Prof Mthuli Ncube's Economic Seppuku

 Weekend reflections with Sabhuku Nhopi

Prof Mthuli Ncube’s Economic Seppuku

02 July 2022

The past week has left many Zimbabweans’ faces in statue mode as they not only froze from the chilling winter temperatures, but also the shocking announcements made by current Minister of Finance Professor Mthuli Ncube who was sandwiched between the Finance Ministry’s Permanent Secretary George Guvamatanga and Mr. Andrew Bvumbe. The collective CVs of these men will turn heads as the Finance Minister is a former Vice President of the African Development Bank, while Permanent Secretary Guvamatanga has been at the helm of Barclays Bank Zimbabwe for more than 3 decades. To the Minister’s right sat Mr. Bvumbe a former World Bank Group Executive Director for Liberia.

What is Seppuku?

We will come back to the three men with impeccable CVs later on in this discussion. Seppuku or more commonly known by the Japanese as Hara-kiri is the act of bowel cutting as a form of ritual suicide usually performed by Samurai warriors. 

I will not delve much into the contents of the Economic pronouncements which saw the back and forth of the acceptance of the United States Dollar as a legal tender in Zimbabwe. This is a complete reversal of the statutory instruments which criminalized the use of the USD some years back. We are back to square one where we all started. In fact, for those not yet born that time, welcome to the year 2008 when the dollar was introduced as a legal tender in Zimbabwe. The only difference is that back in 2008, the economy had some semblance of confidence following the signing of the global political agreement between then President Mugabe and the President of the Movement for Democratic Change. This time around the axe of legitimacy is hanging over the heads of the powers that be as they assumed power in 2018 on the back of a deeply flawed plebiscite. The Finance Minister performed an economic seppuku which ensures that all systems still working in Zimbabwe will take the last gasp of air. The ‘reputable’ Minister introduced impromptu measures such as supplying grain to millers in the hope of arresting price hikes, and in turn inflation. The economy will not respond to such cheap politicking as the grain will simply run dry and we are again back to square one.

Professor Mthuli Ncube – Minister of Finance

The minister announced a raft of measures including the provision of housing allowances to civil servants. He did so in the back of health professionals who were protesting about the tools for use in their work. Renown journalist Hopewell Chin’ono has been indicating that all State hospitals have no working cancer machines and heart bypass as well as MRI machines for use to treat patients. The honourable Minister didn’t address any of these concerns as if the one who raised them is not Zimbabwean enough for his cause and that of many dying patients to be equally considered.  

In any case, back in 1991, then Dr Mthuli Ncube submitted a thesis for his studies titled “The dynamics of trade and economic relations in Southern Africa: Current status and options for the future.” In this piece of study, then Dr Ncube saw a future in SADCC as it was then named, with a common monetary currency which he suggested as the Southern African Common Market Area (SACMA) Dollar. To think of it that the honourable Professor has been in positions of authority across SADC but has failed to take this concept beyond the thesis paper is very worrisome. In that paper, the former Governor of the African Capacity Building Foundation also suggest a tight government expenditure to curb inflation yet the announcement last week saw a ballooning government expenditure which will definitely fuel more inflation. The same paper also suggested the introduction of a regional stock exchange which he saw as a viable option back in 1991, the same idea still hasn’t been implemented 31 years later. This now leaves many people with questions and doubts whether his current ideas actually work when what he suggested 31 years ago still haven’t seen the light of day.

The learned Professor has performed an economic seppuku and in the process played with the lives of Zimbabweans who yearn for a better Zimbabwe that is fast becoming a pipe dream under Zanu Pf. Stop gap measures do not run economies, and so are Statutory Instruments which are slowly replacing Legislation. To make matters worse, the Minister was unavailable to speak to people soon after the presser after only facing a handful of journalists to question his policies. Under a normal situation, the Minister tables a budget, and a raft of economic policies to arrest inflation and economic challenges to parliament where the law makers debate and interrogate the proposals. This did not happen, no wonder it becomes very difficult to get these policies accepted and workable.

George Guvamatanga

To the left of the Minister sat Perm Sec Guvamatanga. Although he was given a chance to address the journalists, it was very evident that this presser was arranged hastily with Guvamatanga sometimes seemingly wanting to interrupt the Minister throughout his presentation. This is the same man who hosted a plush 50^th birthday party in the leafy suburbs of Harare where he brought in Mafikizolo and Makhadzi to perform at the event. When the performers had finished, he promised to pay them 5 times the value of their invoice. A quick preview of the charges Mafikizolo demands per gig, is not less than ZAR80 000 excluding flights and hotel bookings. If he honoured his pledge, Mafikizolo smiled all the way to the bank as they pocketed a cool ZAR400 000 or roughly USD24 000 at the least. We do not know what Makhadzi pocketed but what is known is that she didn’t come cheap. He is reportedly quoted as having said he can’t pretend to be poor with the only surprising thing being that his riches are his personal which trick to make money he can’t replicate when it comes to government business.

Mr. Andrew Bvumbe

To the right sat less known Mr. Bvumbe whose is without controversy too. Like Prof Mthuli Ncube, he too worked at the African Development Bank as well as in Monrovia, Liberia as a World Bank Director. He is believed to have been an economic saboteur before by denying over 40 millers access to state-funded maize for affordable mealie-meal production. It is yet to be seen whether this time around this state funded wheat and maize meal will be available to all millers.

Governor John Panonetsa Mangudya

The fourth person was invisible and that is none other than Governor Mangudya. Although he didn’t sit at the panel, he was there in spirit and him too is without controversy as well, the famous of which was when he declared that if the bond note doesn’t work he will resign. The bond note didn’t work, he is still the Governor to date.

Conclusion

With what has been presented in this discussion, it is clear that the people who presented these raft of policies have no clean past and some of the policies they were proffering do not work. Zimbabwe will thrive again on the confidence derived from the legitimacy question as well as workable economic policies that arrest corrupt practices as well as leadership inefficiencies.

Sabhuku Nhopi is a political commentator you can find him on sabhukunhopi@gmail.com or follow him on Twitter @Sabhuku Nhopi or like or Subscribe to his music on his Youtube channel @Sabhuku Nhopi.