Economic fundamentals point to stability: President Mnangagwa

By ZBC Reporter
PRESIDENT Emmerson Mnangagwa says the economic fundamentals are stable and have been enhanced by the Reserve Bank of Zimbabwe’s foreign currency auction system as well as a crackdown on errant businesses in the mobile telecommunications industry.

President Mnangagwa and his delegation were briefed on the operations of Proton Bakery by Chief Finance Officer Kelvin Mundeta. Who indicated that the company has installed capacity of 140 000 loaves a day and is operating at 78% of capacity.

“The company has been constrained by a shortage of wheat in the country considering that the company requires 60 tonnes of flour to operate at full capacity,” he said.

Proton Bakery appreciated efforts being made by the government in stabilising the country’s economy mentioning the introduction of the foreign currency exchange system which has played an import role in economic stability.

“The introduction of the foreign exchange auction market has brought stability and sanity to the markets and thus has enabled us to source raw materials and machinery spares. The reduction of corporate tax from 25% to 24 % together with VAT reduction from 15% to 14.5%, help the business to retain funds to continue funding its working requirements,” he said.

The company also commended the government for bringing peace and stability which is enabling businesses to operate without hindrances and interferences.

“Reduction of electricity power cuts which have significantly reduced the cost of expensive back-up power, the pro-business policies by the government which make the macro-economic environment more predictable and planning easier. Focus on critical infrastructural projects such as a good road network, providing the enabling environment for the business,” he said.

“Proton employs in excess of a thousand people and requires lots of wheat to ensure the business runs throughout the year. Mashonaland East is one of the provinces better positioned to increase the production of wheat in the country. This year, Zimbabwe expects to achieve 250 000 tonnes of wheat, more than doubling last year’s production and thus inching nearer the goal of national wheat self-sufficiency.

President Mnangagwa noted with satisfaction that fundamentals in the economy were beginning to stabilize with special mention to the auction system and crackdown on errant business malpractices led by mobile telecommunication operators.

He also noted that this year’s wheat production has moved from three months national supply to over eight months of national needs with prospects of reaching national self-sufficiency in the next three years owing to expanded irrigation capacity.

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