Zimpapers Logo

With bond notes, it is our hope that Zimbabweans, particularly in rural areas who have no access to the US dollars are going to have a huge relief and money will circulate in the economy.

Zimbabwe entered a new economic phase yesterday with the successful introduction of bond notes and coins worth $10 million into daily transactions. The new bond notes are in denominations of $1, $2 and $5.The new notes are part of a $200 million loan facility from the Afrexim Bank, to be introduced into the market as a five percent incentive to exporters and remittances by Diasporans.

Since the introduction of a foreign multiple currency basket in 2009, Zimbabwe has been operating without anything resembling its own currency. The American dollar had become the de facto local currency, until it got scarce on the market.

The bond note is therefore one of the many home-grown solutions to the country’s challenges that the monetary authorities have proposed and this, without doubt, should support Zimbabwe’s export led industrialisation and economic development.

The enthusiasm with which Zimbabweans accepted the bond notes yesterday is testimony that no matter how much one can rely on foreign solutions to local problems, people are eager to embrace what they believe to be their own.

Yes, the US dollar is one of the strongest currencies in the world, but the fact that some unscrupulous local businesspeople and foreigners were exporting the few US dollars our banks were importing, made it economically unsustainable for the country to depend on them solely as a daily medium of transaction. More importantly, local products have become uncompetitive in the region because of the high value of US dollar denominated cost structure.

This resulted in the country having to import American dollars instead of earning them in sufficient quantities through exports of local products.

It is trite that people from many parts of Africa and beyond were now using Zimbabwe as their main source of US dollars by selling cheap import substitutes that did not bring any value to the country.

However, inasmuch as Zimbabweans celebrate the introduction of the bond notes, the country’s detractors are planning daily to find ways of cutting short the benefits.

This therefore, challenges the authorities to ring-fence the bond note so that it is not abused by unscrupulous businesspeople.

There is urgent need to promulgate a legal instrument to ensure that all those found trying to sabotage the bond notes are brought to book and proper punishment meted out.

With bond notes, it is our hope that Zimbabweans, particularly in rural areas who have no access to the US dollars are going to have a huge relief and money will circulate in the economy.

Critical sectors of our economy and major foreign currency earners such as farming have been struggling as players were failing to mobilise cash to pay for essential inputs.

With bond notes, farmers and other critical players in the economy should improve their operations this season.

After having cooperated with the authorities in the introduction of the bonds notes, Zimbabweans can only hope that confidence is built going forward, by maintaining the integrity of the new addition to the basket of currencies already in use.

Unfortunately, starting from last week, we began to witness a wave of price increases where some commodities such as cooking oil and fuel had two prices, with the bond note already devalued. These are clear acts of sabotage which cannot be tolerated.

Zimbabweans need protection from such people who feel that their selfish interests are above national interests. Such people have no place in rebuilding a Zimbabwe that gives equal opportunities to all people regardless of race or political affiliation.

Therefore, as the country eagerly samples the bond notes and their impact on the economy, we believe all Zimbabweans should play ball in a positive spirit. None but ourselves have a duty to build a better future for our children. The future is bright.