SADC keeps report under wraps

Salamao's findings available ‘only to regional finance ministers'
BY OWN CORRESPONDENT
THE head of the Southern African Development Community said a report on economic solutions for Zimbabwe would remain under wraps.
SADC executive secretary Tomaz Salamao said Zimbabwe's economy would

recover and said the country’s neighbours would not need to pump money into the country’s ailing economy
“I have never suggested that money be pumped into the Zimbabwean Reserve Bank as a rescue plan,” he told reporters at a briefing in Gabarone, Botswana.
“I have also heard rumours that in my report I have suggested that the Zimbabwean Dollar be pegged to the South African Rand as a way of rescuing the situation. That is not true.”
He did, however, say his report recommended that SADC member states come up with ways to help Zimbabwe, and that finance ministers had been tasked with working with Zimbabwe and offering solutions.
Zimbabwe, once regarded as a regional breadbasket, first ran into economic trouble when Mugabe in 2001 ordered the seizure of white-owned farms that had been a major source of revenue.
The situation has worsened, with rampant inflation at 7 634,8% for June and massive food shortages. More than three million Zimbabweans have fled the country and four out of five people in the country are unemployed.
The contents of the report have remained a closely guarded secret, and it seems, will remain so.
“I will make it available for the Finance Ministers of SADC for now. Now is not the right time to make the document public. It will be made public at some stage, but not now,” he said.
Salamao said he found that despite the turmoil, the flailing economy remained a viable one.
“It is one economy that is operating with sanctions, although the European Union claims that their sanctions are targeting some 130 individuals. If you tell the world, ‘do not trust those who are running the economy’, what message are you sending?” he said.
“Zimbabwe’s economy currently has no access to soft loans and lines of credit. They operate only on hard cash. You cannot run an economy that way.”
South African president Thabo Mbeki, charged with mediating in the country’s economic and political crisis, denied in his weekly letter on Friday that SADC leaders were divided over the report.
Quoting from sections of Salamao’s report, Mbeki said the most urgent action was to establish lines of credit to allow Zimbabwe to carry out imports for production sectors.

Post published in: News

Leave a Reply

Your email address will not be published. Required fields are marked *