the dollarisation. The fact that the economy could afford double-digit growth should speak to the benefits of the new system of transaction. Therefore, there must be other explanations why the benefits have now been overwhelmed by negative currents prevailing in the economy.

Minister Chinamasa Sir, the reasons why the economy finds itself in this state today have to do with such issues as corruption, policy inconsistencies, lack of proper buy-in to national programmes among other factors.

Zimbabwe has over the past few years lost billions of dollars through corruption in its many forms. President Mugabe has on more than one occasion highlighted instances when potential investors have been roughed up by some politicians that demand kickbacks to process applications by investors.

Just imagine the harm this has done to our image. How many investors have been turned away as a result of the bribes that obviously add to the costs of starting a business in this country?

How many decided to take their project elsewhere after seeing that this country was not penetrable unless certain hands were oiled.
This is one reason why we have not generated more jobs, wealth and other goodies that come with increased FDI.

Furthermore, the mineral-rich country has not benefited significantly from the minerals in its belly because a significant chunk has been smuggled out on a daily basis.

We hear of helicopters and private jets that are busy transporting our riches to unknown destinations. Billions of dollars have been lost in the process.

Furthermore, how many tenders have been awarded to friends and relatives who have produced shoddy work thus compromising service delivery and efficient production processes.

A friend of a friend with a relative working in a strategic position manages to secure a tender and yet they do not know the first thing about the particular work that they are supposed to carry out.

Millions have turned into billions that have benefited a few individuals, leaving the entire nation at their mercy.
Foreign investors and even local businesses thrive in an environment of policy consistency but over the past few years we have had certain policies that mean something on paper and sometimes the exact opposite when implemented.

There is need for coherence and cohesion in terms of policy guiding the economy. Investors need to flock to an economy where they are assured that policies will be respected and adhered to.

Furthermore, we have seen small-scale farmers being elbowed out of the market by imports.
For instance, truckloads of tomatoes, onions and other vegetables find their way to major markets from such countries as South Africa where production costs are very low.

Resultantly, local farmers have had to sell their produce at a loss, thus constraining their ability to finance future production or to service their loans. This scenario compounds the state of affairs and touches on one of the major economic pillars-agriculture.

Had things been done differently in terms of the production and marketing matrices, Zimbabwe would by now have had its regional breadbasket status restored.

Farmers have the energy but they are frustrated by the factors at play at the marketplace.
Furthermore, Zimbabwe is also losing billions through imports of trinkets.

Failure to recapitalise by most firms have impacted on their production capacity hence the growing imports.
A sad reality is that Zimbabwe continues to lose millions of dollars as containers belonging to certain nationals are not subject to customs duty payments.

Tonnes upon tonnes of cheap clothing and other items are being brought in at no charge thus depriving treasury of funds it desperately needs.
These compete on the market with small traders or cross-boarder traders who endure long hours at the border post and are made to pay high duties which, in some instances, are more than the price they bought some of the items.

This uneven playing field, where foreigners seem to have their way while locals are subjected to harsh trading conditions, impacts the GDP negatively.

There is so much happening in this economy that has put paid to initiatives to restore the economy.
Yes Minister, the US dollar is undervalued in this country and the consumer is on the receiving end but overall, the factors highlighted below and many others that have not found space today have combined to fend off efforts to restore the economy.

While exogenous factors such as the illegal economic sanctions imposed by the West have affected the economy in a big way, self-introspection on our part will help us realise that individually and collectively we have done things and made certain decisions that haunt us today.
Lets strive to eliminate all these forms and see where we will go.

Certainly we would want the local currency back, not as an emotional decision but at a time it makes economic sense to do so.
The earlier the better but the catch phrase is: at the most appropriate time.

In the meantime, the greediness that has led to overpricing of products and services needs to be put in check to ensure the already vulnerable consumer is not squeezed further.

As Zimbabweans, we need to adopt a prosper-thy-neighbour mentality that will natural put a check to our greedy and corrupt mentality.
Zimbabwe is richly endowed with natural resources and we have the skills and expertise.

Such a combination has the potential to produce a better economy in which we all live happily even in a dollarised economy.

In God I Trust!

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