Mutsvangwa slams Mnangagwa's 'forex allocation economy'

Mutsvangwa slams Mnangagwa's 'forex allocation economy'
Published: 17 January 2019 (268 Views)
OUTSPOKEN Zimbabwe war veterans' association chair, Chris Mutsvangwa has slammed government and the central bank for cherry-picking local firms to favour with scarce foreign currency allocation at the expense of the rest.

Mutsvangwa said the controversial "forex allocation economy" has contributed to the current economic crisis in the country.

"It has failed and must be dumped in the dust bin," he told journalists in Harare Wednesday.

He added, "The forex allocation system had been used by the previous government where certain few individuals get allocated hard currency which they would not have worked for by the Reserve Bank of Zimbabwe (RBZ)."

The former Zimbabwe ambassador to China also said it was sad that tobacco farmers and artisanal miners' activities brought forex into the country but the particular groups remained wallowing in poverty after their money often got redirected to other sectors of the economy.

"Tobacco farmers and gold panners are the major suppliers of hard currency in this country, but they are not enjoying the rewards of their hard work because it is taken from them and allocated to few individuals," Mutsvangwa said.

"They continue to wallow in the circle of poverty; they never get any better year after year.

"RBZ must not expropriate their money and give it to somebody else. Why take their millions of dollars and give them bond notes.

"In my opinion, those who work hard in the country and earn hard cash should be allowed to enjoy it."

Zimbabwe faces an acute foreign currency shortage that has seen firms fail to produce to the same levels they used to.

The central bank has prioritised certain companies whose activities are viewed as strategic to the struggling economy in the allocation of forex.

They include those in the fuel sector and medicine procurement.

Lately, government promised to avail forex to the country top brewer, Delta Beverages after the firm had put out a press announcement suggesting it was now going to charge its products in foreign currency.

Finance Minister Mthuli Ncube has since appointed a Foreign Currency Allocation Committee to see to the distribution of foreign currency to targeted sectors.



- newzimbabwe.com

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

The Zanu-PF Youth League

by Clemen Moyo | 23 August 2019 | 96 Views

Does Illegal working in the UK make contract of employment unenforceable?

by Muchie Shamuyarira | 23 August 2019 | 76 Views

PHOTOS: Coltart tortured

by Mandla Ndlovu | 23 August 2019 | 165 Views

Living together during a divorce - What you should know

by Staff Writer | 23 August 2019 | 101 Views

As a matter of fact

by Staff Reporter | 23 August 2019 | 113 Views

Zimbabwe doctors eat patients' food

by Mandla Ndlovu | 23 August 2019 | 95 Views

Nick Mangwana dismisses Zimbabwe abduction reports

by Staff Reporter | 23 August 2019 | 110 Views

'Mnangagwa not committed to reform' America says

by Staff Reporter | 23 August 2019 | 105 Views

BREAKING: Civil servants salaries increased to $1,023

by Mandla Ndlovu | 23 August 2019 | 102 Views

Prophet Magaya faces investigation over sexual abuse

by Staff reporter | 23 August 2019 | 85 Views

American banker takes over CBZ Holdings Chairmanship

by Staff reporter | 23 August 2019 | 85 Views

Zivhu to be expelled from Zanu-PF

by Staff reporter | 23 August 2019 | 92 Views

Man murdered outside MDC office

by ZimLive | 23 August 2019 | 106 Views

BREAKING: Coltart arrested

by Mandla Ndlovu | 23 August 2019 | 186 Views

PROPHECY: Zimbabwe Prophet warns Cyril Ramaphosa

by Mandla Ndlovu | 23 August 2019 | 198 Views

General Chiwenga and Mphoko to take Mnangagwa to court?

by Mandla Ndlovu | 23 August 2019 | 232 Views

Jacob Mudenda's scandals unpacked?

by Nicholas Ncube | 23 August 2019 | 258 Views

Mnangagwa demands results from workers

by Staff reporter | 23 August 2019 | 177 Views

Chinese State Advisory Council in Zimbabwe

by Staff reporter | 23 August 2019 | 147 Views

RTGS system to send money in 5 seconds

by Staff reporter | 23 August 2019 | 121 Views

Minister Cain Mathema professes ignorance of rampant abductions

by newzimbabwe | 23 August 2019 | 76 Views

Mnangagwa to open Harare agric show

by Staff reporter | 23 August 2019 | 85 Views

Chibaya arrested over anti-Mnangagwa demos

by Staff reporter | 23 August 2019 | 69 Views

Chamisa using people for his own selfish ends

by Pupurai Togarepi | 23 August 2019 | 167 Views

Customers welcome new Zesa tariff system

by Staff reporter | 23 August 2019 | 143 Views

Sadc resolutions portend well for Africa's unity

by Dr Obert Mpofu | 23 August 2019 | 146 Views

RBZ acts on money transfer agents' consumer rip-off

by Staff reporter | 23 August 2019 | 153 Views

Chitungwiza Residents demand forensic audit

by Staff reporter | 23 August 2019 | 111 Views

Harare to invest in more solar traffic lights

by Staff reporter | 23 August 2019 | 125 Views

Econet launches digital mobile bureau de change

by Staff reporter | 23 August 2019 | 132 Views

Government gains $375 million

by Staff reporter | 23 August 2019 | 123 Views

Indian gold merchant invests in Zimbabwe sector

by Staff reporter | 23 August 2019 | 130 Views

Bulawayo woman brutally killed in UK

by Staff reporter | 23 August 2019 | 129 Views

US ambassador dodges Mnangagwa govt

by Staff reporter | 23 August 2019 | 134 Views

Demand for solar doubles DPA client base

by Staff reporter | 23 August 2019 | 122 Views

Prophet 'kidnaps' baby for prayer session

by Staff reporter | 23 August 2019 | 94 Views