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"Exchange Rate Manipulation Equal Economic Sabotage"



The Herald

President Mnangagwa
Before I begin my speech, I ask the August House to take a minute's silence in honor of the deceased founding father of our country and the former President, His Excellency Cde RG Mugabe, who died on the 6th. September 2019 passed away.

If we remember him, let us encourage the fact that we can not change the past but the future is in our hands.

Mr. Speaker Sir;

My government continues to take courageous and determined steps to open and expand the economy for the benefit of all our citizens.

The roadmap formulated in our Vision 2030 with the TSP (Transitional Stabilization Program) as The decisive building block is consistently pursued. We reform our economy, we reform the political space and the very fabric of our society.

The nation's positive response to the currency reforms we have initiated has encouraged me.

The government is equally satisfied with the relative stability of the exchange rate over the past eight weeks. The events of last week's foreign exchange manipulation, however, represent economic sabotage and should not be tolerated. We all need to respect the rule of law and promote discipline at all levels.

We are committed to consolidating digital financial services that help create financial inclusion by providing banking services to previously unbankable and vulnerable groups of people.

To further support the development of the financial services sector, the government has revived the issuance of Treasury bills and bonds through the auction system. In this sense, the RBZ has created instruments for savings bonds in order to provide the public with safe investments.

In addition, measures will be taken to set up the SME Stock Exchange to release funds for SMEs. [1

9659004] Mr. Speaker Mr.;

The government is aware of the challenges facing the public in accessing cash, which has led some unscrupulous traders to sell cash for electronic money. Appropriate measures will be taken to address the liquidity situation, including the gradual elimination of arbitrage opportunities created by multi-level pricing. In the first half of 2019, a budget surplus was booked. These savings have allowed the government to cover significant unplanned expenses, particularly in connection with the rehabilitation of damaged infrastructures and support to livelihoods of communities affected by Cyclone Idai. Providing social services, adjusting the cost of living for civil servants and providing social safety nets to the vulnerable members of our society.

Mr. Speaker Mr.;

The continuing shift in our economy depends on the targeted support of the productive sectors, especially in agriculture, mining and manufacturing. In the drought 2018-2019 our agricultural sector registered a negative growth rate.

In the future, the government has earmarked 1.8 billion ZWL for the production of strategic crops such as corn, soybeans and cotton. Of this amount, ZWL 567 million, ZWL 4 million were allocated for the provision of LFA services and CWL 332 million for the provision of cotton production inputs. With a total of 968 million ZWL, the 2.8 billion ZWL proposed by banks and the private sector to support the Command Agriculture program will be increased.

Let me explain shortly that these are only those that have been proven to supply GMB, and the repayment of their loans is supported under the Command's agricultural program.

To strengthen our resilience to climate change, the government encourages municipal, A1 and A2 farmers to grow traditional crops.

The implementation of the irrigation development program will also be accelerated. A $ 60 million facility has been set aside to repair machines under the Command Agriculture Program. $ 51 million has been earmarked for the delivery of John Deere's various farm equipment, some of which are already being delivered.

In the meantime, the government will accelerate the completion of a facility with the Government of Belarus for the import of tractors and planters and combine harvesters.

In order to make production more affordable for our farmers, the government is taking steps to facilitate duty-free imports of fertilizers, targeted electricity subsidies and local production of fertilizers, including complete extraction of phosphorus from Dorowa

The government is currently working on a program to use dipping chemicals and improve overall livestock practices. The research of our colleges and colleges for the local production of vaccines against foot-and-mouth disease has started with government support.

Mr. Speaker Sir;

The mining sector continues to be an important source of export earnings, income, employment and the preferred destination for investment inflows. In the first half of the year, the sector generated $ 1.3 billion, or 68 percent of the country's total export income.

We will shortly present a comprehensive strategy and roadmap for achieving $ 12 billion in mining in Zimbabwe by 2023. Achieving this goal will be possible through concrete green spaces and expansion projects at various stages of implementation.

Mr. Speaker Mr.;

Our manufacturing sector offers tremendous opportunities for growth through production links to the rear and to the front. I am pleased to note that some companies are gradually increasing their production and exports. The introduction of a mono-currency system should also strengthen the competitiveness of our manufacturing industry.

In addition, the government is stepping up its support for the sector through tariff exemptions for raw materials and capital goods, tax breaks and public holidays for priority projects and other import control measures. This approach is based on the implementation of the recently adopted National Industrial Development Strategy in Zimbabwe and on local content.

Mr. Speaker Sir;

To promote trade and export, the modernization of the Beitbridge Border Post and bilateral negotiations for the construction of one-stop border posts in Victoria Falls and Beitbridge continue. The introduction of intelligent technologies to accelerate cargo handling at our ports of entry will be accelerated. As Zimbabwe, we continue to help drive the economic development agenda of SADC, COMESA and the African Union. In partnership with the private sector, we intend to make the most of the operationalization of the African Continental Free Trade Area.

