HARARE: The Movement for Democratic Change (MDC) Renewal Team addressed journalists at their offices in Harare, under the topic, “Structural economy to Regression” which looked into the prevailing state of the economy.
Economic indicators show that the per capita economy is as low as it was in 1958.
In the 2015 national budget presentation; Minister of Finance Patrick Chinamasa admitted that 2 million jobs had been lost whilst 6000 companies had closed shop.
“We are in a very challenging economic environment; industrial sites have become graveyards”, said Tendai Biti MDC Renewal Team Secretary General.
The post Government of National Unity (GNU) period has seen a shrinking in the Zimbabwean economy and this has seen the collapse in social service delivery across the country.
Government should inject cash into meaningful local business’ ventures so as to revamp local industry and boost exports.
Capital investment in local manufacturing and processing industry would boost exports and so correct the in-balance in the countries balance of trade; particularly exports.
Introduction of the United States dollar; multi-currency system in the economy boosted confidence and a handful of foreigners were now willing to engage local businesses.
Dollarization not only saw a boost in local businesses but basic commodities were now available on shop-shelves but the general populace didn’t have enough disposable income to purchase the products.
Government domestic debt has collapsed the financial service sector whilst crowding out capital to the private sector.
Since post independent Zimbabwe; 2014 has been the only year that the government has failed to pay civil servants bonuses in time and has had to shift salary pay dates.
Net revenue inflows to the government have collapsed with a budget deficit in real terms of 30% being recorded in 2014 (the nominal deficit being 9%).
