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Mashudu Netsianda

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Vice President Constantino Chiwenga has said  Zimbabwe’s positive developments in the gold sector and adoption of a floating exchange rate management framework align with the Southern African Development Community’s (SADC) objective of achieving monetary integration in the region.He was speaking during the 59th SADC Committee of Central Bank Governors in Victoria Falls on Thursday evening.

He was speaking during the 59th SADC Committee of Central Bank Governors in Victoria Falls on Thursday evening.

The meeting comes at time when Zimbabwe introduced a new currency, the ZiG through  the Reserve Bank of Zimbabwe monetary policy measures announced by the central bank Governor Dr John Mushayavanhu in April last year.

VP Chiwenga said the ZiG is a home grown solution which is structured to be fully backed by a basket of reserve assets which include gold and other precious minerals  and foreign currency.

” The structured currency has fostered simplicity,  certainty and predictability in Zimbabwe’s monetary and financial affairs. As you may be already know, Zimbabwe has been under illegal sanctions imposed some western countries for over two decades,” he said

The Vice President said the sanctions have created multiple challenges in terms of stabilizing the economy and limiting its growth  potential.

” As a result, we have been unable to access international finance from traditional creditors such as the IMF and the World Bank. This has made it difficult for our country to manage and sustain economic growth and development.  It is worth noting that,  with support from SADC,  the country has remained resilient and vibrant against these challenges, ” he said.

The Vice President said Zimbabwe has managed to come up with home grown solutions to propel industrialization.

“For example, Government has reviewed the education system to a technology driven system with a national curriculum that emphasizes heritage based innovation around technology driven solutions. This transformed education system will address the various technology gaps that exist in the economy across all sectors including those that relate to banking and payment systems,” he said.

The Vice President also commended the Governors for their sterling work  aimed at promoting the SADC regional integration agenda through the regional committee, which he said is pivotal in facilitating the deepening of regional collaboration and cooperation .

On Friday, the Governors will deliberate on financial inclusion and the cost of remittances for Zimbabwe  and many other countries in the SADC region

Diaspora remittances play a critical role in boosting foreign currency inflows to finance economic development

VO Chiwenga urged Governors to ensure that the transmission channels are seamless.