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
Central bank targets supply side of the economy
THE Reserve Bank of Zimbabwe (RBZ) has extended the export incentive scheme to the cotton and tourism sectors as a deliberate effort to stimulate production and generate more foreign currency. Exports ...
READ MORE
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 ...
READ MORE
Mashakada says a $4 billion economy has no capacity to invest in the airline business
Movement for Democratic change Shadow Minister for Finance Tapiwa Mashakada says a $4 billion economy, like Zimbabwe’s, has no capacity to invest in the airline business. “What I recommend, is to ...
READ MORE
Nigerian President Muhammadu Buhari speaks during German President Joachim Gauck's visit to the State House in Abuja, Nigeria February 11, 2016. REUTERS/Afolabi Sotunde
LAGOS (Reuters) - Nigeria, Africa's biggest economy, officially slid into recession for the first time in more than 20 years as the statistics office announced a further contraction in the ...
READ MORE
African Economic Growth Dips to Two-decade Low, World Bank Reports
ABIDJAN — Economic growth in sub-Saharan Africa is likely to slip to 1.6 percent this year, its lowest level in two decades, due to continuing woes in the continent's largest economies ...
READ MORE
Zimbabwean President Robert Mugabe delivers his speech during Defence Forces Day celebrations in Harare, Tuesday, Aug. 9, 2016. In his speech Mugabe promised to improve the welfare of the military by offering better housing and transport to the country's armed forces. (AP Photo/Tsvangirayi Mukwazhi)
Edgar Garwe sits repairing mobile phones behind the counter of his tumble-down stall, worrying about a scarcity of customers and how he’ll pay his two children’s school fees. by Michael Cohen “We’re just ...
READ MORE
Robert Mugabe key to Zimbabwe’s economic prosperity—Moyo
Jonathan Moyo, the Higher and Tertiary Education minister, has reacted angrily to people critical of President Robert Mugabe’s continued hold on power, saying the 92-year-old statesman is crucial for Zimbabwe’s ...
READ MORE
The GDP is a grossly defective product. We need to knock it off its pedestal
It is the economic ring of rings, the number that rules all. Gross domestic product is the measure that preoccupies policymakers and obsesses markets. Traders fine-tune their predictions of Federal ...
READ MORE
Zimbabwe economy tanks back into recession
Harare - Zimbabwe will register negative economic growth of -0.3 percent in 2016 and -2.5 percent in 2017, the International Monetary Fund has projected, confirming the end of a seven-year ...
READ MORE
Consumers drive UK economy, defying expected Brexit vote hit
LONDON - Britain's free-spending consumers again confounded warnings that June's Brexit vote would cause an immediate slowdown in the country's economy, driving robust growth in the final three months of ...
READ MORE
Central bank targets supply side of the economy
GDP to grow at 1.7pct in 2017, Chinamasa
Mashakada says a $4 billion economy has no
Nigeria in recession as low oil prices shrink
African Economic Growth Dips to Two-decade Low, World
Waiting for Mugabe’s Exit, Zimbabweans Endure Shattered Economy
Robert Mugabe key to Zimbabwe’s economic prosperity—Moyo
The GDP is a grossly defective product. We
Zimbabwe economy tanks back into recession
Consumers drive UK economy, defying expected Brexit vote

Arts & Entertainment