Lelo Nxumalo

Perhaps after Mr. Obama’s job, the second most challenging role is that of the new Zimbabwean Minister of Finance, Tendai Biti. 2008 was one of the most challenging for the Zimbabwean economy, and indeed the global economy. The sharp increase in inflation against a background of acute shortages of goods and services, poor harvests and the attendant severe food shortages and the deteriorating delivery of public services such as water, electricity, sanitation and health imposed phenomenal hardships on the population. Needless to say, in order to decisively achieve economic turnaround, which regrettably would in the short and medium term be painful, cohesion and unity of purpose among the three political parties, and among institutions of government and business, as well as labor, o-operating partners and other stakeholders will be necessary if the country is ever to rebound. The 2009 Budget, presented to parliament at the end of the last fiscal year, seeks to respond to the various c...

Economic policymakers seek to achieve high employment, rapid growth and stable prices. I am most interested in the role of monetary policy – what it can contribute, and most importantly, how it should be conducted to contribute the most. It is a fact that there is strong correlation between central bank independence and effective output stabilization. At the heart of Zimbabwe’s economic meltdown is a central bank that has amassed a plethora of controls that go beyond its remit. Substantial quasi-fiscal activities by the Reserve Bank of Zimbabwe (RBZ) have been at the core of the country’s headline-making hyperinflation. Such activities include subsidies made to loss making government-owned enterprises, price supports given to some export sectors, and the interest payments made on open market operations. These activities have eroded the bank’s ability to conduct monetary policy. The RBZ’s solution – printing more money, and freezing prices and wages – has been like pouring water on...

By Rejoice Ngwenya in Zimbabwe Humans of the civilized world cannot fathom how on earth an average citizen survives in Zimbabwe. What with an inflation rate of more than ten million percent, a completely worthless currency and empty supermarket shelves, Darwinian adventure, Cesarean courage and Bonapartean arrogance can be the only vital ingredients in my daily survival kit. My day starts with a fire in the gazebo to warm a bucket of bathing water. Electricity is usually down and with a water system that collapsed six months ago, running water is a thing of the past. Zimbabwe National Water Authority has a repertoire of excuses why the precious liquid deserted my home. I have stopped asking. Water bills do come, but there are no penalties for ignoring them. In fact, deliberately ignoring water bills has become to me, an act of satisfying sweet revenge! Electricity does appear once in a while, but the risk of relying on stove-heated water is much too high, if I have to guarantee g...

I just read through the Agreement and it sounds promising. Having studied the history of policy making in Zimbabwe, I am however curious as to how much gap there is going to be between the actual agreement and what is implemented. The agreement does address issues such as depoliticizing the National Youth Service, which has for long been abused to further ZANU PF’s agenda, mainly in the rural areas. The agreement also states that the Prime Minister, Morgan Tsvangirai will be part of the national Security Council, of which Mugabe is the chair. It should be remembered that this is the very machinery that masterminded the intimidation of the Movement for Democratic Change in the run up to the election. I look forward to seeing how this is going to play out. My other bone of contention is the number of bodies in the executive branch; President Mugabe and two Vice Presidents, Prime Minister Tsvangirai and 2 Deputy Prime Ministers, making a grand total of 6 officers in the executive bran...