Ncube-Chitando team best combination to resuscitate Zimbabwe
THE APPOINTMENT of Professor Mthuli Ncube as the Minister of Finance and Economic Development in Zimbabwe last week is an expression of the commitment to both foreign and domestic investors by President Emmerson Mnangagwa that he will prioritise economics over politics.
Ncube will work closely with Winston Chitando, who has been moved to the mines ministry.
Ncube holds a PhD in Economics (Mathematical Finance) from University of Cambridge, Selwyn College, UK, on “Pricing Options under Stochastic Volatility”.
He has extensive experience as an investment banker, having worked at Investec. The connections he made as chief economist at the African Development Bank will help him to move with speed to get $2 billion (R30.44bn) from foreign bankers to ease Zimbabwe’s critical foreign exchange shortage that is hampering economic growth, as this shortage prevents the importation of critical components in manufacturing and mining.
Given that the agricultural sector remains stunted due to the historical politicisation of land, lack of investor interest and climatic shocks, mining is going to drive the recapitalisation of the economy in the short-term with a focus on coal, ferroalloys, lithium and platinum.
On paper, the Ncube-Chitando team looks like one of the best combinations required to resuscitate Zimbabwe’s ailing economy.
But there is need for caution given Mnangagwa’s comment that he will do what his party requests him to do. That will be the major deciding factors on how the new cabinet will perform.
The advantage of technocrats is that they can be obsessively dedicated to the success of their department as they are not accountable to the electorate.
They can implement unpopular policies.
Before his appointment this month, Ncube was managing director and head of Quantum Global Research Lab based in Switzerland, which is part of the Quantum Global Group, the largest private equity group dedicated to investing in Africa.
In January he arranged and sponsored the luncheon with Swiss and European business community for the Zimbabwean ministerial delegation in Zurich, Switzerland.
The event contributed to the agenda of “Zimbabwe is open for business” and showed his commitment to attracting foreign investment into Zimbabwe.