CSOs weigh in on Monetary Policy

6 Oct 2018

Civil Society Organisations (CSO) convened at NANGO to deliberate on the implications of the monetary policy on civic organisations and to forge a way forward. CSO leaders concurred on the need for the following:

CSOs should call for structural reforms in the RBZ.

Contradictions between the 2016 and 2018 monetary policies show that the government takes citizens for granted and places no value on public consultations.

Zimbabweans are already highly taxed (NASSA, ZIMRA payee, bank chargers, mobile tax, AIDS levy, local governance tax and now tax on transactions) and taxing them further may help government cover its debt at the expense of the people.

The impact of the announcement of the monetary policy hits harder ordinary citizens as it immediately led to an increase in pricing of basic commodities.

CSO leaders resolved to engage the Minister of Finance, the RBZ Governor and the President

CSOs demand that the governor should abide by the commitment he said that if the bond note does not work he is going to resign. He also said that there was no need of having a separate account and he is now going back on his word.

For economic transformation to happen, we need an environment that is predictable.

We need to be clear with our solutions. We should state in figurative ways e.g. how the debt rose to 9,5 billion. Present the problems, resolutions and timeframe.

These people should be able to look at our local problems and give local solutions. There shouldn’t be unilateral processes but the public must be consulted.

There was emphasis on the seriousness of the situation as people in rural areas are already in a dire situation. This also calls for serious resolutions by the authorities and to abide to their commitments

Regarding domestic debt, information of who is owed should be and so should expenditure patterns.

Recommendations

  • There should be engagement between CSOs and the Reserve Bank Governor  
  • Stern measures should be taken to ensure that the $9,5 billion debt should stop growing
  • Economists and the finance must give out figures in quantitative terms
  • In future the government should hold extensive consultations.
  • Reserve Bank Governor should explain to citizens how government accumulated such a big debt and the expenditure patterns
  • Separation of powers should be implemented. The Minister of Finance should play no role in dissolving the ZIMRA, an independent body.
  • The tax revenue should be used in a transparent and accountable manner in order for citizens to have assurance that the revenue is not misused

 

 

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