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Zimbabwe's Economy Going Towards The Graveyard - Mugano

7 months agoFri, 26 Jul 2024 12:17:04 GMT
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Zimbabwe's Economy Going Towards The Graveyard - Mugano

Economist Gift Mugano has warned that the Zimbabwean economy is rapidly approaching a crisis similar to the one experienced in 2008 when the country’s GDP growth plummeted to -17.7% and the Zimbabwean dollar became virtually worthless.

Reacting to the Mid-Term Budget Review Statement presented to parliament on Thursday by Finance, Economic Development and Investment Promotion Minister Mthuli Ncube, Mugano stated that the Treasury boss should consider introducing a supplementary budget to address the financial shortfall caused by the depreciation of the local currency.. Wrote Mugano on X:

The mid-term budget review exposed economic rot

Forget about nice phrases from my esteemed brother [Mthuli Ncube] – consolidating stability…There is nothing to consolidate. The economy is in a dire situation. The economy going towards the graveyard. We are fast approaching 2008.

These are the facts:

1. Contribution of IMTT to total revenue fell drastically from about 16% in 2019 to 3.4% in 2024 – signifying deepening informality and collapse of the formal economy;

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2. Percentage of people employed in the informal sector increased from 75.6% in 2019 to 87.7% in December 2023 – signifying deepening informality and the collapse of the formal economy. @MthuliNcube in the NDS1 was targeting to reduce informal employment to 70% (i.e., increasing formal employment to 30%) by 2025. Right now formal employment is sitting at 11.3%;

3. Youth unemployment is standing at 3.5 million – 3.5 million young people are unemployed. The majority of the youths are drug addicts.

4. National debt has ballooned to US$20.8 billion (ZiG287.2 billion/13.78) up from US$18.73 in 2023, i.e., a staggering US$2 billion increase;

5. Close to 50% of the population is living in extreme poverty.

6. Both the education and health sectors are in intensive care units.

7. Close to 25% of the children under 5 are suffering from stunting growth – future generation & human capital is threatened;

8. Businesses executives tell me that they are failing to access forex from banks with some securing 5-10% of their forex requirement notwithstanding the assurances given by the @ReserveBankZIM

9. Exchange rates are running away – we hear banks are using rates averaging ZiG22.30/US$1 while parallel market rates are hovering around ZiG24/US$1.

10. Aggregate demand is plummeting – mari haisi kubatika or kutenderera – which is now a common statement in the market.

Until GOZ and all stakeholders in the ecosystem of policymaking confess the truth about the state of the economy, we will sleepwalk into 2008.

In view of the fact that the Honourable Minister of Finance didn’t table a supplementary budget, the following question is pertinent:

Official exchange shot from ZWL6000/US$1 (i.e. at the time you presented the 2024 budget in Nov 2023) to ZWL33,882 (now equivalent to ZiG13.52) as of 5 April 2024. Resultantly, the national budget which was equivalent to +US$9 billion when it was presented (under assumption of stable exchange rates) was eroded to US$1.68 billion. Isn’t this enough reason to do a supplementary budget?

