Authorities in crisis meeting | Business Times

LIVINGSTONE MARUFU

 

Captains of  industry  will next week meet the  outgoing Reserve Bank of Zimbabwe (RBZ) governor, Dr  John Mangudya   to discuss a range of matters  impacting the economy and price stability, Business Times can report.

The development was disclosed by the Confederation of Zimbabwe Industries (CZI) president Kurai Matsheza.

“If all goes well, we are meeting  governor Dr Mangudya next week over the current pricing  conundrum, the refinement of the Dutch foreign currency auction system and exchange rate and continuous increase in goods prices among other issues.

“We are hoping that the frank discussions will bring solutions to our current challenges. We will continue engaging with the authorities  to find long lasting solutions,” Matsheza said.

He also said the official rate’s 10% margin is detrimental to their industry and are thus asking for its elimination.

“The issue of 10% is affecting all companies across the country hence we shall also give a plea to Dr Mangudya over its removal. Even if they may completely remove it, we need a solution to this quagmire as businesses continue to struggle with working capital due to exchange losses due to widening gap between official and parallel market exchange rates,” Matsheza said.

He stated that the industry will speak with the Treasury in the coming weeks following a meeting with Dr. Mangudya.

The government recently chastised the industry for unjustified price hikes, yet companies persisted in their survival.

According to another business leader  who spoke on the condition of anonymity,  also confirmed the upcoming meeting with Dr Mangudya.

“We will meet the governor  next week and we expect a long term solution on exchange rate and auction system to stabilise the exchange rate and prices. Our next stop will  be the  Treasury where we need a relook at taxation issues taking a toll to the businesses,”  the business leader said.

The Zimbabwe National Chamber of Commerce president Mike Kamungeremu  also confirmed the development.

“We are always engaging with both the central bank and Treasury to find long lasting solutions but  we expect a huge change in the upcoming engagements as they are key  in turning around the  fortuners of the economy.

“We need results rather than the blame game,” he said.

Government has accused businesses of  profiteering owing to the past experiences of the hyperinflationary era.

 

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