Zimpapers Logo

This talk almost walked the talk during the 2009/10 budget statement and ensuing policy reviews but for the last mid-term fiscal policy statement.

The various financial institutions in the country got caught up in this hysteria that some of those on e-banking started sending their customers bank balances on their Zimbabwe dollar accounts.

This generated a lot of interest in various circles of the economy that have had their lifetime savings stashed away at the banks and have no clue as to what to make of the now seemingly useless currency.

Various conversion rates were thrown around and even the country’s various statutory authorities were reportedly mooting recovering unpaid dues of 2008 and yesteryear basing on certain conversion rates to the now official United States of America dollar.

Since February 2009, the fiscal and monetary policy statements that have been pronounced, but for the last mid-term policy review, alluded to the fate of the Zimbabwe dollar amounts held at various banks. There were even budgetary figures that were thrown around earmarked to mop up these bank balances, in a programme Finance Minister, Tendai Biti, termed the demonetisation programme.

It is important to note that demonetisation programme hype was all too often loud when the prospects for donor driven economic recovery looked all very bright and high.

However, when the minister’s sojourn to the Americas obtained only nothing but the true reality that none, but our selves, and alone, would provide own resources for the resuscitation of our decade long battered economy, the demonetisation hype, and programme died a death. The Minister acknowledged this to the nation and it appears everyone understood this.

Anyway, with level of conscientisation on nationhood and the effect on ubuntu that derives from donor funding, this was to be expected. Zimbabweans are a proud nation.

Now comes the Chiyadzwa window!

This window has revitalised the expectations of this nation. Every sector and section of this nation society is awakening to this existence of abundance and of its ability to spur itself from the doldrums that had become known as Zimbabwe. This opportunity for self-financing has refracted everyone’s eye towards the outcome of Canadile, Mbada et al activities in the valleys and mountains of Manicaland.

When, then, the question was on the morality of having another man finance your family’s food on the table, and the ability of that man anyway, now the feeling of de javu is with us. That was for real and how one can access the cake of Chiyadzwa, and eat it too?

Where before savers were told of the lack of resources to finance the demonetisation programme, now they could legitimately be justified to expect the government to put the matter to rest. What better opportunity for the government to legally inject into the gross national expenditure function, and legally spread accessibility of the rubble-rouser Chiyadzwa cake than this.

This nation’s expenditure ability needs a lot of injection and nudging and the resuscitation of the demonetisation programme is the perfect legal way of dishing out the Chiyadzwa “cup”.

Even gogo vari kuJambezi will later give testimony that barcossi yeChiyadzwa vakairavirawo. We may whip producers and industry to increase capacity but this can remain arrested by the lack of concurrent ability to expend. That is the lack of market to absorb the supplied goods and services.

Yes, the people of Chiyadzwa can directly benefit from the diamond mining through employment created in the mines in their backyards as well as downstream industries, just as the people of Monde, Chisuma and Sizinda benefit from tourism and the ensuing support industries and activities in Victoria Falls.

Yes the civil servants stand a good and real chance on the new national find through a direct allocation from the national fiscus and treasury injection into the Salaries Services Bureau.

Even the sporadic illegal miners can still continue snatching a cup or two of the diamonds. Even the generality of the economy will benefit through direct and indirect consumption of the enhanced national public good created through public and national projects such as public infrastructure construction such as roads and the New Diamond Centre in Mt Hampden, and even painting of trees in the capital should we attract other NAM/CHOGM magnitude retreats of yesteryear.

However, the individual in the street in Mkhosana, Victoria Falls, at Jambezi or Mutawatawa business centres, or even Sekuru vaShingie in Chivhu still need to be pacified through this new national resource because long after the political leadership of this country replaced the ploughshares for the political polarisation that devoured this nation, the emergency of the Chiyadzwa diamond as panacea for refinancing this economy continued to attract unwanted and unwarranted attention on Zimbabwe.

With it the tourism numbers just could not swell up. The projected economic growth rates could only be revised downwards. The liquidity crunch continued to haunt every facet of this economy. All savings were wiped out and the chance to re-grow these remained a twilight reminiscing. All these stakeholders will justifiably claim that “madhayimonzi aya taka’afirawo,” said a Cde, “Cadres died to liberate this country diamonds included.”

The demonetisation of what ever is being held at the banks is a real and legitimate way of closing the chapter on the Zimbabwe dollar as well as ensuring that the perceived bottomless diamond pit is cascaded and broadcast as wide as possible.

Remember there were policy pronouncements to the effect that as long as there were tax receipts matching the bank deposits then those earnings and deposits were legitimate. There is a legitimate claim on the stake by the deposit holders and this has to be resolved. We can not wish it away.

We spoke of demonetisation even when did not have resources of our own. It might then beat the mind if, now with expose to own resources, we no longer think that a solution is necessary to this national problem. One need not even go into the multiplier and accelerator theories to show the ripple effects in the economy should aggregate demand be spurred a bit by that direct and legitimate injection into peoples’ disposable cash hold — lest one becomes bookish.

The gravitating new fiscal year budget statement is the best possible time for the minister to give a bonus to the long toiling masses of Zimbabwe who have stood by their nation and economy regardless.

The farming season is with us already, the more than 160 000 civil servants went well into 2009 on Zimbabwe dollar salaries, RBZ workers until very recently continue to have their salaries denominate in Zimbabwe dollars save for allowances.

What better way to motivate all these than through the demonetisation programme in addition to the long awaited salary adjustments that will well attract back skills into the public sector?

Looking back with all what we went through Zimbabweans I salute you.

Compare and contrast South Africa and Mozambique and the barricading and gun-fires and closure of embassy in Mozambique over bread.

Anyway this is just food for thought. But this is good chance for the government to thank the people of Zimbabwe for standing by being Zimbabwean!

Nevison is an independent economist.