ED sends Mthuli straight under ZUPCO

Share on facebook
Share on google
Share on twitter
Share on linkedin
……..whither policy consistency In his 2020 budget, Finance Minister Mthuli Ncube had a detailed section dealing with what he called ‘Subsidies and Other Market Distortions.’ He correctly highlighted that ‘_…..subsidies present an additional risk to macroeconomic and fiscal stability._’ To be specific, he highlighted subsidies related to Command agriculture, ZESA financing and fuel as having led to significant budget deficits in prior years. Amongst other measures, the Minister announced an intention to remove the (then) existing grain marketing subsidies for maize and wheat that were being provided to Grain Millers through the Grain Marketing Board. Ultimately, the GMB and the millers would have had to sell or acquire these two commodities at the market determined prices, even if it meant importing. Before the ink had dried, and in typical ZANU PF style, the President reversed this at a youth rally in Kadoma some weeks ago! The President claimed not to have been consulted when this policy initiative was being crafted. What hogwash! In response, and embarrassingly, Mthuli was forced to issue new measures last week announcing the restoration of the subsidies. This is one of the very many reasons why the citizenry finds it difficult to believe anything that comes out of this government, no matter how noble it seems. Decent policies have been and will continue to sacrificed for political expediency.

Share this post

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email

Recent Rates

Other Posts

About Us

We are a team of independent analysts whose primary focus is research into the Zimbabwean parallel markets as well as the stock market. We strive to bring you the most accurate rates in the market and our independence means we have no bias on these rates. You need to make your business decisions and we strive to be your best source of information.

Disclaimer

As Market Watch we do not deal in the parallel market nor do we quote on behalf of any other person or company. We are not traders and cannot be accountable for any decisions you make around our data. We are researchers only so please do not assume our information is accurate. Our information comes from various sources including social media as well as market informants on the street. For official USD and RTGS rates please consult your banking partner or the Reserve bank of Zimbabwe. Please note it is illegal to deal on the parallel market and we strongly advise against it. Our platform documents the rumoured parallel market that is mentioned on social media and various other sources.

The Lingo

OMIR

The ‘Old Mutual Implied Rate’ is a comparison between the Old Mutual share price on the London stock exchange / the Johannesburg stock exchange and the Zimbabwe stock exchange. Effectively RTGS is valued at 1:1 with the USD, but this difference in share price gives us the implied countries exchange rate.

RTGS

Real-time gross settlement systems (RTGS) is a funds transfer system where money transfer takes place from one bank to another on a “real time” basis and “gross” basis. Settlement in the “real time” means that the transaction happens almost immediately.

BOND

The Zimbabwe Bond Note is a surrogate currency issued by the Reserve Bank of Zimbabwe. This was originally issued against a loan facility from the African Export-Import Bank. The Bond Note is officially 1:1 however the market seems to have significantly discounted the value of the Bond Note.

ZAR

The symbol ZAR is the currency abbreviation for the South African rand.