Zimbabwe would consider adopting the South African rand as its currency and entering a rand union, Industry and Commerce Minister Welshman Ncube told a forum in London Tuesday. He said the country can't keep using multiple currencies so it would look at joining Namibia, Swaziland and Lesotho in the rand monetary union where the rand is used alongside local currencies.Elsewhere, finance minister Tendai Biti repeated that the Zimbabwe dollar isn’t coming back any time soon, contradicting President Mugabe’s contention it should be restored to help rural dwellers without access to hard currencies.
Director Godfrey Kanyenze of the Labor and Economic Research Institute tells Studio 7 that reintroducing the Zimbabwe dollar doesn’t make sense given the shape of the economy.
Looking for an infusion of foreign capital, the government will make its case to international investors in a two-day conference beginning on Thursday in Harare. The gathering will also encourage Zimbabweans in the Diaspora to identify business opportunities at home.
Economic planning and investment promotion minister Elton Mangoma says the conference aims to position Zimbabwe as a destination for foreign direct investment in Southern Africa.Zimbabwe hopes to raise more than 50 million US dollars by offering so-called Diaspora bonds to millions of nationals living abroad – though such a venture could face skepticism amid fears that the money might fund Zanu-PF activities.
The unity government is far from raising the eight to 10 billion dollars it needs to revive the economy and reconstruct, so it is looking to raise funds through the private market.
Analysts say many most Zimbabweans abroad, who collectively remit some 500 million a year to the country, will probably subscribe to the bond issue if the political situation improves.
London-based political analyst Bekithemba Mhlanga tells reporter Gibbs Dube success will depend on the likely investment return.
Post published in: Agriculture