By Nevison Mpofu
President Mnangagwa delivered a State of the Nation (SONA) address at the New Parliament Building in Mt Hampden, Harare, on Wednesday, 2 October. Concurrently, the President also opened the Second Session of the 10th Parliament of Zimbabwe. The address was televised live by the national broadcaster and several radio stations across the country hence allowing all citizens to hear President Mnangagwa’s vision for the country’s future.
The address couldn’t have come at a better time. Just days preceding the address, Zimbabwe’s local currency, Zimbabwe Gold (ZiG), was officially devalued by 43%, hence eroding the purchasing power of the currency. With the nation still trying to come to terms with the developments, many political analysts viewed the SONA address as the perfect opportunity for President Mnangagwa to calm the nation and allay any fears of an economic collapse.
Speaking on the currency issue, President Mnangagwa said the recent devaluation of the currency and the overall currency volatility is a result of speculation, which he said must be curtailed. He said the measures implemented by the Reserve Bank of Zimbabwe (RBZ) to devalue the currency is the first step to liberalize the currency market.
“Currency stabilization is at the core of macro-economic stability. The adoption of the Zimbabwe Gold (ZiG) in April 2024, was an important step towards stabilizing the domestic currency anchored by our gold and eight precious metal reserves. It remains the duty of all of us to respect and abide by measures and instruments intended to maintain economic stability and tame inflation,” President Mnangagwa said.
While he highlighted the challenge, he shied away from laying out the details of how his administration will effectively address and solve the currency challenge. By simply referring to the liberalization of the currency market, something his administration has promised on several occasions but failed to implement, President Mnangagwa simply regurgitated what many citizens refer to as propaganda.
While many economists have proposed currency reforms as well as banking sector reforms if the country’s economy is to rebound, President Mnangagwa, in his speech, seemed pleased with the status quo when it comes to the banking sector. He said that the banking sector was on a sound footing with sufficient capital and liquidity buffers, while profitability, asset quality, and liquidity matric have also remained stable.
In light of his pronouncements, the issues that many Zimbabweans from all walks of life have been crying about, such as high bank charges, exorbitant electronic transaction charges, as well as liquidity challenges, are set to remain as nothing concrete will be done about it. Zimbabweans will thus have to brace themselves for the continuation of the same challenges.
Apart from the currency issue, President Mnangagwa called upon the Parliament to expedite the enactment of all outstanding Bills from the previous Sessions. He said the enactment will go a long way in smoothening the operations of the government. Some of the outstanding Bills that the Parliament needs to work on include the Persons with Disabilities, Administration of Estates Amendment, Civil Aviation Amendment, Death Penalty Abolition, Parks and Wildlife Amendment, Private Voluntary Organizations Amendment, and Mines and Minerals Amendment.
With regards to El-Nino-induced drought and all its effects, which are being felt largely by the marginalized and vulnerable, President Mnangagwa said his administration has introduced feeding schemes at schools to ensure that every child has a meal every day. He also said the Grain Marketing Board (GMB) opened agro shops selling affordable food to everyone and that the Presidential Borehole Drilling Programme will ensure that all communities get access to clean water for domestic use and livestock. He also said the country’s begging basket will remain open to all those who feel the need to donate.
Commenting on President Mnangagwa’s SONA address, economic analyst, Prosper Chitambara highlighted that the President was supposed to look at the Energy crisis. He pointed out that for the country to open up its business, energy is critical.
‘’The focus in Zimbabwe right now must be on energy. This is one key imperative area which, if visited, unlocks the potential of the economy. Once we make the energy crisis a solvable issue, then we can move on in all sectors of the economy. ‘’
Peter Mutasa of Crisis Coalition Zimbabwe said workers expected him to talk about pressing issues at hand. He pointed out that workers’ salaries have lost value because of the new currency, ZIG. He pointed out again that the President was also supposed to talk about human rights and political persecutions.
‘’Workers expected him to look at most pressing issues like meagre salaries which lose value nearly every month. Workers are struggling to survive.This is one thing to be taken into consideration. The President did not as well talk about human rights and political persecutions’’.
Gauging by the commentaries from political and economic experts as well as the general public, President Mnangagwa failed to highlight the main issues affecting the nation. When he highlighted the issues, he failed to illustrate comprehensively the interventions that his administration is going to implement to change the lives and livelihoods of Zimbabweans.
