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Prosper Ndlovu and Oliver Kazunga Business Reporters
CLOSE to $6 billion worth of imports found their way into the country without adequate clearance at the borders between 2009 and June this year as leakages at the ports of entry continue. Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya yesterday said rampant indiscipline in business operations was partly to blame for the demise of the country’s economy and urged quick adherence to ethical standards to enhance business confidence.

“We need to move back to basic principles and come up with measures of enhancing business confidence. This economy has high incidence of indiscipline and that is why we had companies that import goods without acquittal.

“About $5,8 billion worth of imports were imported into this economy without acquittal between 2009 and June 2014. Monies are being externalised. So we’re saying that can’t continue happening because some of the challenges we are facing it’s us hurting ourselves. The liquidity problem we’re having could also be stage managed, it’s self inflicted,” said Dr Mangudya.

“I’m pleading with you to adhere to the spirit of corporate governance and develop trust. Let us instill discipline and accountability in the economy and minimise manipulation.”

Economists blame increased imports for stifling domestic production competitiveness, loss of jobs, low liquidity and skyrocketing import bill presently hovering around $4 billion.

Dr Mangudya, who was addressing captains of industry at a Bulawayo hotel, said going back to basics entails a complete turnaround in the manner of doing business and called for collective involvement in developing the economy.

He said the central bank has extended amnesty to non-compliant participants who have been flouting the law but warned deterrent penalties would be imposed on repeat offenders.

“If you imported without the real bill of entry, just write to us so that we pick it from there without questions asked. We’re also saying to companies that went offshore and registered without going through the exchange control, please do so and we are giving them 90 days, that is up to end of November to comply,” Dr Mangudya added.

This, he said, was a necessary step towards attainment of effective collaboration in the execution of various initiatives aimed at economic reconstruction.

He said the solution to the country’s economic challenges lies in increased domestic production, disciplined business operators and adherence to the rule of law.

He urged Zimbabweans to discard the pre-2009 mindset when people were used to making quick money without hard work but to develop the culture of honouring their statutory obligations.

Dr Mangudya said the recent mid-term monetary policy review statement was meant to give direction towards achieving the desired investment confidence and economic growth.

During the meeting participants demanded quick financing of Bulawayo companies, provision of incentives for exports and clarity on the proposed special economic zones.

The discussion also narrowed down on measures to boost the country’s Gross Domestic Product presently pegged at $13 billion and how the economy could share the $5 billion cash circulating in the banking sector from deposits.

Due to low capacity utilisation in the manufacturing sector, Zimbabwe has become a net importer of basic commodities including clothes and footwear products from countries such as South Africa and China.