Joseph Chirume
In recent weeks, Zimbabwean President Emmerson Mnangagwa has shot himself in the foot (politically) not once but twice, and the beleaguered leader now faces calls to step aside.
Mnangagwa – who is known as Ngwena or the crocodile in Shona – recently made a series of controversial decisions, most notably the calls to ban privately-run public transport services and banning banks from offering loans to clients.
When Mnangagwa announced the abolition of private transport companies, he immediately faced accusations of trying to create a monopoly for the state-owned Zimbabwe United Passenger Company (ZUPCO).
Mnangagwa, accused of having personal financial interest in ZUPCO, couldn’t withstand the overwhelming public outcry and this week decided to make a U-turn on the law.
This caused the Zimbabwean dollar to plummet while desperate passengers queued endlessly to ride the few ZUPCO buses available.
Over the weekend, Mnangagwa again played another stonker of a hand by banning banks and other financial institutions from offering loans to their clients, arguing there was an overflow of currency that was causing inflation.
Zimbabwe Banks and Allied Workers Union (ZIBAWU) have expressed deep concern at the decision.
“Our main worry is the banning of lending by banks. We have consulted widely and are of the view that this is one of the policies that will result in serious unintended consequences,” the organisation said in a statement.
“One of the functions of banking is lending. Taking away part of the main function of the banking sector is surely a way of destroying the whole sector. Some departments are going to close.”
Fadzai Mahere, spokesperson for the opposition party Citizens Coalition for Change, said, “Mnangagwa’s mantra when he got into power was ‘Zimbabwe is open for business,’ but he has effectively closed the country for business.”
But the Zimbabwe Reserve Bank says it is a short-term measure saying, “If your pipe is putting water in an overflowing tank, close that tap to use what is in the tank.”
