President Emmerson Mnangagwa/Bloomberg

Economy

Zimbabwe President says business undermines economic agenda

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The Southern African nation has been struggling with shortages of bread, fuel and foreign currency, with inflation accelerating to almost 67 per cent in March.

Wednesday 01, May 2019

(Bloomberg) --Zimbabwean President Emmerson Mnangagwa accused unpatriotic members of the business community of thwarting the government’s economic programme, saying recent price increases are unjustifiable.

Some price increases can be blamed on the business sector, Mnangagwa said, without giving further details.

“My government will not stand by and leave workers and the generality of our people at the mercy of a small group with rent-seeking profiteering tendencies,” added Mnangagwa.

The annual inflation rate is at its highest since a peak of 500 billion per cent in 2008, which prompted the government to abandon the Zimbabwe dollar a year later.

Bond notes that aren’t accepted outside the country were introduced in 2016 at par value with the US dollar. In February they were converted into what is effectively a new currency known as RTGS$ and have been allowed to gradually devalue on an interbank market.

 

TAGS : President Emmerson Mnangagwa, foreign currency shortage, inflation , budget deficit

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