Zimbabwe must act now on economy – IMF

Reuters

Zimbabwe, it is necessary to act quickly to dig its economy out of a hole and access the international financial, the International Monetary Fund has warned.

Public spending and foreign debt are too high and in need of structural reforms, Zimbabwe chief of mission Gene Leon told Reuters news agency.

The country’s incoming leader Emmerson Mnangagwa has pledged to grow the economy and provide “jobs, jobs, jobs”.

Once thriving economy is now seen as a regional basket case.

“The economic situation in Zimbabwe remains very difficult,” Mr. Leon told Reuters.

He said the high public expenditure should be guided and Zimbabwe, should face the great international debt is coming less.

“Immediate action is essential to reduce the deficit to a sustainable level, to accelerate structural reforms, and re-engage with the international community to access much needed financial support,” Mr Leon said.
Five things Zimbabwe economy is in urgent need
Ten numbers that will help you understand what is going on
Mugabe is gone, but Zimbabwe change?

Robert Mugabe, who has led Zimbabwe for 37 years, resigned at the beginning of this week, under pressure from the military and his Zimbabwe-PF, the party.

Its policies, including the disastrous land reform and the print too much money, they are accused for the tragic state of Zimbabwe’s economy.

On Thursday, Zimbabwe’s main opposition party called for deep-rooted political reforms to dismantle the apparatus of repression that has supported the Mr regime of Mugabe.

The Movement for Democratic Change (MDC), said that it was a cautious optimism that a Mnangagwa presidency does not “imitate and replicate the evil, corrupt, decadent and incompetent regime of Mugabe,” he told the news agency.

It is not clear if Zimbabwe-PF govern alone before the time of the elections next year, or if a coalition government of national unity that includes the opposition groups will be formed.The economic slide

Zimbabwe’s economy is half the size it was at the turn of the millennium.

Zimbabwe has no currency of its own since 2009, when the old Zimbabwean dollar has broken below the hyperinflation that reached 231 million percent, worse even than the infamous levels in Germany after the first World War.

Cash shortage average Zimbabweans can often be seen queuing at the banks. Economists say that Zimbabwe needs a cash injection, but has been excluded from the loan to the international level since it began defaulting on its debt in 1999.

Some residents of the capital, Harare, say they have already seen an improvement in their daily lives, from the time that the army came to the streets and Mr Mugabe was forced from his office.

One of the advantages, they say, is the absence of police road blocks on the streets, where officers demand bribes from those travelling around.

“There were so many roadblocks of the police, with the driver having to pay $1 or $2 (75p-£1.50)” Spiwe Azvigumi, 31 years old, an unemployed mother of three children, he said .

“With the police out of the way, crime is actually down, they were so corrupt and now we are living free.”