JULY 2014 MONETARY POLICY STATEMENT
BACK TO BASICS: Setting the tone for Zimbabwe’s Economic Recovery
DR J.P. MANGUDYA, GOVERNOR
1. My maiden Monetary Policy Statement is issued, in terms of the Reserve Bank of Zimbabwe Act [Chapter 22.15] Section 46, at a time the nation is seeking for solutions to deal with the challenges besetting the economy. I feel greatly honoured to have been given the opportunity to serve the country as Governor at this juncture in the history of Zimbabwe. At a time the nation needs to work as a team to confront the challenges facing the economy. We are in it together as a nation. We cannot be bystanders. We need to put in place bold and pragmatic measures for the recovery of the economy. This is our motherland where no one else is going do to it for us. We are by ourselves. We are the people whom we have been waiting for.
2. It is undeniably clear that the indisputable panacea to the challenges that the economy is facing is to stimulate PRODUCTION for economic recovery through pursuing consistent, transparent and predictable economic policy measures. This compels the nation to go BACK TO BASICS in order to effectively tackle the challenges.
3. We need to increase production of goods and services in this economy in order to increase economic growth, employment, exports, tax revenue, tax base and liquidity. Economic growth is key to economic prosperity and poverty reduction. Zimbabwe has come a long way and too many things have happened and said about this country, good and bad ones. We now need to move forward without looking backwards. Whatever made us to be where we are today should now be treated as history. The time to move forward to achieve the goal of economic prosperity is now. It's doable. We can do it. We must do it.
4. It is against this backdrop that this Monetary Policy Statement, which takes into account the objectives enunciated in the economic blueprint, Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZimAsset), is being presented to give impetus to economic recovery as was recently proclaimed by His Excellency, the President, Cde R. G. Mugabe.
5. The solutions being proffered in this Statement require a TEAM ZIMBABWE Approach and BACK TO BASICS values/principles to pursue the ZimAsset shared vision of "Sustained Growth of the Economy for the betterment of Zimbabweans" and to become a middle income country by 2020. The BACK TO BASICS values include;
Respect of the rule of law;
Respect and love of each other as patriotic Zimbabweans;
Respect the environment;
Policy clarity, consistency, transparency and predictability;
Nurture positive business culture;
Nurture productive work ethics and culture to take responsibilities;
Visible fight against corruption, smuggling and profiteering;
Inculcate a culture of paying (bills, loans, duties, etc); and
6. As Monetary Authorities, we are confident and optimistic that the above back-to-basics and discipline principles are achievable. We have, as Zimbabweans, done it before and there is no reason to think otherwise. We need to be positive and minimize negativity in order to turn around the fortunes of this economy. The challenges we are facing as a nation are not insurmountable.