By Albert Mpofu
In a recent statement, Honourable Tendai Biti, a member of the Citizens Coalition for Change (CCC) and Member of Parliament for Harare East, voiced his assessment and recommendations regarding the policy measures implemented by Zimbabwe’s Minister of Finance, Mthuli Ncube. Biti’s remarks shed light on the growing concerns surrounding the country’s economic stability.
The central focus of Biti’s critique was the Treasury’s assumption of certain powers previously held by the Reserve Bank of Zimbabwe (RBZ). Among the measures, the Treasury under Mthuli Ncube took over the RBZ’s foreign debt and significantly reduced the foreign currency auction to a mere US$5 million.
Biti, expressing his thoughts on Twitter, argued that such actions should have undergone parliamentary debate. He labeled the new measures as illegal, highlighting a sense of desperation, panic, schizophrenia, and cluelessness within the ruling regime. Moreover, he pointed out that the recent moves indicated a major breakdown in the relationship between the Central Bank and the Treasury.
Challenging the government’s de-dollarization strategy, Biti and the CCC have consistently argued that it has failed to yield positive results. Instead, they advocate for a dollarization approach while simultaneously allowing the Zimbabwean dollar (ZW$) to float. Furthermore, they contend that the auction system should be completely abolished, as reducing it to US$5 million would not be effective.
Biti further criticized the RBZ, stating that it has engaged in unauthorized activities and should be replaced by a currency board. He voiced concerns that the newly implemented measures would not curb the RBZ’s involvement in quasi-fiscal activities or illicit gold dealings. He stressed the necessity for more extensive reforms to address these issues.
The Member of Parliament also underscored that assuming RBZ debt without subjecting it to an audit is an act of grand fraud against the people of Zimbabwe. He pointed out that only the Parliament possesses the authority to assume such debt, and the Treasury’s imposition of RBZ debt on taxpayers is both immoral and illegal. Biti accused the RBZ of engaging in extractive behavior and irresponsible borrowing practices.
Biti strongly emphasized the need for a comprehensive and transparent approach to economic management. He criticized the sporadic and ad hoc nature of policy pronouncements made outside of Parliament, arguing that an economy requires consistent rules and certainty to thrive.
In conclusion, Biti presented seven key recommendations to address Zimbabwe’s economic challenges. These include dollarization and floating the Zimbabwean dollar, eliminating export surrender requirements and the auction system, paying workers and pensions in US dollars, pursuing fiscal consolidation, combating corruption, focusing on infrastructure development, and prioritizing decarbonization. He also stressed the significance of conducting free and fair elections to ensure a democratic governance system.
As Zimbabwe grapples with economic uncertainty, Honourable Tendai Biti’s critique of the recent policy measures serves as a call to action for urgent and meaningful reforms. The government now faces the challenge of addressing these concerns and implementing measures that can pave the way for a more stable and prosperous future for the nation.
