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Minister Patrick Chinamasa

Morris Mpala, MoB Capital Ltd
THE Minister of Finance and Economic Development Patrick Chinamasa’s statement has a tone of ‘ Business Unusual”. It’s an honest appeal for greater good will among all Zimbabwean stakeholders to work and pull together, walk the talk, walk together and an apology for past policy inconsistencies and asking to be trusted in building bridges within and without the Zimbabwe borders. The general idea is to instil financial discipline, accountability and responsible spending tendencies while trying to grow and share the cake equally, which is the cornerstone for existence.

Positives

Move to curtail expenditure through reducing travel expenses, perks and freebies, reduction in foreign functions, civil servants rationalisation will free funds for projects development. We pray that the performance appraisal being introduced will bring accountability and responsible tendencies especially in the public domain. Re-engaging of international stakeholders and commitment to settling arrears is commendable. We do not live in a vacuum. The budget deficit is still a major worry and it being financed through local borrowing that crowds the private sector is still a major headache. Treasury Bills should be monitored religiously to instil confidence and trust that Government settles their financial obligations on time. The commitment to settle international obligations is commendable.

Bonus payment morally right but not economically right given elections are beckoning. Amnesty on illegal externalisations and cash barons meant to alleviate liquidity and cash challenges. The tax incentives are good news to economic actors. Property rights and application of the enacted laws should be applied across the board. Special Economic Zones (SEZs) expedience with export inclinations is the future. There is still a need for further consultations on this grey area. It’s an area that is misunderstood and the lackadaisical approach to coming up with an exhaustive and fool proof model on this inclination is worrying. Time is money.

The review of the indigenisation law is the way to go to encourage FDIs but this has to be detailed, communicated and put into law like yesterday.

Personally, I feel 100 percent is too much, my recommendation is still 30 percent for locals. That being said reserved sectors have to be strictly for locals only without any waivers. We pray this is an era that brings an end to policy inconsistencies both in public and private sector. I have a feeling Minister Chinamasa went all out on austerity measures but was afraid of the culture shock thereafter that could have derailed his initiatives through resistance to change within and without Government structures.

Budget shortcomings
It doesn’t touch anything on cancer initiatives given cancer is the number one killer before HIV and Aids and its straining social services. Prevention will be better than cure. 99-year lease is still a critical component of manufacturing, which is production. Government, bankers and beneficiaries should get on the negotiating table and thrash outstanding sticking points. The Zambezi Water Project — the ultimate solution to Matabeleland was overlooked. Ghost workers were not dealt with decisively and there is more ground to cover on this front. The minister should say no to budget deficit. We need to eat what we kill. Ring-fence people’s bank balances to bring about trust and confidence in the main stream financial services sector.

Gradually abandon bond notes usage while encouraging confidence and trust into the economy. Audit diamond revenues from 2006 and account for revenues derived from that sector. We need to deal with cost drivers — utilities, salaries/perks and fuel. Internal devaluation will go a long way in addressing the high cost of products and services. The long term strategy is to make Zimbabwe a relatively low cost producer or have unique products/services where the market would be a price taker. Let us involve the Diaspora and the retired human capital to address skills shortage.

The Ministry of Finance needs to give regular, factual updates on targets, budgets and variances plus remedial action religiously no matter how bad the figures could be. Time to usher in a new culture of doing Government business but only with time can we judge if the nation is ready to take off. There is a need to increase implementation, work together and seek knowledge. Above all let us weed out corruption, which is a giant in the room. We have to address the economic inequality in our communities and narrow the gap between the haves and have nots. Ask not what the Government can do for you but what can you do for the country. Merry Xmas please do spend responsibly. The New Year has a lot of financial obligations.

IF YOU LIVE IN BYO PLEASE CONSERVE WATER
IF YOU LIVE IN ZIMBABWE PLEASE USE ELECTRICITY SPARINGLY: SOS (SWITCH OFF SWITCHES)
IF YOU LIVE ON PLANET EARTH PLEASE PRESERVE THE ENVIRONMENT

Morris Mpala is the managing director of MoB Capital Limited, a Bulawayo-headquartered micro-finance institution with foot print across the country.