Mnangagwa admits economic failure; blames pandemic

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President Mnangagwa's rhetoric on corruption is not matched by solid action against well known looters
President Mnangagwa

HARARE – President Emmerson Mnangagwa’s administration has admitted that the economy is slowing down but blamed the impact on the Coronavirus, TSTnews can report.

By Nyasha Ndoro

Speaking at a post cabinet briefing attended by TSTnews yesterday, Information minister Monica Mutsvangwa said the negative development had been confirmed by Finance minister Mthuli Ncube and Reserve Bank of Zimbabwe (RBZ) governor John Mangudya.

“Cabinet received and expressed appreciation on the State of the Economy report presented by the Minister of Finance and Economic Development and the Reserve Bank of Zimbabwe Governor.  

“In tandem with other global economies, Zimbabwe’s economy has been negatively impacted by the COVID-19 outbreak and growth is expected to slow down,” Mutsvangwa said.

She also added that the drought Zimbabwe experienced in the 2018-19 and the current season coupled with diminished access to external sources of foreign currency further compounded economic crisis.

TSTnews however understands that this comes barely a week after Ncube claimed the country had recorded a budget surplus.

Mutsvangwa said measures were afoot to control the economic failure.

“There are however, a number of measures, both fiscal and monetary, that are being implemented to address the challenges that the country is going through in the absence of financial support from International Finance Institutions (IFIs),” she added.

TSTnews also noted government’s claim that the current price and foreign exchange rate “fluctuations” were divorced from real economic fundamentals and could be attributed to speculative tendencies.  

“The Minister of Finance and Economic Development and the Governor of the Reserve Bank of Zimbabwe will announce measures which should see the situation stabilizing in due course,” added Mutsvangwa.