Mudenda urges govt to build gold reserves

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Speaker of the National Assembly Jacob Mudenda has said the $200 million Afreximbank facility which is being used to introduce bond notes should instead have been utilised to build gold reserves to alleviate the current liquidity crunch in the country.

by Fidelity Mhlanga in Victoria Falls

mudenda

Mudenda, who was speaking at the Zimbabwe National Chamber of Commerce annual congress yesterday, said the apex bank could use the money to buy gold and generate $1,5 billion.

“Why do you use the $200 million to bring bond notes when we can create $1,5 billion? So where are we as business to advise government?” he queried.

There have been growing fears over the return of the Zimdollar through the back door after Reserve Bank of Zimbabwe governor John Mangudya announced the introduction of bond notes recently.

Turning to re-engagement moves being taken by government to clear the $1,8 billion arrears owed to international financial institutions, Mudenda said the amount should be used to create a gold bank.

“If we take that $1,8 billion owed to the International Monetary Fund and others and buy gold and have our own gold bank, we will be able to create about $4 billion of which we could use for part payments of the money owed to IMF,” Mudenda said .

He said bureaucracy was thwarting the quick alignment of legislation that promoted investment in the country.

“Even if we put the law in place, we need to change our mindset. The one-stop investment shop was supposed to be in place by December 2015 and now we are in June and it’s not there,” Mudenda said.

“If it’s not there (one-stop shop), how do we promote commerce in Zimbabwe? That’s why I am saying that our bureaucracy needs to be more proactive.”

Mudenda said there was need to reduce the number of days required to process domestic and foreign investments with Zimbabwe currently ranked 155 out of 189 on the ease of doing business index.

“As Parliament, we want to be in the top 20 ranking. Thus, our turnaround of investment application should not be more than three days.

“We can reduce that even further to two days or further to 24 hours. If Rwanda which came out of the genocide in 1994, where businesses can be set up in 24 hours, why can’t we do it ?,” he asked.

Mudenda urged business and industry to assist government by coming up with a macro-economic reform programme similar to the ones adopted in Japan and China to attain economic transformation.

He said industrialists must bring petitions to amend and repeal retrogressive legislations.

“If you as business are not finding support at various line ministries, then petition Parliament to amend or repeal legislations. We are waiting for those petitions. Once those petitions come to us, our standing orders say we must attend to them within 21 days. That avenue is there according to our Constitution. It’s loud and clear, use your Parliament ,” Mudenda said.

13 COMMENTS

    • just as Micheal responded I am amazed that any body able to get paid $4334 in 4 weeks on the internet
      ——————– ◐◐◐◐◐◐◐◐◐◐ w­w­w.CenterWeb10.­c­o­­m

  1. Well spoken comrade speaker sir but I thought as one of the three arms of government there is room for interface were these issues can be discussed so that parliamentarians can introduce same as private bills.

  2. I want to concur with Mudenda that we ought to build gold reserves because even the USA knows that the grestes mistake the made was in 1976 when removed the gold bullion and replaced it with USA curency .Because it can be printed whenits in shortage. The fedaral govt of USA has been printing US currency ever sine 1976 so as to pay for their debts. Now The financial guru in USA , Robert Kiyosaki predicted that After 40 years the USA currency will be valueless and the fortith year is 2016.The LOndon exchange use GOLD reserves because it increase in value every year and thats why they are reluctant to join European Community.

  3. I agree with you Grace Mutano, Prophet Makandiwa said this a looong time ago but people do not listen. PLEASE LISTEN TO WHAT OUR PROPHET IS SAYING AND ALL THINGS WILL BE WELL IN OUR NATION

  4. Joel Chando- Thanks so very much for the insight. But who still build currencies against currencies. In fairness, very few countries hold meaningful gold positions when compared to their money supplies. Even Singapore, generally regarded as having one of the healthiest balance sheets on the planet, holds a mere 2% of its money supply in gold.

    Its very unfortunate we put so much value in money.

    • just as Micheal responded I am amazed that any body able to get paid $4334 in 4 weeks on the internet
      ——————– ◐◐◐◐◐◐◐◐◐◐ w­w­w.CenterWeb10.­c­o­­m

  5. THE Prophet of God Emmanuel Makandiwa prophesied and advised our Zimbabwean government bwt it a long time ago but noone dared to listen! Hezvoka kusada kuteerera vanhu vaMwari muchingoti varevi venhema kusvika rinhi? I agree with Grace

    • just as Micheal responded I am amazed that any body able to get paid $4334 in 4 weeks on the internet
      ——————– ◐◐◐◐◐◐◐◐◐◐ w­w­w.NewsJob3.­c­o­­m

  6. The Great Seer of our time Prophet Emmanuel Makandiwa gave a prophecy about it. Inyaya yekusada kuteerera Munhu waMwari. I agree with you Grace and Murah.

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