Friday, February 01, 2013

(NEWZIMBABWE) If Zim was a company it’d shut down: Biti

COMMENT - Colonial revanchism drips through Tony Hawkins and Eric Bloch's octogenarian veins, like tobacco juice from the corner of a clansman's mouth. These are the international media's go-to guys for interpretation of Zimbabwe's economy. No wonder they love neoliberal economics, which after all is designed to benefit De Beers and Stanchart. Tony Hawkins looks like the devil in Poltergeist 2.

If Zim was a company it’d shut down: Biti
Economy woes ... Academics Antony Hawkins and Mandivamba Rukuni at the CZI meeting
31/01/2013 00:00:00
by Paradzai Brian Paradza

FINANCE Minister Tendai Biti said Thursday that the country’s economy was so dysfunctional Zimbabwe would have to shut down if it was a private company and again rounded on foreign banks for refusing to back the government.

Biti told industry executives at a Confederation of Zimbabwe Industries (CZI) meeting in Harare Thursday that it was unacceptable that Zimbabwe continued to be trapped in a cycle of “permanent depression or permanent crisis punctuated by periods of growth”.

“It’s just not sustainable. If Zimbabwe was a private company, it would have been closed. Definitely it wouldn’t function. We are presiding over a very unsustainable economic matrix,” said Biti.

Zimbabwe’s economy has been battling to come out of a decade-long economic crisis since 2009 when the coalition government came into office but the recovery continues to be hampered back by various issues, among them, the reticence by global financiers to extend credit lines.

Biti this week raised international eyebrows when he revealed that the government had no money with just US$217 left in its bank accounts after paying state workers’ wages.

On Thursday the Treasury chief complained that there was no “collective approach” in addressing the many problems facing the economy, including a huge debt overhang as well as a highly consumptive budget structure.

Biti was particularly scathing when he criticised foreign-owned banks for refusing to back treasury bills issued by the government late last year.

He said: “Zambia floated a US$300 million paper which was oversubscribed to the tune of US$7billion with banks rushing to make bids but you come to Zimbabwe - the Finance Minister raises a US$50 million paper, the uptake is just US$7,7 million and where are your banks?
“The Barclay banks of this country aziko, the Standard Chartered banks aziko, the Stanbics aziko and you have the MBCA just makes a show of supporting it but offer a pathetic amount.”

Central bank chief, Gideon Gono however said despite the snub, the government would this year issue more of the treasury bills which were aimed at addressing the country’s liquidity problems.

“Despite the vigorous lobbying by banks, participation in all the five auctions was very low. This notwithstanding, Government will undertake additional Treasury Bill auctions in 2013 on dates to be announced soon,” he said.

COMMENTS

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Mai Jukwa

A word of caution to Biti. Tone down the negative rhetoric. Telling the world how bad the economy is will hardly aid in improving it. If anything you shake the little investor confidence that exists. "If the Finance Minister says the country is horrible we best take his word for it."

Words are not merely a hose pipe by which we pour out every thought that enters our mind. One must ask themselves what they want to achieve and then speak words that bring that thing to completion. Kwete kungoropora twenhando.

Tweeta @AmaiJukwa
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denny

But what's wrong with telling the truth.Zimbabweans around the world boast about their education wani.but forgetting that, the education they talk of is just nothing because the country with its education and vast natural resources they are poor and drink sewage water.Then you hear one lunatic dictator shouting keep your Britain and I will keep my Zimbabwe,yet that Zimbabwe is depended on donor funds and without donor funds Zimbabwe will not be existing up to now.Even the next elections that we are having we have to ask for money from the whiteman.ROBERT MUGABE IS A DISGRACE TO AFRICA
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Cde Manesi

Whats wrong is to remain captain of a ship you deem to be sinking.Why sink with it?Why don't they(British) keep their companies and donor funds out of Zimbabwe.
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Gomoguru

