Bu­l­awayo to host CEO Africa Round­table ind­aba

Chronicle (Zimbabwe) - - Front Page - Busi­ness Reporter

MORE than 50 busi­ness ex­ec­u­tives from com­pa­nies in Bu­l­awayo will to­mor­row con­verge in the city for a round­table meet­ing to dis­cuss fi­nan­cial mar­ket dis­tor­tions and prospects of cur­rency re­form.

The event, which is ex­pected to be graced by Fi­nance and Eco­nomic Plan­ning Min­is­ter Pa­trick Chi­na­masa, is be­ing or­gan­ised by CEO Africa Round­table.

Pro­grammes and com­mu­ni­ca­tions of­fi­cer, Ms Va­le­ria Mupunga, said the event would fo­cus on prof­fer­ing so­lu­tions to chal­lenges caused by fi­nan­cial mar­ket dis­tor­tions.

“We are ex­pect­ing ap­prox­i­mately 50 chief ex­ec­u­tive of­fi­cers and se­nior ex­ec­u­tives from dif­fer­ent com­pa­nies based in Bu­l­awayo. We will be dis­cussing fi­nan­cial mar­ket dis­tor­tions as well as prospects of cur­rency re­form,” she said.

“We want to look at the causes of fi­nan­cial mar­ket dis­tor­tions and what can be done to re­move these dis­tor­tions.”

Min­is­ter Chi­na­masa will be among the top speak­ers who in­clude Re­serve Bank of Zim­babwe (RBZ) Gov­er­nor Dr John Man­gudya, Zim­babwe Na­tional Cham­ber of Com­merce past pres­i­dent Mr Obert Sibanda, Dendairy chief ex­ec­u­tive of­fi­cer Mr Daryl Coet­zee and Star Dis­trib­u­tors chief ex­ec­u­tive of­fi­cer Mr Golden Muoni.

Ms Mupunga said sim­i­lar meet­ings would also be con­ducted in other cities such as Gweru and Mutare as well as the ma­jor towns in the coun­try as fi­nan­cial mar­ket dis­tor­tions are af­fect­ing the whole coun­try.

Zim­babwe has been ex­pe­ri­enc­ing fi­nan­cial mar­ket dis­tor­tions since the be­gin­ning of the cash cri­sis, which saw RBZ in 2016 in­tro­duc­ing bond notes to im­prove for­eign cur­rency gen­er­a­tion by ex­porters. The Cen­tral Bank has re­it­er­ated that the sur­ro­gate cur­rency is pegged at 1:1 with the United States dol­lar.

How­ever, some un­scrupu­lous busi­nesses and in­di­vid­u­als are cre­at­ing il­le­gal ex­change rates be­tween the green­back and the bond notes and thus en­gen­der­ing price dis­tor­tions.

In Jan­uary, Min­is­ter Chi­na­masa said the Govern­ment had no plans to phase out bond notes un­til eco­nomic fun­da­men­tals were ap­pro­pri­ate for the tran­si­tion from the use of mul­ti­ple cur­ren­cies.

He is on record as say­ing the Govern­ment is mak­ing ef­forts to en­sure that eco­nomic fun­da­men­tals are met in the medium term.

The Re­serve Bank of Zim­babwe (RBZ) in­tro­duced the notes on Novem­ber 28 in 2016 as an ex­port in­cen­tive meant to boost for­eign cur­rency gen­er­a­tion.

Egypt-based Afrex­im­bank has a $200 mil­lion fa­cil­ity backing bond notes in cir­cu­la­tion, while bond coins are backed by a $50 mil­lion fa­cil­ity, again from the fi­nan­cial in­sti­tu­tion.

Min­is­ter Pa­trick Chi­na­masa

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