Home » Governance » No Quick Fixes to Economy – Chinamasa

Finance and Economic Development Minister Patrick Chinamasa has said that there are no quick fixes to the challenges facing the economy but emphasised the importance of raising production as one of the solutions to the problems.

Speaking to the Portfolio Committee on Budget and Finance yesterday, Minister Chinamasa said the days of miracle money are over and Zimbabweans should work harder on the farms and in industry to produce for export.

“There are a lot of people who think that there are quick fixes to our economy. There are people who think that we are still in the era where we can ‘burn money’ we don’t need to produce things that will just turn right without any effort on our part. This era is now gone. There are no alternatives to economic recovery of our country. We have to be productive,” said Minister Chinamasa.

“We just have to hammer in our people that the days of burning money and of miracle money are over. We have to work hard and produce goods and services that we can transact among ourselves and for export. We must exhort our people to put their shoulders to the wheel and work for the economic recovery of our country,” he said.

He said that the movement of the exchequer account from CBZ to the Reserve Bank of Zimbabwe is almost complete.

“We must restore to the central bank its function to mobilise resources for Government. I don’t believe that it is my role as finance minister to go from bank to bank domestically or internationally mobilising resources. That role is a function of the RBZ,” said Minister Chinamasa.

“It is for the Ministry of Finance to aise the central bank our national requirements to support mining, agriculture, manufacturing and it is then for the central bank to make contact with sources of funding. So I should in the next month or so be bringing to Parliament an amendment to the Reserve Bank Act to restore to it the role of mobilising resource on behalf of Government,” said Minister Chinamasa.

Minister Chinamasa said the banking sector is “very sound” although Government is grappling with non-performing loans which are weighing down on the sector.

“I have been looking at the banking sector especially on issues to do with corporate governance. Non-performing loans are at a level which weighs down the proper function of the banking sector.”

NPLs are currently around 17 percent.

“Unless we address that issue the confidence in the banking sector will continue to allude us,” said Minister Chinamasa.

Source : The Herald