There is no such thing as donor money. It is buying trade and influence. At no point in history has Zimbabwe had the capacity to finance all its public services. You only have just become aware of it I suppose.
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Mchadura

One word ... SANCTIONS!
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denny

Word sanctions is for cowards.A coward blames everything on others like what Mugabe does.If he can have a self critique Zimbabwe would be a better place but the blame for him is just others and him perfect.
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bassman01

2 words-Robert Mugabe,unless of course ,we have had sanctions since 1980
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AFROboy

Every political or economic problems we have in Zimbabwe was caused by Mugabe and his corrupt party..mai jukwa on tweeter "scary"
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Gomoguru

Mugabe caused your mental problems as well......you slimy toad
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Tony Tagart

Vote Strive Masiyiwa as CEO of Zimbabwe.......we cannot continue to e hunting for diesel from under rocks..Mugabe is outdated.........
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malaika263

Biti is proof that the 'truth' will not always set you free!!!!
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malcomX

The Zanupf Ministers were used or are still used of telling the president lies all the time. They tell the president that everything is fine including the state of his party. Now Biti is say it like it is.
Zanupf have been sending the so called war vet to demonstrate at his office demanding money, civil servants and even the farmers(Zanupf farmers) accusing Biti of not doing enough to support them. All these demonstrations and tantrums were being paraded kumedia just to embarrass him. Now that Biti is telling the nation the state of the accounts that is the backbone of the nation, there is outcry from Zanupf.
What really do you want you Zanupf? I want to believe that you are no longer human beings.
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Whyisvm

Biti is right ,close down this incompetent & broke country , what is there to hide ?? For your own info, just in case you didn't know ,this issue is trending right now you have no idea what is being said about former Rhodesia .
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Elma Sabudo

The economy is bad all over the world especially in America the biggest economy stalwart with more bad news of slump today .Do you actually think investors will just pump money without comprehension of country finances ?.Africa has abudant natural resources and if it was like Japan without mismanaged and corruption .No lender will even think about lending .

Jonathan Moyo Zanu is responsible for this debacle ,war vets funds ,DRC wars ,Reserve bank looting during farm invasions.

PANO ZANU PROPAGANDA HAINA MUSOWO .KECHE 1.
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AMGML63

How do you always manage to move from bottom all the way up plus lots of possitive ratings?

Is it vote rigging? Hehe
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BigStage

This is the first thing that mai jukwa ever said without any vernon,kusvotesa and slare of hate,comments made with maturity make sense and are readable.
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inini1545

Something positive from a radical school of thought.
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Chimoto

Mai jukwa what Biti is saying is that the government does not have money and the money meant for the goverment projects and for the people is in the hands of a few people. They have stolen the money and the resources making money for themselves. That is why we need a new government with a new leader to unravel these deals. Like it or not Mugabe has carried corrupt individuals who have drained the country. Lets put in a new leader be it from Zapu, Mavambo, Mdc T, Mdc N, Mdc M, Indpendent, Ndu, Ndonga or whoever, but not ZaNU pf. This will cut the corruption lines and cover.

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Mahenye

Tibvirei apo, your party has brought our economy to its knees and you don't stop there,you kill when we simply disagree with you, nyika ndeyevanhu,pandonga po!
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Mukundi

The only sensible thing mai jukwa has said in over 13 months
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Muktar Sayad

What naivete Mr Biti. On one hand you claim that if Zimbabwe was a private company you wold shut it down. No sooner after you say this you go on to say with cheek in your mouth "where are the foreign banks". Be serious Biti, do you really expect these banks to lend money that really belongs to their depositors to a country so badly mismanaged. A country that cannot pay its billions of outstanding loans.
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Munhumutema07

Nyika yaita mamvemve but despite all the decay and everything that comes with it, there are men who are still fighting to rule or ruin it. Some even kill just to stay in power in this dead Zimbabwe.
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GreenBomber

Biti as the man in charge of the economy needs to concentrate on doing his job which is fixing this dead economy or just throw in the the towel & go back to being a lawyer where he really belongs. After 4 full yrs in charge of the economy u would expect one to stop pretending he never contributed to this mess with the govt money he spent on his desk economist girlfriend & the car & loans he gave to MPs & ministers with no payment agreements.

