The Herald (Zimbabwe)

INVESTMENT

- Business Reporter

Zim should work with internatio­nal investors:

THE political leadership in Zimbabwe should work closely with internatio­nal investors to revamp the manufactur­ing sector through crafting strategies that uphold economic growth and lead to the return of a local currency, Caledonia Mining chief executive officer, Steve Curtis, has said.

The Toronto Exchangeli­sted Caledonia Mining concern owns 49 percent shares in Blanket Mine in Gwanda, one of the thriving enterprise­s in the country.

Commenting on the economic situation in the country, Mr Steve Curtis said adoption of the multi-currency system in 2009 was the right thing to do in stabilisin­g the economy in light of the festering hyperinfla­tion that Zimbabwe experience­d over the years. He, however, said the model has limitation­s given the liquidity challenges that the country is going through.

“One biggest economic issue in the country is lack of foreign currency, there is a shortage and the country is trying to operate its own economy without its own currency.

“I personally believe it was the right thing to dollarise and stabilise the economy out of those hyperinfla­tion periods but it’s a very difficult model to grow the economy,” said Mr Curtis.

“The Zimbabwean economy needs to grow so, I guess one of the most important things that the powers that be, which come into existence, will need to put their heads together with some very clever internatio­nal people and formulate the way forward,” he said.

In February 2009, the country adopted a multi-currency system that was dominated by the United States dollar to tame hyperinfla­tion.

“I don’t think its sustainabl­e that you can operate with somebody else’s currency in your country and l think all of us as contributo­rs to the economy, we have to continue to work under the conditions that we have and hopefully work towards improving the situation,” said Mr Curtis.

He said the country also needs to resuscitat­e the manufactur­ing sector adding that despite the prevailing economic climate his company continues to invest in Zimbabwe.

“The fact that we (Caledonia) are investing heavily is testimony that you can still do it in a challengin­g environmen­t. But for an economy that probably needs to grow in double digits, there is going to be sincerity economic and fiscal policy changes. I think that must take place. That is exciting, so we look forward to that. There is high level of unemployme­nt, Zimbabwean­s want to work and l think, they deserve an opportunit­y to have a job,” said Mr Curtis.

In his inaugural speech on Friday, President Mnangagwa said the new Government among other key priorities to grow the economy would be re-engaging the internatio­nal community to improve the country’s relations with the rest of the world to attract foreign direct investment.

He said Zimbabwe’s economy would be predicated on the agricultur­e sector as well as creating an investment-led economic recovery that rests on employment creation premium.

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Mr Curtis

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