Up your game, RBZ tells local firms

RESERVE Bank of Zimbabwe (RBZ) governor, John Mangudya has said local companies must up their game and brace for stiff competition, as foreign investors reportedly eye setting up shop in Zimbabwe.

BY FIDELITY MHLANGA

Speaking at the Confederation of Zimbabwe Industries (CZI) economic outlook symposium in Harare yesterday, Mangudya said local companies have to improve their efficiencies and competitiveness.

“We are opening up business for both domestic and foreign investors. Therefore, the challenge for domestic investors is that you need to improve on your efficiencies and competitiveness. Because someone will come and set up a plant to produce a better plastic using their own money. It means that our businesses are threatened,” he said.

“So ask yourself, how do I compete in a liberalised economy? Are you businesses ready to compete? Let’s say, if you are producing 3 000 garments per day using old equipment, maybe you are going to compete with a Chinese, Indian or Ethiopian investor which produces 10 000 garments per day? So you need to improve your businesses to make sure they compete.”

Mangudya said he met a number of investors keen to invest in the country during his recent trip to Switzerland.

“In Zurich, we met the business community there. They are so keen to come to Zimbabwe. Yes, we know that these are infancy stages, but we need to continue to manage this process. I have seen quite a number of banks coming to Zimbabwe. A number of investors are coming to Zimbabwe. We need to be prepared for competition and I know it’s going to reduce the appetite for people to internationalise money,” he said.

The RBZ boss said he has witnessed an increase in bank deposits, following an announcement of an amnesty to corporates and individuals that externalised funds and assets.

Mangudya said he also had time to engage with correspondent banks after the country has lost at least 50 of them since 2008.
A correspondent bank is a financial institution that provides services on behalf of another by facilitating wire transfers, conduct business transactions, accept deposits and gather documents.

The central bank boss said most countries had fiscal deficits, but what was problematic in Zimbabwe was that the country is financing its deficit through Treasury Bills and overdrafts because of lack of foreign financing.

Agribank business development director, Joseph Mverecha called for the complete overhaul of Indigenous Economic Empowerment Act, so as to start on a clean slate.


In his 2018 National Budget presentation, Finance minister Patrick Chinamasa said the 51:49 threshold would only apply to platinum and diamonds.

Mverecha said there was need to stop cash premiums flourishing on the parallel market so as to stem inflation.

Italian ambassador to Zimbabwe, Enrico De Agostini, who is expected to lead a business delegation to Italy at the end of February, said the country must ratify outstanding Bilateral Investment Promotion and Protection Agreements, so as to send positive signals to countries that intend to invest in Zimbabwe.

10 Comments

  1. How do you expect Zimbabweans to get the same equipment as the on being brought in by foreign investors if you are failing to provide forex? Your department needs to up its game first then local businesses will follow.

  2. how will I improve my equipment with no forex?? plus here im overtaxed etc. and the chibnese company has a klarger market as well as governemtn incentives for export. fix the underlying problems you created when you raided bank balances and took orex.

  3. in South Africa; compliant businesses are given grants…..not loans…..to retool.
    In Zim we give a 5c fuel reduction; after much debate; and exorbitant duties and taxes…..
    We are expected to compete…..
    Fuel in Bostwana – 80c – Zim $1.35
    Most expensive 1 hour flight in the region :
    Bulawayo to Joburg ave $700.00….why? airport taxes…Harare to Joburg – $250…
    Lets be realistic if we are to compete…..

  4. Governor tipewo ma serious please.

  5. Governor please stop the blame game you now talking like a politician , please own up and take responsibility.

  6. RBZ must up its act first. The Governor must justify his existence by dealing with the many mobile individual and illegal banks, dealing in all currencies, which have become a threat to formal banks.

  7. Ko how far picture yaMugabe behind Nyangudya, MaG40 ayo

  8. Severely Pissed off!!

    All along we’ve been disadvantaged by the systems they are managing and all of a sudden they are willing to liberalise things!? Investors are offered all sorts of tax incentives whilst we are bled to bankruptcy through taxation! Time bank was prejudiced a great deal because of their systems and he talks about banks want to come blah, blah! Can these guys do us all a favour and just resign!!!!

    severely Pissed off!!!

  9. The “news” that investors are coming to Zimbabwe is now boring…..they don’t seem to be arriving at all. Where are they? Are they being lured by the more organised countries surrounding us?
    Without the liquidity issue being addressed, those investors who “bring their money” will soon find it tough to repatriate their funds or re-tool, just like the existing local businesses.
    It seems the govt officials are seated, waiting for ‘things to happen” or “investors to come” instead of taking bold measures like abolishing the unwanted bond papers & coins.

  10. When is this guy resigning the bond notes thing has been a spectacular failure

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