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Pres Mnangagwa Again Says New Currency In Months, Reason: We Want To Be Like Others

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President Emmerson Mnangagwa is in Maputo, Mozambique attending the US-Africa Business Summit. He spoke to Bloomberg on the sidelines of the summit.

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In that interview, the president again talked about introducing a new currency in Zimbabwe within months. He said:

It is necessary that we have our own currency. I have faith that we’ll achieve that even before the end of the year or by the first quarter of next year.

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The reason

Sometimes President Mnangagwa innocently says things that make people question whether he appreciates important issues. Here’s a quote from The Herald:

I am not aware of any country which has no currency of its own, but that is not my field – I am a lawyer – but I am told that except for Zimbabwe I haven’t been told of another country which doesn’t have its own currency. Even poor countries have currencies from what I hear, so we intend to introduce our own

This is a disappointing motivation for the head of state to give for something so significant.

Faith in Mthuli Ncube

President Mnangagwa’s strategy for the economy seems to be: trust Finance Minister Mthuli Ncube:

I’ve been in government for 38 years as minister and I can’t remember when you ever had a budget surplus. Now, this young man has been able to achieve a budget surplus in less than eight months. So it tells me that what he tells me is possibly true on these issues.

Nothing wrong with that trust actually. He appointed him so it’s important that he trusts him and give him room to work. The hope though is that the president has delegated authority to his minister and not abdicated responsibility for the economy altogether. Well the only other ‘concerning thing’ is that he calls a 56 year old man a young man.

Looks like this happened sooner than expected. Effective 24 June 2019, the Zim dollar is back

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56 thoughts on “Pres Mnangagwa Again Says New Currency In Months, Reason: We Want To Be Like Others

  1. Someone in the government for 38yrs he must also corrupt Zimbabwe need a someone who can transform the country not an old man, with same mentality

  2. The ED era started well. Soldiers, Zanu PF and MDC embraced each other at the fall of Mugabe government. Free campaigns, free voting, and free observer mission participation. ED came as a darling of the international community on the death certificate of a Mugabe government. This election was an opportunity Zimbabwe was supposed to end its isolation. From a militarized Mugabe era to a new era of great democracy and freedom. Zanu PF had re-found its path. A new dispensation! Zimbabwe was open for business. We all thought! I had heard ED’s vision for a new Zimbabwe. It was brilliant, brilliant to the extent of making Jonathan Moyo and Patrick Zhuwawo angry. In the run up to elections, ED worked 24/7 to change the culture and image of Zimbabwe. He engaged the international community, got promises from investors. Suddenly, things went terribly wrong! What went wrong? Problems started with ZEC’s unsteady utterances and unsolid preparations. Things also went bad with the way ZEC officials conducted themselves and announced results. The international community was watching. Suspicion started. And things went very terribly wrong with the August 1 killings. Yes demonstrators could have been violent, but was it necessary to deploy the army? Even if one was seen setting cars on fire, did he/she deserve to die? In the full glare of the international community six lives were lost following a brutal crackdown by the military. In the full glare of international observers, police invaded an MDC press conference! The government propaganda machinery got it all wrong. Mixed orders. Mixed commands! All the effort by ED to engage the world, to change Zimbabwe’s image, to woo investors, to open Zimbabwe for business came crumbling down like a ton of bricks! The dawn of a new Zimbabwe became the dusk of an unwanted chaotic Zimbabwe in a split of a second. The handling of the January 12-17 demonstrations was a nail in Zimbabwe’s coffin. Zimbabwe was doomed. ED changed his approach! It is now politics of ED government survival! We can describe the failure of our government by cosmetic vocabulary…’the pain of austerity measures’, …’from the pain of a mother in labour comes a bouncing baby’…etc. We cannot tell the people to abandon cars and go for bicycles because there is no fuel while we drive the ML63s….we cannot tell people to eat porridge for breakfast because they is no bread while we have bacon and eggs for breakfast….we cannot pretend to love Zimbabwe when we fly outside the country for treatment using public funds while the poor die in the death camps the drugless Harare hospital has become. We cannot be the party peripherals for toyi-toyi and RTGS while some party gurus line up their pockets with real money. No! No! No!

  3. It seems the current president of zimbabwe and his team do not have the solution to the country’s economic woes.Printing worthless currency the way and manner Mugabe did some years ago will not do the people of zimbabwe any good rather you end up encouraging hyperinflation thereby causing more suffering for the people. ED pls go back to the drawing board and do the needful.The people Of ZB should look for a more younger president to pilot the affairs of the country and do away with these old myopic half wits who do not have any reasonable thing to offer.

    1. I was in Harare a fwe days ago. Mnangagwa is doing a good job for sure.Afcause disunity is failing the country. He has cleaned Harare and continues to repair it. Zupco is back. Its slow but I think Zimbabwe will rise again.

      1. Nkata is blind hake, but iwe regular uri imbwa yemunhu. You’re the kind of rubbish we don’t need in this country

  4. Let the country be a museum once and for all,and those who are willing to adopt Zimbambeans adopt them peacefully.

  5. Let the country be a museum once and for all,and those who are willing to adopt Zimbabweans adopt them peacefully.

  6. If you are in the kingdom Of God whatever is going on in our country doesn’t affect you because God will be in control. All you need to do is Pray!

