Greater expectations of foreign currency generation from the manufacturing and the mining sectors will help narrow the gap but not close it.
There has never really been any threat of expulsion, just the hype in some international circles to try and frighten us. The motion would require 85 percent of the total votes.
Concerns, however, remain on the level of the national debt, inflation and lack of investment.
They (IMF) will be very concerned with the upsurge of inflation. The other problem will be that the government still maintains 18 products under price controls.
What is disturbing the industry and other businesses is that the power goes at anytime of the day and this does not enable the industry to plan. Production is affected.
There are going to be major demands for wage increases and thus causing further inflation.
The message should be to encourage foreign investment and they (investors) will obviously not be encouraged by these moves.
I have been speaking to both locals and foreigners at the fair and they believe that although there is a lot wrong with the economy at the moment, change will come eventually and they want to have a presence in Zimbabwe when it does.
There is no doubt the government will have to borrow to finance the salaries and this is destructive economically.
Copyright © 2024 Electric Goat Media. All Rights Reserved.