GLOBAL independent advisors, the de Vere Group, have urged the government to adopt the South African rand to encourage foreign investment.
BY BUSINESS REPORTER
In a statement yesterday, de Vere Group’s area manager for Zimbabwe, Botswana and Mozambique, Shane Helberg said Zimbabwe’s adoption of the rand, as the main trading currency, should be championed.
“While the rand perhaps isn’t as weighty as the US dollar for international trade, as it’s more volatile against major currencies, it must be noted that the dollar has not been effective in arresting the free falling economy in recent times. Using one primary currency, the rand, for commerce, is likely to be beneficial for several key reasons,” he said.
“First, it is better to move to using one single semi-convertible currency than a multiplicity of currencies at the moment, as it reduces confusion and uncertainty. Stability and certainty is always welcomed by foreign investors.”
He said, should such a move succeed, the country can expect further levels of foreign investment. Helberg said, in turn, more expatriates and international organisations would move to Zimbabwe bringing with them enormous economic benefits.
The South African rand was last year informally eased out of the market despite it being part of the multi-currency system, after it fell on the back of weakening commodity prices.
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Since then, the US dollar became the most used currency, with over 90% of transactions being conducted in that currency. South Africa is Zimbabwe’s biggest trading partner.
“Secondly, the measure should also help boost trade links with South Africa, Zimbabwe’s major trading partner. This is especially important for Zimbabwe, as it will make China, among others, more confident about investing in the country if it helps stabilise the economy,” he said.
The de Vere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80 000 clients and $10 billion under advisement.
