MARTIN MAWAYA
HARARE-The Zimbabwe Congress of Trade Union (ZCTU) has slammed the host of measures recently announced by the Minister of Finance and Economic Development, Mthuli Ncube to arrest the rot in the economy.
Nucbe, last week announced the removal of duty on all basic commodities as a way of combating a spike in prices caused by forward pricing by formal retailers.
In a statement last night, ZCTU secretary general, Japhet Moyo rapped the rescue package saying the measures will not improve the welfare of workers and Zimbabweans in general.
He said the Minister’s strategy will not help to stabilize the struggling economy as it was hastily implemented without adequate dialogue and consultation with all key stakeholders and partners.
“Measures such as 100% retention of domestic foreign currency earnings, adoption of all external loans by treasurer, enhanced foreign exchange auction system and even lifting of all restrictions on importation of basic goods is a nullity to a worker who is being paid in RTGS. There is nothing for the working poor who is choking under the yoke of high prices and low wages.
“The economy has effectively dollarized in terms of expenditure (with more than 70 % of total spending being denominated in USD). Most workers continue to earn their incomes in Zimbabwean dollars. There has been a massive erosion of real incomes with the workers being disproportionately affected while the proportion of the working poor has increased markedly,” he said.
He added that the gold and digital coins availed by the government are mere elitist deals to loot from the poor as workers cannot afford to buy them.
The labour board secretary general pointed out that the challenges with reforms in Zimbabwe is because they are being implemented from “the top down and this has plunged the economy into the abys in the first place, implying the trust and confidence deficit will continue to haunt the process”.
He said citizens are suffering as a result of wrong- headed policies that resulted in loss of value of the local currency, fiscal indiscipline, run away inflation and corruption.
However, some economic analysts commended the ministers interventions and scrapping of import duty saying the measures will allow consumers, small businesses and informal traders to bring in goods at no costs and compete with big local retailers which will eventually force them to reduce their prices.
Africa Economic Development Strategies executive director, Gift Mugano was recently quoted by the media applauding the 100% forex retention but however questioned government motive on import duty removal saying it’s an emotional idea which will drain the foreign currency.
