TENDAI BITI Profile picture
Nov 24 8 tweets 4 min read
1)Zimbabwe is in the middle of a structural economic crises characterized by poverty ,disequilibrium, high inflation,an exchange rate crises& total collapse of public services.For the third time in 20 years Zim is in the middle of yet another self induced recession created by .. Image
2)…high borrowing costs ,relentless inflation & a squeeze on government payments to contractors. The seismic headwinds required boldness honesty &brinkmanship Sadly the #Budget2023 presented today was a banal self serving ritual in narcissism&power retention excesses , months Image
3) …before the 2023 election. An honest budget ought to have been presented in US$.After-all more than half of government taxes are now being collected in US$.This would then have allowed civil servants to be paid in US$ .This would also have required Gvt to simply dollarize Image
4)..As we have argued before,the exchange control mess,right at the center of Zim macroeconomic instability must be resolved by dollarization,floating of the Zim$,scrapping the FX auction&the gold coin.Sadly this did not happen.The mess of multiple exchange rates will.. Image
5)..therefore continue with consequent pricing distortions.The raising of VAT to 15% is an attack on working people&reflects the ideological vacuousness of regimeIt is elementary economics that in a recession taxes must be lowered to stimulate aggregate demand.The restoration Image
6) ..of duties on basic commodities particularly in a festive season is equally sadistic & bankrupt.The imposition of mining royalties to be paid partly in actual minerals is equally zany.Apart from gold how does one pay chrome ,coal or a PMG as a tax? Image
7)The projected growth rate of 3.8% in 2023 is ambitious & based on unsound assumptions. It ignores the shrinkage of the global economy , the effects of the Russia Ukraine war & more importantly the natural freeze of an election year.The underfunding of health budget (11%) & .. Image
8)..public education is an indictment.However the pumping of huge resources into command agriculture betrays that this an election year & that the 2023 Budget is a power retention agenda.Truth is Mthuli & #ZANU have failed & the 2023 Budget is Exhibit A of craft incompetence #NHM Image

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More from @BitiTendai

Aug 12
1)There are 4 issues central to agriculture finance which will be addressed First is ensuring that land is a bankable asset. We have made it clear that all farmers must be granted title which they can use as collateral. Without title land remains dead capital with use value only
2)With land that can be hypothecated farmers can be funded through the bank sector. Remember before 2000,74 % of banking lending was to agriculture.Second agriculture subsidies need to be revisited .Zim must abandon the current Command Agriculture model that creates dependency
3)..&arbitrage. As the Auditor General s Reports confirm since 2016 ,Command Agriculture has been used to systematically loot public coffers. Supply side subsides must be provided to vulnerable farmers to break hold of cartels now choking agriculture through contract farming
Read 9 tweets
Jul 28
1) The Minister of Finance has presented his 2022 mid term review & budget statement . It was painful to indulge in an hour of a pointless,tired monologue .An absolute damp squib.A huge opportunity was missed to address fundamental disequilibrium in the economy centered around …
2) 7 key issues that are 1) hyperinflation 2) exchange rate collapse 3) collapse in public sector wages 4) collapse of the social sector 5) low out put 6) deficit financing & the national debt 7) tax reform .Sadly the gvt missed a glorious opportunity of addressing key issues
3) Failing to address the key challenges of the day was a cowardly criminal omission that in any event has been the hallmark of Mthuli s tenure. To compound matters Mthuli then proceeded to make shocking announcements on a supplementary budget & some tax increases .
Read 9 tweets
Jul 27
1) Tomorrow the Minister of Finance presents a mid term review and a Supplementary Budget . The Review comes in the backdrop of an economy arrested by headwinds contradictions&policy distortions. It comes in environment dominated by hyperinflation, exchange rate collapse &poverty
2) The Review must address the issue of money creation so key to the crises of over accumulation that has taken Zim back to 2008. It must address issue of a falling Zim $ &a collapsed exchange rate It must address collapsed public sector wages that has crippled the public sector
3)We expect the Review to come up with extremely populist but costly fiscal measures as 2023 draws closure . We expect some nominal relief on tax brackets & rates of taxes in other sectors . But truth is the Review will not touch on key structural issues arresting this economy
Read 6 tweets
Jul 26
1)On @UN World Day Against Drowning it is clear that Mr Mnangwagwa & his Central Bank Governor Panonetsa John Mangudhla remain resolute in their quest to see Zim totally drown Today s launch of their gold coin is a case in point.
2)Like everything else they touch the gold coin will fail .Like everything they pursue coin will be an instrument of arbitrage &extraction .For starters it will not control or restrain inflation, exchange rate collapse or money supply.Broad money needs to be controlled at source
3)The source is of course the Central Bank itself whose appetite for quasi fiscal activities is unprecedented. It’s foreign auction system creates millions of US$ that are fueling the parallel market weekly. It’s Treasury Bills ,it’s retention of Export Surrender Requirements ..
Read 11 tweets
May 8
1)The regime has announced a potpourri of contradictory, self defeating , punitive & vindictive measures with the intended aim of stopping or reversing the dramatic& rambacious free fall of the Zimbabwean $ &the consequential inflationary spike experienced in the last two weeks
2)Truth is the measures are I’ll thought& reflective of a paranoid moribund incompetent regime that believes everything&everyone is an enemy&a saboteurA regime that blames everyone except itself for the humongous mess it has plunged Zim intoA regime that sees shadows everywhere
3) The dramatic fall of the exchange rate stems from the introduction of the Zim$ when the necessary preconditions were absent . It stems from a huge mismatch between supply & demand . It stems from the failure of the Dutch auction system. It stems from a huge budget deficit ..
Read 11 tweets
Mar 10, 2021
In the afternoon I pulled down a tweet made in connection with ProfMaduku’s interpretation of section 96(2) of the constitution.The context of that tweet is explained below. Clearly in my banter with Lovemore , whom I have known for over 20 years & worked with very closely ...
...in the law , in the struggle & in personal spaces I overlooked the huge extent of the fragile national question marginalization alienation and exclusion of certain communities in Zimbabwe.I have lived with this discrimination & exclusion throughout my life. I have recently ..
...seen this isolation & disillusionment on our recent visit to Chilonga. Chipinge is no different. Ironically like Chiredzi it was part of the Gaza State established by Soshangaan &his descendant Ngungunyana With the fall of the Gaza State colonial Rhodesia plundered Gazaland
Read 12 tweets

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