Our companies are encouraged to take advantage of the opportunities that Zimbabwe offers as a transportation and logistics hub. This follows the commissioning of the dry dock Zimbabwe Walvis Bay in Namibia in conjunction with other confirmed bilateral investments.

Our SMEs continue to face the challenges of inadequate technologies and inappropriate workspaces. The Government of India has since received a grant of $ 2.7 million for the modernization of 11 existing technology and facility centers in the country's 10 provinces. Other state-of-the-art SME manufacturing equipment is currently being installed. In the future, the government will be committed to supporting programs to build suitable jobs for SME companies.

I am also pleased that the Zimbabwe Women's Micro Finance Bank, in line with the government's policy to strengthen female entrepreneurs, continues to provide loans to customers across the country.

Mr. Speaker Mr.;

The government accelerates the operationalization of the Zimbabwean Investment and Development Agency.

In addition, we have started implementing the second phase of the Economic Efficiency Reform Program. It is gratifying that Zimbabwe has been recognized by the World Bank as a country that has made significant regulatory improvements in five areas, measured by the simplicity and cost of doing business. This has made Zimbabwe one of the 20 most successful countries in the industry.

Mr. Speaker Sir;

Due to the effects of climate change, our economy faces major power supply challenges due to the reduced hydropower generation capacity at the Kariba Dam. To counteract this, we have now restored the cost-based electricity tariff structure and increased electricity imports to provide much-needed short-term relief. Other innovative initiatives are being implemented to ensure industry stability. In the meantime, ZESA is being restructured to increase efficiency. I urge all of us to protect the power systems in our areas. At the community level, initiatives need to be developed to stop criminal activities destroying these vital assets.

The country has noted some stability in the fuel sector due to the introduction of fuel price adjustments by the Government's structured procurement financing facilities. Foreign currency companies are now allowed to purchase their fuel through registered oil companies. To curb maladministration in the fuel industry, the government will soon introduce an electronic national fuel monitoring system. In the long term, a comprehensive national plan for integrated energy resources is being prepared

.

The modernization and rehabilitation of our infrastructure, especially the road networks, has been seriously resumed with noticeable progress.

Given that these are the key requirements for our economic recovery under the Vision 2030, we are determined to exceed the quality of our infrastructure across the country.

So far, a total of 2.5 billion ZWL, representing 34.5 percent of total capital development, has been allocated to various transport, water and public utilities, energy, irrigation, social services and other infrastructure projects.

The Hwange 7 and 8 thermal power project, the expansion of RG Mugabe International Airport, the rehabilitation and drilling of wells, and the construction of the new parliament building are on track. Dam construction projects such as the Marovanyati Dam, the Gwai Shangani Dam and the walling of the Causeway Dam are also on schedule.

The tourism sector continues to grow and generates revenues of approximately $ 1.3 billion. To accelerate this growth trend, robust strategies are being pursued to boost investment in accommodation and conference facilities and expand our tourism product offering. I urge industry players to be more flexible, to introduce more competitive pricing systems, and to market our attractions with partners from the region and beyond.

Mr. Speaker Sir;

Significant steps in the implementation of the reforms of public enterprises were:

Splitting of GMB into the GMB Strategic Grain Reserve and Silo Foods Industries

Recapitalization of the NRZ

Recapitalization of CSC, its recognized strategic Partner is already on site.

Unbundling of the Civil Aviation Authority of Zimbabwe (CAAZ).

] Approval of the timetable for the privatization of TelOne and NetOne as a unit by the Cabinet and

the partial privatization of Allied Timbers, POSB, Zupco, Agribank and IDBZ.

Mr. Speaker Sir;

It is our responsibility to ensure that our nation nurtures proactive patriotic young citizens who are able to protect their heritage. As part of the ongoing Build Zimbabwe program, the government has mobilized thousands of young people from across the country to volunteer in their respective communities.

In the meantime, Empower Bank continues to build its capacity through financial inclusion programs and financial training across the country.

In the healthcare sector, the government is taking steps to revive the referral system by improving medical infrastructure and equipment in clinics, district hospitals and central hospitals. At this point I would like to thank the United Arab Emirates (UAE) and the Government of India, along with other partners, for their generous support in modernizing and revising our health care system.

Mr President, Mr President! ;

We continue our commitment and commitment to the international community. We remain committed to the SADC after a landmark decision was taken in August this year at the 39th Summit in Dar es Salaam, Tanzania, which called for the Member States to jointly demand the lifting of the illegal sanctions imposed on our country on 25 October. Zimbabwe deeply appreciates this gesture of friendship and solidarity.

The 74th General Assembly of the United Nations, which took place only last week, gave us another opportunity to advance the national interests of our country and highlight our path of transition, reform and growth. Our participation in meetings within the China-Africa Cooperation Forum (FOCAC) and the Tokyo International Cooperation for African Development (TICAD) also contributed to this goal. In all these forums the discussions were open, positive and productive.

Zimbabwe and the European Union officially launched their dialogue in June 2019 under Article 8 of the Cotonou Partnership Agreement. The resumption of cooperation with the Commonwealth is still ongoing. The last session took place on the sidelines of the 74th UN General Assembly.