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peaches07

i agree with you...........when are they going to stop blaming Zanu pf...............He should do the honourable thing and resign
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denny

If resigning was that easy,Mugabe could have resigned 20 years ago!!!
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Zuda Madhara

Zimbabweans are foolish sometimes. Papers are awash here with Barclays Bank and its shoddy dealings including lending rates manipulation, tax avoidance schemes, dodgy bonuses that fat cats awarded themselves. The bank has been named Britain's worst bank. But in Zimbabwe people are so foolish they are actually defending this mediocricy. No wonder why some whites refer to Africans as monkeys - literally speaking some of us behave like monkeys - yelling and ululating for a wind-blown tree that is about to fall down and take the life out of them. Barclays Bank is not bringing any value to Zimbabwe and the bank knows it. Biti, like the proverbial monkey, used to defend these banks. It is good that he has been made to eat humble pies - they have shown him their true colours.
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Elma Sabudo

Including you ,a fool as well who is working hard to defend an 89 old washed up dictator who has ruined the country for 3 decades .Air Zimbabwe ,1 $billion DRC credit card war ,$1billion looted from the reserve bank by Gono ,war vets funds .Decimated agri sector .

So this year Tendai Biti ,Eddie Cross ,David Coltart ,Tsvangirayi ( President elect ) will win against Zanu bonobos .

Bwaaaaaaa !!!!!Rovera Kadhara Bob Pasi .Wa!!!!!!!!!!!
Chinja CHINJA CHINJA .
Bwaaaaaaaaaaaaaaaaa.

Nyatsosvotwa usvodze chihururu Mu CIO .We hate Zanu pf .

PASI NA MUGABE
PASI NA GRACE ,NEBHURUGWA RAKE ZVESE.
PASI NE ZANU
PASI NA SAVIOR KASARE
PASI NE ZANU
PASI NA NGOKO
PASI NA JUKWA
PASI NEWE
BWA!!!!!!!!!!!!! CHINJA CHINJA CHINJA
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rukudzo

You seem to be losing your mind Sister.Calm down.
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Not-superstitious-at-all

rukudzo, you lost yours when you joined the Zanu Pf Marxist cult.
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rukudzo

I am very proud to be associated with our liberators.
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bassman01

Liberators are heroes-squanderers are shamefull.What think you?
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truth0001

he has made MDC's intentions MOST CLEAR!!!! if a company is broke you sell it..to bidders!!!! and this is EXACTLY WHAT MDC IS ABOUT..ITS about SELLING zimbabwe to western bidders..and for that reason he/biti is opposed to community grants from mines because such grants make it hard to sell zimbabwe to the west
in USA no politician would last half a day for saying such negative remarks against USA, they dont have time for it, they make remarks focused on a strong belief in america and how they will fight better to win BUT BUT BUT BUT not our BITI, he gets a high by rediculing his own country and making investors worry about doing business in zimbabwe. Is this their new way of MAINTaniING SANCTIONS.. or is MDC preparing for excuses (as they may dellusional think they will win elections) and be as negative as they can so when they make gvt they wont have to do anything....apart from saying oh zanu pf's mess will take years to fix...and are we to vote in people like that, who work hard at excusing thier future lack of perfamance?? how stupid does MDC think zimbabweans are??
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Pombi22

Zanu has already done that! What do you think the chinese are doing? Eating sadza?
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Iyanai

The worlds financial system is based on Credit and Credit is based on Trust and basically we are not trusted.

