Published by the government of Zimbabwe
27 November 2008
Harare — THE reappointment of Dr Gideon Gono as Reserve Bank of Zimbabwe Governor for a second five-year term starting next Monday is testimony to his indefatigable efforts to the compelling task of stabilising the economy.
He is starting a new term faced with the monumental challenge of restoring confidence in the country's economy, particularly the financial system.
Indeed, the central bank governor's job is one of the most challenging, as he grapples sanctions, galloping inflation, banking indiscipline, foreign currency and cash shortages among others.
Dr Gono faces the unenviable task of beating the illegal sanctions, which have seen a German company abruptly stopping the supply of a special paper used for printing the local currency.
This has created the cash crisis the country is currently facing. He also needs to continue monitoring the banking sector, where some banks have developed a propensity to stray out of their core business and indulge in fraudulent transactions.
But Dr Gono is not new to challenges, having weathered several storms during his first tenure in office.
He astutely handled the banking crisis, which exploded soon after he entered into office in December 2003.
Many will remember how the crisis left a number of banks closed, while the banking sector's sound footing was restored.
The Governor is very much aware of the fact that we are in a major economic crisis, one that is largely caused by the sanctions, and where there is potential for the crisis to grow in scale and scope with each day.
But we believe he has proved his mettle.
He is a smart and effective professional who is now very familiar with the central bank's operations and knows how to handle crises of any magnitude.
Dr Gono is not afraid of taking responsibility.
In the past, he has acknowledged that his plans to inject billions of dollars in stimulus spending would drive inflation higher, but stressed the long-term benefits of investment in needy areas, such as agricultural mechanisation.
However, his biggest challenge remains that of taming inflation, currently running into several millions. He needs to put in place a framework or systems that recognise early warning signs of financial crises and be able to deal with them.
There will be more perils in Dr Gono's course as he continues to be the centre of attention with his interventions aimed at saving the economy.
He certainly needs the support of all stakeholders of the economy and politicians in this endeavour. We are however, quick to warn him that the risks of being sabotaged exist and he should not be distracted.
But the bottom line is the central bank governor's job is at the moment no place for theorists. The task at hand has no time for persons who make reference to book economics and financial theories.
Since his appointment to the helm of the country's financial nerve centre in 2003, Dr Gono has not wavered on his belief that old orthodoxies need rethinking to confront today's crises.
The fact is, the country's economic perils are clear and immediate, they need practical and circumstantial solutions.
In Dr Gono's own words: "We are in extraordinary circumstances that require extraordinary measures. And failure should not be an option."
We believe the circumstances we find ourselves in need the calibre of the person of Dr Gono, who has a reputation as a heavy-puncher and banking discipline hawk.
Dr Gono fits the bill and deserves a second term. We give him our thumps-up and wish him well.
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