ZiG introduction marked slide towards shrinkage, economic collapse- ex Finance Minister

Former Minister of Finance and Investment Promotion Tendai Biti says the introduction of the local currency Zimbabwe Gold (ZiG) marked a slide towards economic collapse and shrinkage.

He says the ZiG induced depression and has seen companies close or exit and a massive devaluation of social services.

Posting on his X handle, Biti who served as Finance Minister during the Government of National Unity said the formal retail sector is reeling under the weight of exchange rate volatility, excess taxes, over regulation as well as competition from the informal sector.

“The introduction of the ZIG in April 2024 marked a significant slide towards collapse deceleration & shrinkage.

“The ZiG induced depression has seen companies close or exit & a massive devaluation of social services.

“The formal retail sector is reeling under the weight of exchange rate volatility, excess taxes, over regulation & competition from the informal sector. Real sectors of the economy have been affected by a crippling power crises with ZESA unable to provide sufficient output to protect production & jobs,” he said.

Biti pointed out that besides power outages, corruption is a major head wind that has devalued the Zimbabwe’s economy.

“Public procurement, fuel, commodities & Treasury disbursements have become major centers of looting.

“Beyond corruption sits microeconomic disequilibrium created by total mismanagent of exchange rate.

“De-dollarization is a failed ritual with 80 % of all transactions done in US$.

“The ZIG $ is a myth, a lie, imposed to guarantee extraction through exchange manipulation & fraud,” he said.

Zwnews