  7. The ONLY advantage of the dollar in Zimbabwe is price stability. However, since dollarizing, Zimbabwean industry has HALVED its production. And since dollarizing, the government’s foreign currency reserves have fallen drastically.

    It is imperative that Zimbabwe adopts its own currency once more. Follow this thought process:

    1. To develop, Zimbabwe needs to invest massively in useful infrastructure projects.
    2. However, due to crippling shortages in foreign currency, it can’t finance these projects.
    3. To raise foreign currency stocks, Zimbabwe must stop importing so much (which depletes forex reserves) and become a net exporter.
    4. With the dollar, Zimbabwe’s exports are uncompetitive.
    5. With its own currency, Zimbabwe will be able to transition to an exporting economy, raise foreign currency stocks, invest in its infrastructure, and climb out of the deep hole in which it has stagnated for the last two decades.

    The only way for Zimbabwe to develop is to transition to an exporting economy using its own currency. Dollarization offers short-term stability, but kills productivity in the long run, and accrues government debt.

    Hooefully it’s now clear which policy leads to development.

    1. thank you for the most objective response . . . its sad we do not have real analysis in zim.In 2009 when we dollarised a lot of companies shut down.I was a database administrator then and i literally pulled reports monthly of companies that had closed down and could not afford the dollarisation transition.Our company that provided software services lost close to 750 clients mostly from the graniteside industrial area and bulawayo.And these are companies that employed a lot of people.This is over a space of 1 year from April 2009 to may 2010 when i joined another company.Some of the big companies were to close later eg lion match and reckitt benkiser.

      the people who make a lot of noise that dollarisation is good are those that had office jobs during that period and got monthly salaries and sadly they are the loudest.I was earning USD then and was more than happy to get the usd on my atm ,reality is most of this money was exported buying stuff from SA etc noone thought or cared to analyse the impact on the local market especially manufacturing.The rural populace which is the majority was severely affected and the industrial base shrinked drastically.Dollarisation only benefited a few and it was drastic.

      1. This analysis is really Zimbabwe will be good again ,no country could prosper using other countries money,we just need to be really and avoid giving any impression that usd is answer to our economy challenges

      2. your analysis is not holistic. Did you analyse the impact of moving from the ZIM dollar to the USD. Some companies never recovered from that lose alone.Did you analyse that impact of government (51/49)% it had on these companies. Did you analyse the wanton expenditure by the government and the tax bands that prevailed in Zim Dollar visa eve the USD.
        There are countries using the multicurrency e.g. Namibia either you can he the local currency or rand at 1 is to 1.
        last but not least if l may ask, “what do you call our bond”? Technically its a currency because it’s trading on the market. Why is it no sprucing us up or simply put, why is it not working. If you get the answer why it is not working and fix those fundamental basics then you will be surprised seeing the jigsaw puzzle fitting in so well so easily.
        The currency is not the one that fixes the economy is but good economic and political policies do.

        1. I agree with this notion. there are lot of factors that comes into play like most policies adopted by our gvt. Having our currency without a viable industry will not work. we basically do not manufacture anything that adds value to the economy, so as long as we import most of the things we need this currency of our own will not get us anywhere.It is merely adding on to gvt expenditure and contribute to further inflation.

    2. Correct. We need no us$ in Zim because we abused it before. It’s easy to extenalise us$. We need to manage our exports properly, gold diamonds, tobacco, platinum chrome etc. All this revenue should be used properly. We should aim to industrialise full-time. Botswana is doing well despite reliance on diamond beef and tourism.

  8. I hope this is something genuine and no just trying to bring a currency through because our current situation is spiralling out of control.

  9. I agree with having our own currency but what about confidence issues?As long as the people are not confident in the new currency,it will lose value the second it gets introduced into the mainstream economy.

    1. For real. If there is nothing backing this currency apart from ‘our neighbours have their own’ then this will fall flat, AGAIN!

  10. So Regular Zimbabwean brags about his intelligent tribe.So the Shonas are more educated than Ndebeles so wwhat.For 4close to 40 years Zim has been ruled by one tribe Shonas look what they have done with their education.The prob is nnot Zanu Pf.Its the Shona tribe.Even Chamisa if given a chance will make things worse.Look at Sa in 25 years Mandela was Xhosa Mbeki Xhosa Motlanthe Suthu,Zuma Zulu Ramaphosa is Venda

  11. African haaaa aaaa this is serious. I am shona but i live Ndebele. we are one people.

    stop hating other tribes

  12. African haaaa aaaa this is serious. I am shona but i love Ndebele. we are one people.

    stop hating other tribes

  13. If Mnangagwa had any vision he would let Zim become the first country to adopt Bitcoin as the national currency. The problem is, he’s so out of touch that he’s probably never heard of it. More than a new currency, Zimbabwe needs new government.

  14. I don’t think Zimbabwe needs new currency instead it requires a new government. New currency won’t do good unless n until we have new pple managing the country.

  15. My question is. Are we not using local currency currently? I understand most of the ppple in zim use rtgs n a few elite group (zanu politicians) are using usd. So wats the logic here. Introducing a new local currency on top of another local currency????. I m not an economist but I understand these guys vagumirwa. Ndokunonzi kugumirwa uku. Nkata n anonymous Muri mat**o embudzi including anyone on earth who supports zanu. Mwese Muri mat**vi.

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