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