(TALKZIMBABWE) Statement on the Basic Commodity Supply Side Intervention Program
Statement on the Basic Commodity Supply Side Intervention ProgramDr Gideon Gono's statement on the Basic Commodity Supply Side Intervention Program (BACOSSI)
Tue, 29 Jul 2008 13:00:00 +0000
THIS is the full text of a speech given by the Governor of the Reserve Bank, Dr. Gideon Gono at the annual Midlands Agricultural Show in Gweru on July 26, 2008.
“BASIC COMMODITIES AVAILABILITY AND SOCIAL SAFETY, THE CASE FOR ZIMBABWE”
A PRESENTATION ON THE OCCASION OF THE MIDLANDS PROVINCIAL AGRICULTURAL SHOW OPEN DAY
BY DR. G. GONO
GOVERNOR RESERVE BANK OF ZIMBABWE
GWERU SHOW GROUNDS, GWERU
26 JULY 2008
SALUTATIONS
• The Honourable Governor of the Midlands Province, Comrade C.G. Msipa
• Leadership of the Midlands Show Society here present.
• Leadership of the Midlands Province Business and Farming communities here present.
• Fellow colleagues from the Financial Services Sector here present.
• Ladies and Gentlemen
• All protocols observed
INTRODUCTION
1. I feel greatly honoured and privileged to address this noble and certainly imperative gathering, where the whole Midlands Province converge to recognize and celebrate their economic productivity, as relates to the various economic sectors.
2. I am informed that since the early 1930s the Midlands Show Society has invested a lot of effort and hard work to make this show the most prestigious annual event in the Midlands Province and we commend the Show Society for that.
3. Again, your Governor is reliably informed that this year, more than 165 exhibitors are taking part in this grand event showcasing their businesses to at least 25 000 visitors who annually visit the show.
4. Ladies and Gentlemen, it is through these interactive get-togethers such as the one we have today that as stakeholders to this economy, we get time to reflect, exchange notes and cross-pollinate ideas in our collective endeavors to economically uplift our shared status as Zimbabwe.
5. In light of the above, your Governor is verily glad to be officiating at this gathering and certainly could not be happier being at any other place at this juncture.
6. My brief remarks today will focus on the current state of the economy, the attendant lack of basic commodities for the vast majority of our people and your Central Bank’s interventions in that regard.
7. Allow me, therefore ladies and gentlemen, to begin by sharing briefly on the current state of our economy.
THE CURRENT STATE OF THE ECONOMY
8. Currently, the state of our national economy is certainly far from what any Zimbabwean would want to see and endure.
9. As a nation, we find ourselves faced by the daunting task of healing an economy confronted by formidable challenges, largely accentuated by the multi-dimensional external factors.
10. From the external side, the economy is under pressure from the declared and undeclared sanctions on our various economic sectors especially with regard to access to foreign lines of credit.
11. In addition, Zimbabwe is not spared from the impacts of the rising international energy prices, especially petroleum.
12. Furthermore, internal but all the same exogenous factors such as droughts and floods have continued to militate against our national initiatives to rebuild our economy.
13. Ladies and Gentlemen, allow me to also point out that in as much as we are under intense pressure from the above external and exogenous factors, it would be naïve for us to forget that there are other factors affecting our economy that fall squarely within our reach of control as Zimbabweans.
14. Indeed, Ladies and Gentlemen, it is well within our collective capacity as Zimbabweans to realize that needlessly drawing spears against each other through internal squabbles only works to deepen the socio-economic challenges affecting our country.
15. It is another time tested truism, fellow Zimbabweans, that continued lack of unity and one common Vision as a People, at both political and commercial, as well as business levels coupled with high levels of indiscipline and bureaucratic inertia when it comes to implementing well-meaning Government programmes make it impossible for any society to achieve real progress.
16. Furthermore under utilization of our land and mineral resources as well as misaligned pricing and distribution policies and practices are other significant factors working to hold back our national economic progress.
17. All these factors are conspiring to cause an agonizing establishment of ridiculous price increases, shortages and consequently skewed distribution practices where basic goods are only available an affluent and connected few while the common man and woman in both urban and rural areas in particular are struggling to just survive.
BASIC COMMODITIES SUPPLY AND SOCIAL SECURITY.
18. In light of the above-described state of our economy and its attendant impacts on basic commodities supply, especially with regards to food items, allow me, Ladies and Gentlemen to highlight briefly on the critical subject of the importance of basic commodities availability in the face of the current global food security challenges.
19. Availability of food and other basic commodities have immensely transformed in level of importance over the recent past, not only in Zimbabwe but across the globe as food availability has become a major determinant for peace, national cohesion and security if food related disturbances that swept across the world a few months ago are anything to go by.
