11 September 2017

Zimbabwe: Zim 'Regaining Its Status As Breadbasket of Southern Africa', Says Mugabe

Photo: The Financial Gazette
Bond coins.

President Robert Mugabe reportedly told a Zanu-PF central committee meeting last week that the country's economy was now recovering despite an on-going cash crisis, says a report.

According to New Zimbabwe.com, Mugabe gave no detail on how the country's economy was recovering but said that the country was regaining its status as the breadbasket of southern Africa.

"We are going to leverage on diamonds and other minerals, alongside agriculture, so that together they drive our economic recovery trajectory. Our economy is slowly on the rebound, I am sure you will agree we are improving," Mugabe was quoted as saying.

Mugabe's utterances came less than three months after the International Monetary Fund issued a bleak assessment of Zimbabwe's economic situation, and advised that government spending on wages and agriculture were unsustainable.

"The expenditure profile tilted towards employment costs and unsustainable agricultural support is inhibiting investments in other priority sectors," the IMF said in a statement in July.

On the streets, the effects of Zimbabwe's economic downturn remained visible in the painfully long queues outside most banks as depositors struggle to withdraw money.

Bond notes, a quasi-currency with an official rate equal to the US dollar, were issued last November to ease cash shortages but have failed to do that.

In its statement, the IMF board warned the government to restore currency confidence to safeguard Zimbabwe's fragile financial sector.


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