Paddington Masamha: Shadow Economy – Zimbabwe’s economic brain tumour

Paddington Masamha: Shadow Economy – Zimbabwe’s economic brain tumour 3

By Paddington Masamha The shadow (underground) economy is a major part of the Zimbabwean economy. A tangible number of urban and rural livelihoods are sustained by various incomes generated in these markets. Depending on time periods (pre- and post-election phases), government has been endeavouring to extinguish shadow markets. The most well-known cases include Operation Murambatsvina, Operation Chikorokoza Chapera (No illegal Panning), various operations against foreign currency dealers and vendors are recognizable amongst the most popular shadow economy eradication exercises. The post Paddington Masamha: Shadow Economy – Zimbabwe’s economic brain tumour appeared…

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Paddington Masamha: Shadow Economy – Zimbabwe’s economic brain tumour

Paddington Masamha: Shadow Economy – Zimbabwe’s economic brain tumour 4

By Paddington Masamha The shadow (underground) economy is a major part of the Zimbabwean economy. A tangible number of urban and rural livelihoods are sustained by various incomes generated in these markets. Depending on time periods (pre- and post-election phases), government has been endeavouring to extinguish shadow markets. Paddington Masamha The most well-known cases include Operation Murambatsvina, Operation Chikorokoza Chapera (No illegal Panning), various operations against foreign currency dealers and vendors are recognizable amongst the most popular shadow economy eradication exercises. Robustly, the shadow economy has remained unabated and evolved to…

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Paddington Masamha: Zimbabwe government’s unquenchable appetite for policy commandments

Paddington Masamha: Zimbabwe government’s unquenchable appetite for policy commandments 5

By Paddington Masamha Zimbabwean problems are multi-faceted. Pro-government analysts largely associate the source of our economic tribulations with the economic imperialism of the West currently being pursued in our motherland through sanctions. A contrasting view to this argument pinpoints dictatorship, limited democratic space, constrained economic freedom, massive systemic corruption and the decision making monopoly of one party among the most commonly cited reasons.   Paddington Masamha Emanating from an economic standpoint, a country’s economic system largely determines the functioning, growth and development of a nation. The Zimbabwean economic distress is…

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Paddington Masamha: Shortcomings and inconsistencies of the monetary regime in Zimbabwe

Paddington Masamha: Shortcomings and inconsistencies of the monetary regime in Zimbabwe 6

By Paddington Masamha The Zimbabwean monetary landscape has entered into a new financial locus. Through his 20 February Monetary policy statement, the Reserve Bank of Zimbabwe Governor has ‘with immediate effect’ transfigured our monetary system. The Reserve Bank of Zimbabwe (RBZ) Dr John Mangudya Driven by the desire to maintain foreign currency market stability, the monetary authorities established ‘… an inter-bank foreign exchange market in Zimbabwe to formalise the trading of RTGS balances and bond notes with US$s and other currencies on a willing-buyer willing-seller basis through banks and bureaux…

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Paddington Masamha: Struggle for currency stability in Zimbabwe: The life of RTGS dollars in the multi-currency basket

Paddington Masamha: Struggle for currency stability in Zimbabwe: The life of RTGS dollars in the multi-currency basket 7

Paddington Masamha: Struggle for currency stability in Zimbabwe: The life of RTGS dollars in the multi-currency basket – Nehanda Radio Home 2019 March 7 Opinion Paddington Masamha: Struggle for currency stability in Zimbabwe: The life of RTGS dollars in the multi-currency basket Source: Nehanda Radio

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Paddington Masamha: Foreign and Domestic policy congruence…. a key FDI ingredient

Paddington Masamha: Foreign and Domestic policy congruence…. a key FDI ingredient 9

By Paddington Masamha Economic history is pregnant with case studies of nations which have magnetized sustainable foreign direct investments through maintaining clear, consistent and harmonious foreign and domestic policies. In contrast, since the early 2000 Zimbabwean local, regional and international policies have been higgledy-piggledy. As a result, Zimbabwean foreign direct investment (FDI) has been depressed. Paddington Masamha Fundamentally, the competition for FDI is aggressive the world over. As such, whenever foreign investors are evaluating potential investment destinations, major consideration is placed on the country’s institutions, policies (both foreign and domestic),…

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Paddington Masamha: The paradox of Zimbabwe is open for business – Part 2

Paddington Masamha: The paradox of Zimbabwe is open for business – Part 2 10

By Paddington Masamha The previous article focused on heralding the misalignment between the ‘Zimbabwe is Open for Business’ pitch against the widely used international proxies for gauging national market openness. Paddington Masamha Using statistical evidence from Zimbabwean international ratings with regards to ease of doing business, economic freedom, human rights, corruption and international competitiveness benchmarks; Zimbabwe cannot be categorized as a nation open for business. The writer however strongly applauds the general change in the international tone and efforts for international re-engagement. Related Articles Over and above the micro-level business challenges,…

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Paddington Masamha: The paradox of ‘Zimbabwe is Open for Business’ (Part 1)

Paddington Masamha: The paradox of ‘Zimbabwe is Open for Business’ (Part 1) 11

By Paddington Masamha The Zimbabwean economic and political situation has moved to another level. From the pre-election period, twin catch phrases such as ‘New Dispensation’ and ‘Zimbabwe is Open for Business’ became the twin national buzzwords. Zimbabwean Finance Minister Mthuli Ncube (File: AFP) The post-election phase incubated a new fiscal exhortation dubbed, ‘Austerity for Prosperity.’ Undoubtedly, the tripartite verbal encouragements are a welcome development by virtue of being positive political and economic aspirations. However, this opinion piece endeavours to delineate between the economic realities on the ground vis-a-viz the promised economic…

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Paddington Masamha: Bond note value destruction and price erraticism in Zimbabwe – Part 2

Paddington Masamha: Bond note value destruction and price erraticism in Zimbabwe – Part 2 12

By Paddington Masamha When Zimbabwe adopted the multi-currency system, any currency from the basket of currencies was accepted as legal tender within the financial system. When the liquidity crisis supervened, the relevant ministries introduced bond coins and later on bond notes on a 1:1 peg. Reserve Bank of Zimbabwe Governor John Mangudya presents his Monetary Policy Statement, while Finance and Economic Development Minister Professor Mthuli Ncube and Permanent Secretary George Tongesayi Guvamatanga look on at the RBZ in Harare. —(Picture by Tawanda Mudimu) The Reserve Bank of Zimbabwe (R.B.Z.)’s 4…

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