Zimbabwe: Bring Sanity to Zimabwe’s Economic Situation

DISTURBED by the constant loss of income through devaluation of the local currency over the years, opposition MPs say it is high time the government addresses Zimbabwe’s economic challenges.

President Emmerson Mnangagwa on Wednesday made his State of the Nation Address (SONA) in Parliament.

Following the SONA, Marondera Central MP Caston Matewu said Zimbabweans had suffered for long due to the government’s inability and lack of political will to address economic problems bedevilling Zimbabwe.

This comes after the new gold-backed ZWG currency devalued by 44% last week. The local currency has continued on a downward spiral resulting in price hikes in both goods and services.

“We found the notion that the ZiG was backed by gold and other minerals false. The statement was hollow. We call upon the executive to make sure that they bring sanity to the economic situation in the country.

“Many people are suffering. The government devalued the ZiG after paying civil servants. It means that everyone who was paid what they were paid was cut off.

“To be honest, there was nothing new in that speech. We are not moving as a country. The speech was hollow, nothing inspiring and no new things and nothing to look forward to,” an irate Matewu said in an interview with NewZimbabwe.com.

Mnangagwa committed 50% of mining royalties to support the ZWG which is losing value against the greenback.

“The adoption of the Zimbabwe Gold (ZiG) in April 2024, was an important step towards stabilizing the domestic currency anchored by our gold and precious metal reserves. It remains the duty of all of us to respect and abide by measures and instruments intended to maintain economic stability and tame inflation.

“In response to the increased foreign currency pressures, and in a bid to deepen the foreign exchange market, the Reserve Bank allowed for greater flexibility under the willing-buyer willing-seller arrangement,” said Mnangagwa adding his government noted with concern the resurgence of the parallel market activities driven by “speculative tendencies”.