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Business Mischief Invites Tough Policy Measures - ED

Business Mischief Invites Tough Policy Measures - ED

President Emmerson Mnangagwa said the government’s recent adoption of tough economic measures was in response to the wayward behaviour of some economic players which had led to sharp price increases and exchange rate volatility.

In May, the Reserve Bank of Zimbabwe (RBZ) ordered banks to temporarily stop lending and also introduced a forex transaction tax.

Recently, the central bank increased interest rates to 200 per cent to curb speculative borrowing and announced the planned introduction of gold coins to ease US dollar demand.

President Mnangagwa had a meeting with the business community dubbed “Listening President Business Luncheon” in Kwekwe on Friday.

Responding to a contribution by Dendairy managing director, Darren Coetzee, who had complained about RBZ raising its main policy rate to 200 per cent, Mnangagwa said:

You complained about the 200 per cent interest rate. It’s intended to cure misbehaviour by the financial sector.

Banks were formed to lend to people, but they engaged in mischief that was affecting the economy.

We closed lending for eight days and within those days we discovered the rot in the banks. Out of the 16 banks, only four passed the test. Others were in deep corruption.

After we found the rot in the banking sector, there were two possibilities, one to expose them and the other to punish them.

We could not punish them because you (clients) were going to withdraw all your money from those banks and they would fold.

So, the banks pleaded with us to just punish them outside of the eyes of the public and that is what we are doing to them.

Mnangagwa said people should focus on what he called the good things which his government has done instead of crying about challenges. He added:

Some of the policies are aimed at protecting the members of the public from mischievous individuals and syndicates sabotaging the people’s way of life.

When we said ‘Zimbabwe is open for business’, we didn’t say it’s open to mischief or corruption.

But there are people, a sizable number of people in the economy who are mischievous and we are putting in place measures to stop them.

More: The Herald

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kid 4 weeks ago

am a 1 year old
i wondering which policies is he talking about

otherwise his policies are the one that are main cause of sharp rise of prices

Angry Man 4 weeks ago

Nxaaa lowu ngu M.d.i.d.i wo president, vele 2018 akuwinanga kwangena ngomkoto lokhu.

Oskid 4 weeks ago

Zvaramba zvekutonga vanhu vanoda kutungamirwa these threats and finger pointing will never save you fro the upcoming slaughter.U are finished just fire Mthuli and Mangundya pamwe tingamboterera zvamotaura bambo

factos 4 weeks ago

i urge my fellow Zimbabweans never vote for a donkey and expect good results.

please vote Chimisa because ED Mhaya

Gafa 4 weeks ago

True what is only left for yu to bring trust in Zimbabwean populace is to fire Mangundya and Mthuli then yu may start ccampaigning

Jah🇿🇼Tsvarie-07 4 weeks ago

Punish them outside the eyes of the public 😂 that tells us it involves some big guys 🤔

Oskid 4 weeks ago

Ndiwe wakazvikanyira wega nyaya yokuzviedza gamba iyi kkkk zvarema manje.Bate chino tsvee bate chino tsvee zvava kupisa kkkkkk

observer 4 weeks ago

kikikikiki ndatsheka zwhangu


Dzvamu 4 weeks ago

Zero =zero hapana zvozivikanwawo apa kkkkkk. Ko kungobvisa bond zvinei? Kumubvunza ipapa kuti akapedzisira kubata mabond riini we will be shocked.

c 4 weeks ago

CCC real change

Citizen 4 weeks ago

We will punish you 2023 publicly in a vote of no confidence.

Vote CCC2023 for change.

Muntuza 4 weeks ago

Yass, we might blame Ed for all this rot, but our business guruz have a gargantuan appetite for money, profiteering is their norm. At least Ed akagadzira hake kashamu kanemunyu oisa paside. Its bad ,what they are doing....chinkwa choita 1000 nhai house maid echitambira 10000, it doesn't balance. Siwitsi lollypop 100 bond, guys where are we heading to.

Majority Rule 4 weeks ago

Tough policies, meaning catch and release policies

totito 4 weeks ago

Tough policies chase away good business

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