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ED's Bank Lending Ban Linked To ZANU PF Internal Dynamics

ED's Bank Lending Ban Linked To ZANU PF Internal Dynamics

ZANU PF insiders say President Emmerson Mnangagwa’s move to suspend bank lending was motivated by internal power dynamics in ZANU PF and the fear of losing the 2023 elections to a resurgent opposition.

The ruling party is scheduled to hold its congress later this year and there is speculation that Mnangagwa could be challenged by his deputy Constantino Chiwenga.

ZANU PF insiders who spoke to The Standard claimed that on one hand, Mnangagwa suspects his colleagues are sabotaging him while on the other, he fears the newly formed Citizens Coalition for Change (CCC). Said a senior ZANU PF member:

Mnangagwa’s measures were calculated to deal with the pressure he is facing internally over the state of the economy.

There are a lot of dynamics at play with the upcoming congress and growing fears that CCC is gaining ground against ZANU PF.

There is also the constant fear that the president is being sabotaged by enemies from within and outside the party.

On Saturday, 7 May, Mnangagwa issued a decree stopping banks from lending activities or offering credit lines to businesses and individuals.

Thereafter, Mnangagwa met the owners of companies that authorities blame for the exchange rate volatility.

Confederation of Zimbabwe Industries (CZI) president Kurai Matsheza confirmed to The Standard that they met Mnangagwa last week. Matsheza said:

We engaged the president and we are expecting the best outcome from those deliberations.

The engagement process is still ongoing and when we have finished the talk, the result will be publicised.

We are glad that he allowed us to meet him to talk about such issues affecting the industries.

Meanwhile, Victor Bhoroma, a Harare based economist, blamed corruption for the country’s economic challenges. Said Boroma:

The real causes of the economic failures we are witnessing today have their roots in the central bank.

The bank has no independence from political interference and has zero willingness to allow market forces to determine the price of foreign currency.

In 2019, the Government reintroduced the Zimbabwe dollar but the local currency has been losing value rapidly over the past few months.

More: The Standard

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9 Comments

Jah🇿🇼Tsvarie-07 1 month ago

Central Bank is the main cause that's very true coz its not independent...


ABSA 1 month ago

Why fearing Mr President just retire peacefuly makangogadzwa through a coup they didn't like you in zanupf G40 still exist


Victoria Leeds 1 month ago

The ruling party is scheduled to hold its congress later this year and there is speculation that Mnangagwa could be challenged by his deputy Constantino Chiwenga. Ndiyo problem ye politics too much speculation iye jenerari ngaabude pachena ega kwete kuuya ku public achiti we are united, vanhu vaneta nazvo. However iyo ye ban haa hatina kwatiri kuenda until you start to listen and do what citizens need. Pass on the button kwete kuda kumhanya relay uriwega


Asalif 1 month ago

vakamuisa ipapo vanongomubvisa it is one and the same thing because he's a failure they can not just look at him crippling the country


Yebo yellow 1 month ago

chinyika chaora ichi hachichadi matakarwa hondo


Ngaapinde hake mkomana 1 month ago

dai angoretire nguva ichiripo coz achasvasvangwa naNero zvisati zvamboonekwa muhistory yemuzimbabwe kusvika ati bhu-u bhu-u


mukuru wema Chiefs 1 month ago

Chamisa will garner 10 million votes this years


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Chimboti Pizza 1 month ago

He better sleep with one eye open😂

Anyway vhoterai Chamisa vanhu woye



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