Staff Reporter

Key stakeholders attending the Zimbabwe Economic Development Conference (ZEDCO 2023) in Victoria Falls have recommended that the government tackle the exchange rate and inflation in order to boost the economy.

Speaking to delegates at the same event, Secretary for Finance and Investment Promotion, George Tongesayi Guvamatanga, said that the government had been urged by participating stakeholders to curb exchange rate challenges and inflation.

“Stakeholders identified inflation and exchange rate instability as major challenges facing the economy with the potential to compromise medium- to long-term economic growth prospects. This scourge is negatively affecting the poor and low-income earners. The stability was identified as mainly emanating from money supply growth, which is feeding into the exchange rate and inflation instability.

“The recommendation was for the Government and the central bank to curb money supply growth and refine the foreign exchange system towards a market determined to achieve the desired stability.

“As part of confidence-building measures, the government was urged to implement the social contract (Kadoma Declaration). Related was the need for financial sector reform to ensure it effectively undertakes its mandate of financial intermediation role in a cost-effective manner,” said Guvamatanga.

Furthermore, Guvamatanga stressed that the country’s developmental partners would need a clear plan to finance the government's efforts to develop the economy.

“Let me take this opportunity to inform you that stakeholders in this conference have requested that the government provide the market and the economy with a clear currency reform roadmap as the financial sector is now hesitant to extend long-term foreign currency loans as the 2025 deadline looms.

“To ensure value for money and curb corruption both in the public and private sectors, stakeholders recommended innovative ways of adopting e-procurement management systems that eliminate human interaction and promote efficiency,” said Guvamatanga.

Meanwhile, different stakeholders have submitted research papers and contributions at the conference, clearly mapping challenges and offering policy solutions. The interactions are helping to consolidate views and inputs to help realise an upper middle-income society by 2030.