Press Article – Australia Zimbabwe Business Council (AZBC) Zimbabwe Dollarization.
The dollarization of Zimbabwe has been a controversial and turbulent matter since its inception. Zimbabwe finds itself in the uncomfortable position of being forced to use the currency of foreign countries, in particular the US dollar.
Public opinion on the effect of this Zimbabwe’s dollarization is heavily divided. There have been wide spread complaints that dollarization has resulted in the downfall of competition and growth across the country. Large companies such as Delta Corporation, Dairibord and National Foods, to name just a few, have all stated that purchasing local products for production is excessively difficult due to inflated prices when compared with foreign goods – even those from neighbouring countries.
The blame for this situation has been laid by many, squarely and firmly at the feet of dollarization.
In addition to these economic woes, many Zimbabweans object to dollarization on the grounds of what they perceive as the loss of their monetary independence, and that dollarization was a superficial solution to a complex problem.
However, the Governor of the Reserve Bank of Zimbabwe, Dr John Mangudya, paints a different picture. Dr Mangudya claims that the Zimbabwe’s financial woes are purely economic in origin, and that dollarization is not to blame in the least.
Dr Mangudya says that the way forward is the forcing down of costs, by reducing the price of utilities etc, and by rebooting the economy through growth of productivity, exportation, investment and employment. Through these strategies, Dr Mangudya hopes that Zimbabwe will become a fully involved member of the global economy.
Dr Mangudya made it abundantly clear that there are no plans to abandon the controversial dollarization. He stated “Usage of Foreign exchange as our domestic currency is the new normal. Dollarization is therefore, our new normal for stabilizing and growing the economy.”
The Australia Zimbabwe Business Council, while remaining strictly non-political and non-partisan, strongly agrees that investment and trade are integral parts of the pathway forward for Zimbabwe and its people. The evolving face of commerce in Zimbabwe has created fantastic opportunities for increased growth and trade, both in Australia and in Zimbabwe.
And the hotly anticipated benefits are expected to accrue over time, rather than overnight.
This means it’s essential to have a long term strategy if you are keen to do business with Zimbabwe.
This starts with developing a deep understanding of the Zimbabwean market and how to do business in itThe AZBC remains committed to facilitating such economic relations between Australia and Zimbabwe wherever possible.
Contributed by Samuel Sebenzo National Chairman AZBC
Sam Sebenzo
Mr Samuel Sebenzo is an entrepreneur and highly experienced businessman. He has numerous qualification in the IT sector and worked for a number of IT companies, fulfilling technical roles and taking on customer service and leadership positions. Mr Sebenzo went on to establish several of his own companies.
His experience in the founding and running of these companies’ places him in a unique position oversee the management of the AZBC and to advise AZBC members.
Mr Sebenzo is passionate about supporting and encouraging others in their business endeavours, and is thus extremely committed to the AZBC and its members.
Media enquiries may be directed to the AZBC Media Team media@azbc.org.au
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