Zim bids good-bye to economic austerity measures: Mnangagwa

PRESIDENT Emmerson Mnangagwa on Thursday announced an end to Zimbabwe’s economic austerity measures, saying government had put in place mechanisms that allow for economic growth.

Addressing members of the Zanu PF central committee ahead of the party’s 18th National People’s Conference, Mnangagwa said his government was happy with the current economic changes in the country, which he said prompted them to abandon the measures.

He said the introduction of austerity measures was meant to resuscitate the drowning economy.

I am happy to say that relevant macro economic fundamentals are now in place, and we have ended the austerity measures,” Mnangagwa said.

He said this was made possible after the introduction of a mono currency (Zimdollar), with government having realised that no country could succeed using other countries’ currencies.

The President said a mono currency was essential for the country’s  economic growth.

Mnangagwa said the nation should now push for productivity in order to ensure sustainable development in the country.

He said his government would not be swayed and made to repeat past mistakes, adding they were now looking forward to gradual economic growth.

He also said it was now time he fought against populist policies that have had a tendency to destroyed the economy.

We must strengthen our resolve to correct the past wrongs and wrong decisions we made economically. Populist policies and initiatives for short-term benefits have dire long-term implications,” Mnangagwa said.

The announcement comes at a time the majority of Zimbabweans have failed to recover economically since he took over from the late former President Robert Mugabe.

Analysts say basic living conditions for many Zimbabweans have deteriorated while many public institutions have collapsed. 

Doctors continue with their industrial action after declaring incapacitation three months ago, accusing the government of negotiating in bad faith.

Teachers and other civil servants have also demanded the reviewing of their salaries in United States-dollar rated salaries, arguing that their Zimdollar salaries no longer matched the actual cost of living.