I am grateful that the head of the Ministry of Finance at a time like this has been judged by Prof. Mthuli Ncube. I believe that the Minister is well on his way to change the economic footsteps of the country if a favorable climate is created for him. Because this is the season of expectations and everyone in times has a desire to add a few thoughts to the many things that the minister is already thinking about. Like the African saying, one finger does not crush the lice. Here are some of my thoughts:
The government must urgently restore the confidence of domestic and foreign investors in the country. The recovery of investor confidence enables the country to attract a significant part of the global and local investment tail. It is a matter of elementary economy that, without confidence, little or no investment in the economy will be recorded in the economy. How do we build up that confidence in the economy? The safest and probably the simplest starting point for this is working on the convenience of business initiatives. Here are the costs of setting up a company in terms of the financial expenses and the time it takes to have a company incorporate aspects that are well in our power to reconfigure for our own good. The lethargic processing of business activities could be accelerated by introducing a one-stop-shop system that eradicates the multiple office visits before a company can be established. The system should be like what happens in the ports of entry (border posts). In a sense, this is in itself a port of entry, albeit a business boundary. The cost of searches of company names and others may need to be significantly reduced. The argument that these costs are low for a business person are the same arguments that keep our domestic small-scale investors out of the formal system. The large-scale investors are deterred by unnecessary bureaucratic processes. Let's start using the one-stop-shop route for the establishment of companies.
The country remains on the periphery of real investment attraction if it does not take a tirelessly fast fight against corruption as part of its DNA. Corruption frightens investors, as nothing else does. An investor fears that they can easily lose their money if they invest in a corrupt country. Only through the creation of robust institutions that immediately bring all the corrupt elements to book, Zimbabwe can attract real investments. Corruption is like poison that any investment initiative can easily kill. In addition to robust institutions, there must be systems to prevent prosecution and victimization of whistleblowers, such as what happens to me and a colleague where our reputation is fouled by the corrupt malicious publications of our names and photos with arran falsehoods attached to the photo's, simply because we choose to be against corruption. Strangely enough with state resources to slander us like that! As soon as potential whistleblowers realize that there are no systems to protect them, their numbers will decrease by the second and corruption will quickly overtake a significant number of growth engines in the country. Corruption is a form of cancer that needs to be addressed immediately. Leaving feeding can result in economic malaise and morbidity. Once a corrupt person has been identified and his corruption investigated, legal action against that person must be taken immediately and the case must be disseminated by the court to enable this person to be rehabilitated in the prison system of the country.
Import substitution-industrialization (ISI) must also be the ambition of the country. There is an urgent need to revive outdated business models and embrace modern technologies with their corresponding cost savings. Antediluvian business models and methods can not lead the economy to middle income status, no matter how hard the economic agents can work. We have to go with the times. We could attract some of the key players in the sector who are channeling our hard earned foreign currency (through import of the goods from those industries) to our limits.
The boards of directors of state-owned companies should be renewed urgently. Integral men and women must take over the driving of these signs. Integrity must be first in the selection criteria of board members. Many corrupt or corrupt individuals in our state-owned enterprises do us no good. Board members must be appointed to merit. The board members who are tired must retire. Each board member must sign a promise of value addition that requires their integrity, daring and skills at all times and a commitment that they should resign when they are tired. It is high time that board members earn the money they earn. There are a few board members who have no idea what their roles should be in the boards of directors. Some believe that boards are only an appointment to meet their friends and to collect allowances and allowances at the end of the meeting. Many boards are guilty of massive dereliction of duty. The government should adopt a new government, a new mantra for governance in state enterprises. Those members who add value could be retained, but those who are engaged in engaging in state-owned enterprises should be freed from the undeserved burden they place on the land.
Bureaux de change must be re-entered. Black markets create price distortions on every market. The reintroduction of exchange offices formalizes the foreign exchange market. These reduce information asymmetries. When there are formal institutions for currency trading, market forces are given a free hand to play with each other in determining the price of one currency in terms of another. Not everyone wants to hide forex neatly in pillowcases. This is resorting to or standard forex trading because of the fear of running to the money changers on the streets of major cities because of the inherent risk of trading with these unlicensed, and therefore unregulated, money changers. Setting up exchange offices will enable tourists to simply deposit forex in the suitcases of these institutions. Companies would also offer a potentially cheaper source of much-needed foreign currencies. Banks could be forced to reduce their commissions on forex deals as soon as institutions dedicated to forex transactions are reintroduced. With the increased supply of forex, ceteris paribus, price reductions will come. When the price of foreign currencies decreases, the costs of imported inputs also decrease. This is a good omen for cost efficiency that leads to potential price reductions in exports or higher profits if prices are not adjusted. Either way, the economy benefits if someone translates into higher living standards in a circular way or a potential reinvestment of profits.
The bank model of the country must also be revised. Some banking costs do not seem to be in line with the services provided and the state of the economy. Imagine, some banks even charge an entire dollar per page of a bank statement if an account holder happens to need one as a result of the bank's own inefficiencies (for example when you need a statement to go to a shopkeeper to To cancel debit on someone's account for a transaction that has not yet taken place while someone's account was being charged) despite the fact that they would deduct USD 5 per month from a person's account as monthly maintenance costs for the account.
Your Honorable Minister, your work is clearly cut out for you, but finally let me say that if you as a government do not deal quickly and resolutely with corruption, all the economic models that exist and still will never be able to work the country. to save from the economic doldrums in which it is located. When the Chinese leaders decided to take a deadly blow to corruption within its borders, the country began to record huge economic growth spurt. No country has made progress, while the corrupt people are left to prosecute and denigrate those who oppose corruption, as I said before with state resources that should be used better than innocent individuals without taxing corruption. I am confident that you will examine all signs under your control and will renew them all. I hope that this also applies to fellow ministers. We have so many capable men and women of integrity to turn this country into a better fate for ourselves and posterity. May God bless our land so that we may soon be the pearl of Africa that God created our beautiful land to be with all its mineral wealth and enviable human capital, among other things!
Prosper Munyedza MSc B. Ana & Fin (Uni of Leicester), BSc Econ (Hon) (Uni of Zimbabwe).
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