20. The sensitivity of basic commodities availability in society is not just a Zimbabwean issue, but a global matter generally imposing extreme implications and constraints on economic policy making and implementation in various countries of the world.
21. Allow me, therefore, Ladies and Gentlemen to pay special reference to Secretary General of the United Nations (UN) Mr. Ban Ki-moon’s statement to a Trade and Development Conference in Accra, Ghana, on the 20th of April 2008.
22. The UN Secretary General warned that the unavailability and unaffordability of food due to the global food crisis and the attendant surge in food prices was one of the greatest dangers that threatened socio-economic development.
23. To this effect, the UN Chief said: quote: “If not handled properly, this crisis could result in a cascade of others … and become a multidimensional problem affecting economic growth, social progress and even political security around the world”.
24. It is in view of the above that as Monetary Authorities, we have elected to be pragmatic as opposed to passively wait for disaster to strike in this nation.
25. In that spirit, we have, as is now characteristic of your Central Bank, dipped deep into our bag of innovations and came up with what we are convinced is a short to medium term response to the challenges confronting our nation in general and the vulnerable groups in particular.
OUR SHORT TO MEDIUM TERM RESPONSE TO THE CHALLENGES: THE BASIC COMMODITIES SUPPLY SIDE INTERVENTION (BACOSSI) FACILITY
26. The Basic Commodities Supply Side Interventions (BACOSSI) Facility is a multidimensional programme which seeks to ensure the availability and affordability of basic commodities to the vulnerable members of the Zimbabwean society.
27. The sole objective of this initiative, itself an intermediary intervention is, to alleviate the current shortages of basic commodities in the formal markets, especially in the rural areas.
28. As your Central Bank, we are therefore working hand and glove with the Ministry of
Industry and International Trade as well as other arms of Government to ensure that this initiative is effective as a market instrument to deal with the current market failure generated by rampant market indiscipline by way of profiteering and side marketing at the expense of the real consumer.
29. The facility is being implemented at broadly two levels namely supply side interventions at industry level as well as the distribution part at house hold level.
30. Having shared enough on basic commodities availability, allow me, fellow Zimbabweans to divert and touch briefly on another critical issue affecting the economy.
CURRENCY REFORMS
31. Ladies and Gentlemen, let me also take this opportunity to reassure the nation that this coming week, the Reserve Bank will be implementing far – reaching reforms to the Payment System whichreforms would address the current genuine constraints being faced by the public.
32. As your Central Bank, we are duty-bound to listen to all stakeholders submissions on how best to resolve known economic challenges and through this consultative process we then design appropriate responses.
33. I am, therefore, very confident that this coming week will bring about the much needed relief in our National Payment System.
CONCLUSION
34. In conclusion, allow me Ladies and Gentlemen to take this opportunity to, once again, congratulate the Patron of the Midlands Show Society, Governor Msipa, and the Executive Committee of the Midlands Show Society, the entire Farming and Business sectors in the Midlands province for contributing in your various but all important ways to make this amazing event a success.
35. In addition, Ladies and Gentlemen, I am heartened by the spirit of ownership and partnership revealed by some of the exhibitors to this year’s event whom I am told went out of their way to construct their own exhibition stands to make this show the accomplishment it is today.
36. In this regard, Ladies and Gentlemen, please help me recognize and salute the Grain Marketing Board (GMB), Bata Shoe Company, the National Social Security Authority (NSSA), the Zimbabwe Revenue Authority ZIMRA, Dairiboard Zimbabwe and Sino-Zimbabwe Cement for having contributed to the success of this year’s show in their own special way.
37. Lastly, allow me, ladies and Gentlemen to reiterate that our current interventions in the productive sectors of our economy are not an end in themselves but rather come as transitory measures meant ensure continued national survival while at the same time gravitating the economy towards a self reproducing mode which would allow it to sustainably recovery and prosper.
38. As Monetary Authorities, therefore, we continue to call upon our leadership in Politics, Business, Labour and Civil Society to subvert their narrow individual and sectoral purviews to the global picture that benefits the country and the economy through coming together under a form of progressive understanding or social pact inspired by the collective goal of growing our National wealth in harmony.
39. With these few remarks, Ladies and Gentlemen,
40. I thank you.
Dr G Gono
Governor, Reserve Bank of Zimbabwe
Gweru, 26 July 2008
Labels: BACOSSI GOODS, GIDEON GONO, SPEECHES, TRADE FAIRS, ZIMBABWE
posted by MrK @ 2:35 AM
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