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54 Comments

Bee👀 · 6 months ago
Nhasi veduwe ko mwari ndozvakanyora her pamusoro pezi.
Anonymous · 7 months ago
Kkk kazum life
Anonymous · 7 months ago
Kkk kalife kemuzimba kkkk hatidi Hondo zvitoribho handei neupenyu
Erudite · 7 months ago
If bitterness and luncay were to coalesce into a human being it would be this bitter voodoo economist..Mugano lurches from senseless point to senseless point in an increasingly pathetic attempt to make himself relevant...😂😂 wow I am starting to doubt his credentials as a professor because to me he sounds like those overzealous illegal vendor quacks that graduated from the school of life and think they can lecture us...Who would seriously seek advice from this urchin who lurches from one firing to another and spends their time on an unmonenitized platform where Western incels spend their time wanking off to p0rn 😂😂😂.... Mugano please go look for a job instead of mourning on X like some preteen girl.... Erudite out
shadowwalker · 7 months ago
l completely agree with your assessment, this is just bitterness fueled by subjectivity. his credentials now raise high concerns to me, he completely sounds like an immature 12year old reading a script presented to him.
Anonymous · 7 months ago
Mame mame
xxxx · 7 months ago
private invstg shi t no 3rd term for ED
Anonymous · 7 months ago
Mugano economist chaiye chaiye,handei tione
XXX · 7 months ago
shodows mha ta yak o
👽 · 7 months ago
Abhuirei Mtape...spot on as usual. Unfortunately these thugs in govt don't give a hoot about the poor man
Anonymous · 7 months ago
We have heard this nonsense since 2018.
Mutundo · 7 months ago
Well done Mugano - Very true !
Anonymous · 7 months ago
The damage has been done Zimbabwe is in a bad state people must open theŕ eyes when things were going good in 1970 then in the 1980 the damages came in a look what they have Done
Anonymous · 7 months ago
Who takes this clown seriously
GenerationZ · 7 months ago
Talking of Clowns, it's you that's a clown and ostrich combined
Anonymous · 7 months ago
Not me
Corruptmore Looto · 7 months ago
ZiG iChange yemuma kombi nemaTuck shop, it's not real money. Kufanana nebond note ra2016. Kana ane nharo John Mushayazig he should release it rese uone kudonha kwaroita
laugh emoji1
justice McMillan · 7 months ago
Zimbabwe will never face the 2oo8 scenario due to the inclusion of USD. After all there were price controls which faced resistance.......
N · 7 months ago
This is what caused chikozho to take his life, since zig was introduced he never had one in his hand. From the bus the shop nozig passed his counter he used up all the rand and usdollar he had nothing came back as profit. The gun mind came only as a solution Ncube mtuli mushayazig john you are both responsible for loss of life upon chikozho. So in short ensure you take care of this funeral you killed openly. 🙋‍♀️🙋‍♀️Teammbavhambwa
Kkkkkk · 7 months ago
Anotaura chokwadi haaadiwi mrume Anotaura idi uyu
🥴Attested development · 7 months ago
The speaker of Parly Jacob Mudenda, has often said we should jump into comments before we ingest and digest what Mthuli has proffered The likes of Mugano are not economic surgeon enough cause they mislead people with their misrepresentation and being not singing along every government economic policy overtime their comments have become irrelevant
sad emoji1
🥴Attested development · 7 months ago
*should not
Need Info · 7 months ago
true
You can rig the elections not the economy · 7 months ago
When Gideon Gono removed the zeros gore riya l listened to his interview pa radio. Vanhu vaifona vachiti vaGono matigonera, ko maimbovepi nguva yese iyi. And he was over the moon. After about a month akati odzoka ma zero aya- the rest is history. Apa Mthuli akangobvisawo ma zero. He knows a repeat is inevitable that's why he is drip feeding the zig into the market.Saka mungati mune currency iyo isiri mu economy? Thus creating artificial value. As long as ma company akavhara and zanu pf thugs (vene) and the chinese are looting. hapana kwatiri kuenda. Zambia removed the zeros after us in 2014 and their economy grew because the fundamentals were right.
1
Sadmore Looto · 7 months ago
Haa zvinorwadza guyz kuti taimboseka vana Botswana, Namibia, Zambia, Mozambique and Malawi now tisu taLaughing Stock muRegion tichidzingwa sembwa. I remember kumaEarly 90s kuti vanhu vaiseka kuti maZambians anoda bhara kuti vatakure mari yekutanga chingwa. Apa tisu takazopedzisira takuona moto, haa Zanu yakaparadza nyika guys
Six Feet Under · 7 months ago
Haa ndakakita kare vanhu wee, panotoda MUKOMANA kuti andipe andiite resurrection kwete Mafia riripo iri and ndiro riri responsible for my death
The Undertaker · 7 months ago
Zimbabwe's economy died and got buried a long time ago
WV · 7 months ago
If the economy died a long time ago, then you should be dead too!
wv looter · 7 months ago
maybe the undertaker is not a looter like you?!
Sadmore Looto · 7 months ago
The economy is dead and buried, musoro Bhangu
heartman · 7 months ago
iwe unoti uri mupenyu here kkkk
hoyo · 7 months ago
vene and sons ltd 🥴are employee
mwalimu · 7 months ago
tanzwa nekunyeperwa.Kuno kuGweru bho zvekuti 👍
Boss lady · 7 months ago
Yet Vene is talking about 2030 back to stone age. Mahiya is talking about extending vene's beyond 2028
Dhadza · 7 months ago
Mari iyi so,sei kudonha iyo iri backed by gold & ather minerals?
WV · 7 months ago
Currency manipulation. The enemies of this country are destroying our currency. CIA assisted by puppets and greedy elements are manipulating the currency.
you dhum guy · 7 months ago
say no to drugs and slow down on the alcohol too , you brainwashed border gezi youth, and also stoopid from your studies at chitepo school of ediotology
heartman · 7 months ago
the enemy number 1 is vene! the level of corruption has hit an all time high. those are the real saboteurs. if they really care for us they should just leave us.
zarnoo satanists · 7 months ago
zarnoo is a curse to zimbabweans
Pombi yadonha · 7 months ago
bank 🏦 rate yacho iri kungokwira wani pasina makorokoza, so wr is the gold thing now, why not constant since iine back up
Jojo the mouthpiece · 7 months ago
Shshshsheeeeeee Vice President vschamboona ma Olympic games nemudzmayi wavo mu NewOne.
Mm · 7 months ago
Hoyo
· 7 months ago
I thought that the economy was already dead and buried in some graveyard, waiting for a new non-ZANU government to resurrect it, Jesus style? 😳😳😳
HiLLBiLLIES VOLkSWAGEN 0774857233 · 7 months ago
ZVIMWE HANDICHAVERENGE BUT UYU MURUME UYU ANOTAURA CHOKWADI CHINOENDESA MUNHU KUDENGA ITS TRUE ZIMBABWE ECONOMY HAKUNA KWAIRI KUENDA
WV · 7 months ago
Makangofanana

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