We’re craft­ing law to in­tro­duce bond notes: VP Mnan­gagwa

Chronicle (Zimbabwe) - - National News - In­no­cent Ruwende Harare Bureau

THE Govern­ment is in the process of craft­ing a law to sup­port the in­tro­duc­tion of bond notes as the coun­try needs a mode of trans­ac­tion it can con­trol, Vice Pres­i­dent Emmerson Mnan­gagwa has said.

The state­ment comes barely two weeks af­ter the Con­sti­tu­tional Court dis­missed, with costs, an ap­pli­ca­tion chal­leng­ing the in­tro­duc­tion of bond notes by Zim­babwe Peo­ple First leader Dr Joice Mu­juru, de­scrib­ing it as pre­ma­ture and spec­u­la­tive for seek­ing to chal­lenge bond notes which are not even in cir­cu­la­tion

Speak­ing at a lun­cheon to mark the of­fi­cial open­ing of the Fourth Ses­sion of the Eighth Parliament of Zim­babwe in Harare yes­ter­day, VP Mnan­gagwa said the fi­nan­cial ser­vices sec­tor is con­strained be­cause the le­gal ten­der of the coun­try is an­chored on for­eign cur­ren­cies, hence Zim­bab­weans should em­brace bond notes.

“Let me as­sure you that it is not a dream. It is go­ing to be re­al­ity. We are go­ing to live with it. Those who can eas­ily re­alise that re­al­ity should be­gin to ac­cept that the bond notes will be with us. We are in the mid­dle of craft­ing leg­is­la­tion to in­tro­duce the bond notes.

“The cur­rent fi­nan­cial ser­vice sec­tor in the coun­try is con­strained by the fact that cur­rently the le­gal ten­der of the coun­try is an­chored on cur­ren­cies that we have no con­trol over. We need a mode of trans­ac­tion which we can con­trol in the coun­try on the ba­sis of security pro­vided by the Exim Bank $200 mil­lion,” he said.

The VP said as­sets or re­sources created in the coun­try can­not be matched with the cir­cu­la­tion of money sup­ply in the coun­try.

As such, the in­tro­duc­tion of the bond notes will see the coun­try be­ing able to have a cur­rency that cir­cu­lates within its ju­ris­dic­tion, which will be used to do in­ter­nal trans­ac­tions.

“The US dol­lar or the pound, which we use kutengesa madora (ed­i­ble cater­pil­lar) is an im­por­tant in­ter­na­tional cur­rency in other ju­ris­dic­tions, but here we use it for any­thing,” he said.

Vice Pres­i­dent Mnan­gagwa called for unity, peace and sta­bil­ity for the pur­pose of the eco­nomic growth.

He said Govern­ment has also crafted a pro­gramme to make sure that in the next three or four sea­sons, there would be food security.

“We need to say bye bye to the im­por­ta­tion of grain into this coun­try. Un­der that pro­gramme, I would want to state here pub­licly that we have been pleas­antly sur­prised by the co­op­er­a­tion we re­ceived from the pri­vate sec­tor in sup­port of the Com­mand Agri­cul­ture Pro­gramme.

“We are grate­ful also, for the sup­port we have re­ceived from the farm­ers coun­try­wide. There has been over­sub­scrip­tion to the pro­grammes in both mat­ter of hectares and farm­ers com­ing for­ward to take part in the pro­gramme, we are grate­ful,” VP Mnan­gagwa said.

Vice Pres­i­dent Phekezela Mphoko urged Zim­bab­weans to pray for nor­mal rains.

“I ap­peal, on be­half of Pres­i­dent Mu­gabe and VP Mnan­gagwa, all reli­gious lead­ers and tra­di­tional lead­ers, let us pray for nor­mal rains. There is a threat that there will be floods, but floods are a curse. Please, let us pray for nor­mal rains,” he said.

Local Govern­ment Pub­lic Works and Na­tional Hous­ing Minister Saviour Ka­sukuwere said the cur­rent sit­u­a­tion in local gov­er­nance was still fraught with so­cio-eco­nomic chal­lenges that re­quire con­certed ef­forts from the Govern­ment.

“Con­scious of the fact that, the afore­men­tioned chal­lenges should not be used as an ex­cuse for short-chang­ing rate pay­ers by al­low­ing the de­liv­ery of ser­vices and in­fra­struc­ture to de­te­ri­o­rate to un­prece­dented lev­els wit­nessed to date.

“Gone are the days when we used to run local au­thor­i­ties as char­i­ta­ble or­gan­i­sa­tions. In­stead, local au­thor­i­ties should be run like other con­ven­tional busi­ness en­ti­ties, with clear ob­jec­tives of high qual­ity ser­vice de­liv­ery on a sus­tain­able ba­sis,” he said.

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