Mr. Speaker Sir;

Let me now move on to the Legislative Program, which will have to re-force the Second Session of the Ninth Parliament. I welcome the progress made in aligning our country's laws with the Constitution.

This development will undoubtedly help to further anchor democratic traditions, the rule of law and constitutionalism in our country.

The Second Session of the Ninth Parliament It is expected that the alignment process will be continued by considering amendments to the High Court Act, the Labor Court Act, the Magistrates Court Act and the Police Act.

Mr. Speaker Sir;

The bill amending the public financial management is presented to this Parliament in order to adapt the current law to the Constitution.

In line with decentralization, this bill extends the scope of legislation to provinces and city councils and municipalities, including the compulsory submission of annual budgets and financial reports.

The Insurance and Pensions Act is amended to ensure responsible corporate governance, while the Securities and Exchange Commission (US Securities and Exchange Commission) Act seeks to strengthen the fight against money Anti-Money Laundering Act.

The bill to facilitate the appointment of the Deposit Guarantee Scheme to the liquidator of all deposit-taking institutions is also presented. It is expected that the law amending the Gold Trade Law and the Gemstone Law will be re-tabled to ensure that our mining industry is more competitive and in line with global standards.

The government has noted with concern the emergence of monopolies and cartels that suppress competition and lead to unjustified price increases. While the government will not resort to price controls, we are in the process of revising the competition law to impose dissuasive sanctions against such maladministration.

In the energy sector, the mineral oil law is amended to create a new regime environment for the exploration and exploitation of natural gas and mineral oil. The Electricity Act provides for stricter penalties for vandalism and theft of electricity infrastructure and equipment.

As the pace of media law reforms increases, the Freedom of Information Bill, the Zimbabwe Media Commission, will protect information and the amendments to the Broadcasting Act will have to be speeded up during this session.

In the face of rapidly changing technology, new legal and administrative tools must continue to be researched and developed to secure the country's cyberspace. This session of parliament must therefore deal with the law on cybercrime and cybersecurity. and the Law on Privacy and Electronic Transactions to regulate this area.

The Pension and Provident Fund Act seeks to ensure compliance with international standards. The ultimate goal is to protect policyholders and retirees to fully enjoy their rights and benefits. The purpose of this law is to ensure that health care organizations legally act as health insurers instead of doubling as health care providers.

The Law on Prisons and Punishment, the Law on Children's Justice and the Law on Forced Rape and Sexual Offenses Must be Passed Adopting acceptable norms of custom, human rights standards and good international practices.

Amendments to the Immigration Act will pave the way for the establishment of a citizenship and immigration service under our constitution. It is also expected that Parliament will try to ratify the Protocol against smuggling of migrants by land, sea and air and the Protocol against the illicit manufacture and trade of firearms, their parts and components and ammunition Protection of the constitutional rights of persons with disabilities. The Law on a Private Voluntary Organization aims to streamline and strengthen administrative procedures and improve the governance of the non-governmental organization.

Mr. Speaker Sir;

The ongoing democratic reforms must consolidate the constitutional rights and freedoms of all Zimbabweans. The culture of fear and violence must be uprooted by our societies.

In line with this commitment to deepening our democracy, I have set up an inter-ministerial task force to address the political, electoral, legislative and administrative issues addressed by the EU 2018 Election Observation Missions and indeed the Motlanthe Commission of Inquiry ,

Mr. Speaker Sir;

The law must be a universal instrument of development. For this reason, the slow pace in this August House, which has led to only a few bills passing through Parliament, can not continue. I therefore call on the honorable Members, in their individual and collective capacity, to make their contribution to speeding up our parliamentary processes. Likewise, reports of mismanagement of public finances uncovered by the Auditor General's Office and brought before this Parliament must never be tolerated.

Corruption inhibits our development, thwarts our ease and cost of corporate reform and robs us of revenue. The government will continue to strengthen institutions that help fight corruption. We have to free our society from this corruption cancer, there is no going back. It is time to increase accountability and transparency. We have to work hard and smarter to serve our people. They deserve better.

Remember that Zimbabwe, which we all want, can be achieved with opportunities and hopes only through productivity, innovation, responsiveness, perseverance, deliberate planning, and disciplined alignment

We must therefore be commensurate with the opportunities and opportunities ahead Prepare challenges.

Our 2030 vision foresees a Zimbabwean with a digital and knowledge-based economy. As such, we will reinvigorate the implementation of the e-government program and operationalize the National Data Center to promote digital literacy across the economy.

Mr. Speaker Sir;

The initiated economic reforms are beginning to bear fruit.

I realize that the poor and marginalized have pain. Compatriots who want to get the economy going again need time, patience, unity and perseverance.

I am satisfied with the progress made in the ongoing dialogue on political parties and I am ready to welcome all the political parties that were fought over in 2018. Harmonized elections that are not yet part of this forum.

With these remarks, it is an honor and a privilege to file this speech on the nation-state and officially declare the second session of the Ninth Parliament of Zimbabwe.

God bless you all!

God bless Zimbabwe!

Thank you.


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