Reverend Dr Kenneth Mtata, the current General Secretary of the Zimbabwe Council of Churches (ZCC) has said that trust is the missing ingredient to stabilize the Zimbabwean currency and macroeconomy.
His remarks come as the Minister of Finance and Economic Development, Professor Mthuli Ncube, announced a cocktail of measures to stabilise the foreign exchange rate and the macroeconomy.
In Twitter posts seen by Pindula News, Mtata said the recent announcement of a proposed “gold-backed digital currency” by the Reserve Bank of Zimbabwe (RBZ) to combat inflation is commendable, but it does not address the issue of eroding trust between citizens and the government.
Mtata added that recent events such as the GoldMafia documentary and the lack of responsiveness from the government have worsened the situation. He said:
THE MISSING CURRENCY IN ZIM
Zimbabwe is back on the international headlines after the announcement of the proposed “gold-backed digital currency.” While efforts by the RBZ to arrest inflation should be commended, the missing piece that is not being addressed is TRUST.
Trust between citizens and the government has continued to be eroded. The recent #GoldMafia documentary and lack of responsiveness from the government has not helped the situation. The pressure of elections doesn’t allow for any meaningful national engagement.
It is, therefore, unlikely that the current initiative by the Reserve Bank will produce any meaningful improvements. A plan must be put in place to resolve the current trust deficit after elections. Only a TRUST-BACKED currency will alleviate the suffering of our people.
Zimbabwe is in huge TRUST deficit reflecting on recurrent financial troubles. The high prices, inflation, and dollarisation are partly a manifestation of broken trust. Should we not be looking for ways to rebuild this broken trust? What will a TRUST-building process look like?
The declining trust in Zimbabwe’s government is a result of various factors, including corruption, economic mismanagement, and lack of transparency as well as policy inconsistencies. All these have further hindered economic growth and affected citizens and investors.