News24
18 Apr 2021, 13:10 GMT+10
Zimbabwean President Emmerson Mnangagwa says the "fight is still on" to fix the broken economy, signaling out the financial industry for resisting the economic turnaround efforts.
"We now know whom we are fighting and who is behind them," Mnangagwa said on Saturday in an interview with state-owned Zimbabwe Broadcasting Corporation. "This helps us to bring about the correct instruments to deal with the financial services sector for it to serve this country and not to serve foreign interests." He provided no further details.
The government has accused domestic banks, telecommunications operators and other businesses of making excessive profits off the hard currency it makes available at auctions.
The Zimbabwe dollar now trades at 84 to the US dollar after being pegged at parity just two years ago. Many goods and services including fuel are priced in US dollars or greenback equivalents, placing them out of the reach of most Zimbabweans who earn local currency. Teachers who were paid a minimum of $500 three years ago, now earn the equivalent of $213. The incomes of most workers have also shrunk.
Action by the government to penalise the financial industry may hinder efforts by Finance Minister Mthuli Ncube, who went on a global investor roadshow this week to attract investment.
Mnangagwa has previously issued warnings to private companies he blames for undermining his efforts to turn around an economy plagued by annual inflation of 241% and chronic foreign-currency shortages. The November budget projected that gross domestic product will expand 7.4% this year, a rebound from a 4.1% contraction in 2020 that was attributed to the coronavirus, associated lockdowns and a second successive year of drought. The International Monetary Fund expects 3.1% economic growth this year compared with an earlier forecast of 4.2% expansion.
Last year, his government closed the Zimbabwe Stock Exchange for five weeks and singled out the largest mobile operator, Econet Wireless Zimbabwe, for undermining the nation's currency through its mobile-money service. Econet denied the allegations.
Get a daily dose of Australian Herald news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Australian Herald.
More InformationDOVER, Delaware: California Governor Gavin Newsom has taken legal aim at Fox News, accusing the network of deliberately distorting...
FRANKFURT, Germany: Germany has become the latest country to challenge Chinese AI firm DeepSeek over its data practices, as pressure...
TORONTO, Canada: Harvard University and the University of Toronto have created a backup plan to ensure Harvard graduate students continue...
JERUSALEM, Israel: Israeli Prime Minister Benjamin Netanyahu says that Israel's success in the war with Iran could open the door to...
NEW DELHI, India: India has decided not to allow a United Nations (UN) investigator to join the investigation into the recent Air India...
BONN, Germany: Despite widespread belt-tightening across the United Nations, nearly 200 countries agreed this week to increase the...
SYDNEY, NSW, Australia - , Australian Federal Police (AFP) have shut down a secret drug lab in Sydney's west and seized more than 100kg...
Bridgetown [Barbados], June 30 (ANI): Australia's talismanic batter Steve Smith has come out in defence of batting coach Michael Di...
New Delhi [India], June 30 (ANI): Cricket's fiercest competitors are back in action as Brett Lee, Chris Lynn, and Shaun Marsh lead...
Canberra [Australia], June 30 (ANI): Australian Minister for Foreign Affairs, Penny Wong, on Sunday said that she will visit Washington...
Bridgetown [Barbados], June 30 (ANI): Australia batter Steve Smith remains optimistic about recovering in time to make his return from...
The shift to clean, renewable sources of energy presents a rare opportunity for First Nations people, not only as energy users but...