MDC-T warns of looming humanitarian crisis in Zimbabwe

Harare – The Zimbabwe opposition Movement for Democratic Change (MDC-T), led by former prime minister Morgan Tsvangirai, on Sunday warned of a humanitarian crisis in Zimbabwe, saying an economic upturn for the country was highly unlikely given the macroeconomic instability.

MDC-T economic development secretary Tapiwa Mashakada said in his Christmas message to the nation that 2017 would be a “meltdown” year for the country.

“I think 2017 will be a meltdown year. We are going to see bond notes flooding the market and the withdrawal of the US [dollar] as a domestic legal tender,” he said. Mashakada predicted the introduction of foreign currency rationing and the reintroduction of foreign currency accounts, adding the budget would remain in deficit.

“The budget deficit will worsen as the state will begin to roll-out patronage funds on projects to woo voters,” he said. The former government of national unity economic development minister said voter registration and preparations for the 2018 polls would drain the economy and push inflation up to 10 percent by December 2017.

“There may be another humanitarian crisis as the state fails to provide basic social services. [Governing party] Zanu PF factionalism will reach crescendo levels rendering government dysfunctional.”

Mashakada said fuel and food shortages were likely as the nostro accounts gradually depleted.

“These are not far fetched scenarios unless something dramatic happens in the body politic that will bring back sanity and confidence. Unfortunately, Zanu PF is incapable of introducing economic reforms. In short, the economy will remain in its junk state in 2017,” he said. – African News Agency

Related Posts
This year’s World Economic Forum in Davos will focus on the threat of right-wing populism for the first time ever
Each year in late January, around 2,000 of the globe’s leaders – politicians, bureaucrats, business representatives and public intellectuals – make the annual pilgrimage to the Swiss town of Davos ...
Zimbabwe Ready to Introduce Bond Notes – Finance Minister
HARARE - Finance Minister Patrick Chinamasa says the Reserve Bank of Zimbabwe will with immediate effect start the process towards issuance of bond notes as a legal tender in the ...
Why SA won’t intervene in Zimbabwe’s worsening political and economic crisis
Political parties in Zimbabwe are seething over SA’s mellow response to its political and economic crisis, which they say is spiralling out of control. BY RAY NDLOVU Sparking the latest fallout were ...
A trader works on the floor of the New York Stock Exchange shortly after the market opened in New York September 1, 2015. Wall Street opened sharply lower on Tuesday after weak data from China heightened fears of a slowdown in the world's second-largest economy and its effect on global growth. REUTERS/Lucas Jackson
THE world economy needs international trade to pick up, according to Reuters polls of hundreds of economists who see no end yet to the aggressive monetary stimulus through which central ...
Op-Ed: Why bond notes can’t save Zimbabwe – and what ordinary citizens can do
The Zimbabwe dollar was abandoned in 2009 after the government ran the printing presses so wildly that the national currency became worthless. The country then adopted the US dollar as ...
Can the rand rescue Zimbabwe’s economy?
FORMER Finance Minister Tendai Biti sits in his office in a leafy Harare suburb, contemplating another collapse of the Zimbabwean economy. Thanks to a chronic shortage of United States (US) dollars, ...
GDP to grow at 1.7pct in 2017, Chinamasa silent on civil servants’ bonuses
HARARE,– Finance minister Patrick Chinamasa on Thursday said Zimbabwe’s economy will grow by 0.6 percent in 2016, half of his previous projection, but is seen rising to 1.7 percent in ...
How bond notes could ruin economy
THE apparent reason for the introduction of bond notes by Reserve Bank of Zimbabwe (RBZ) governor John Mangudya last week was to fund export incentives of up to five percent. But ...
Stagnant economy, yawning deficit keep heat on Zimbabwe’s Mugabe
HARARE (Reuters) - Zimbabwe's economy has stagnated this year while its budget deficit has exploded, the government said on Thursday, adding to President Robert Mugabe's problems as he faces unprecedented ...
People sleep outside CABS Fourth Street branch on Thursday night. Pictures: Tapiwa Zivira
Harare - The current economic crisis in Zimbabwe is a result of Zanu-PF’s sole control of government after the end of the Government of National Unity (GNU), a senior economist ...
This year’s World Economic Forum in Davos will
Zimbabwe Ready to Introduce Bond Notes – Finance
Why SA won’t intervene in Zimbabwe’s worsening political
Rise in global trade the tonic the world
Op-Ed: Why bond notes can’t save Zimbabwe –
Can the rand rescue Zimbabwe’s economy?
GDP to grow at 1.7pct in 2017, Chinamasa
How bond notes could ruin economy
Stagnant economy, yawning deficit keep heat on Zimbabwe’s
Economist blames Robert Mugabe’s party for cash crisis

Arts & Entertainment

Arts & Entertainment

Jennifer Lopez coyly addresses Drake relationship amid romance rumours

20th January 2017 Staff Reporter 0

Jennifer Lopez claims her relationship with rapper Drake is strictly professional. In a new interview, the Shades Of Blue actress avoided questions about their rumoured romance and instead, confirmed they have collaborated on a new […]

Arts & Entertainment

Paris Jackson ‘wants to vomit’ seeing white actor as ‘King of Pop’

12th January 2017 Staff Reporter 0

Michael Jackson’s daughter Paris says she is “incredibly offended” by a new comic film in which a white British actor, Joseph Fiennes, portrays the late “King of Pop.” Paris Jackson, 18, also called the tongue-in-cheek […]