I have mentioned this before and ill mention it again, Government does not and cannot run the economy, Business people (particularly bankers) run the country. Zimbabweans focus way too much energy on Mugabe this Tsvangirai that, as if they can do anything about our situation. In most cases politicians are puppets. Federal Reserve bank of America is a private company and that is who runs USA not Obama, Bank of England is private too and that who run Britain not Cameron. Take away the credit that US receive from the Fed, the US would turn into third world countries in no time.

What Zimbabwe and most African countries lack is real powerful indigenous business players so if and when foreigners come in we always get the short end of the stick.

MuVet akangarwa, he came with Academic education but made sure we remain financially illiterate. WE COULD BE THE MOST LITERATE COUNTRY IN AFRICA and have Abundant natural resources but without CREDIT and FINANCIAL EDUCATION we are NOT going NOWHERE.
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Manuel Antonio Noriega Moreno

The words of a man who has no clue of his postion as Finance Minister and has run out of ideas.
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AMGML63

Ahh, there he goes again, if ANY country was a business. Half the worlds countries would go belly up. But countries are NOT companies!

Did you know consumer confidence is actually very important for growth?

Consumers halt spending while investors stop investing when they hear the finance minister say such things.

Oh and Elma, this is not a Zanu Mdc thing, its about whats right and whats wrong. Im sure you are waiting bug eyed infront of your computer itching to reply...

If Zimbabwe was a company, we would fire you! Call it shareholder activism!
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Elma Sabudo

You should learn to analyse raw materials holistically .Here is the paradigm in economics which applies to both companies and Goverments.

Enterprise value = Equity + Debt

When a company is operating with negative equity ( what Tendai has just said it is broke) and most goverments are in this situation.Compare credit percentages to GDP.

Let's say Zimbabwe credit is 86% of GDP ,this situation is very precaurious since we have bloated public sector and cabinet revenues will be diverted to compensation and chasm for projects in local goverments such as water ,housing is funded by bonds ( IOUs) .That is if Zimbabawe has a good credit rating which I highly doubt considering budget overruns and IMF defaults under Zanu .I have not factored interest on $$10billion debt .

This is the situation America is facing now worse the Republicans are for lower taxes ( fiscal cliff debate ) .By the way shareholders( equity owners ) and debt owners encourages risk for huge ROE and hate frugal economists .

Have the decency and keep quite BORDER GEZI MBA.Zimbabwe has high literacy levels !!!,yeah right .
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peaches07

Mr Biti, stop the negative rhetoric. JUST RESIGN.
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gimmo

I am not economist or an expect, but please, release the money from the diamonds. I am sure that is enough to sustain Zimbabwe. I understand we have lot of diamonds in Zimbabwe,and diamonds are a fortune. So, why are we suffering? Please, please, release the money and use it for the nation not for individuals.
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sublatern

shut the mofo down Tendai "217" Biti lol

Tweeta @aziko
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Elma Sabudo

There is more than 1trillion of outstanding credit cards ,loans and mortgages plus store cards and Goverment debt ,even if you are credit free you cannot escape your own share from the Goverment .

In reality you don't even own clothes you are wearing now .

Fascinating innit ?
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peaches07

Well then Mr Biti,the honourable thing to do is to resign
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ma1

Peaches,just from your use of certain words like "honourable thing"..."should resign",I can't help but assume you live within countries that have mature democracies like the UK. Unfortunately,the same doesn't exist in our country's politics. Our so-called leaders do not expect, and are never held to such high standards of accountability by the electorate. Kwavari,it's just a gravy train which they will ride till the wheels eventually fall off. The aptly named "Hon" Minister Biti is no different.
Although he has no clue of what he is doing anymore (if he ever),he's hell bend on making his mark and remain relevent at whtever expense, however damaging it is.
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peaches07

yeah, its a sad state of affairs really. if someone says that 'if zim was a company it would shut down' Its as good as a confession that azvitadza...sad sad sad


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