Citizens Coalition for Change (CCC) Harare East legislator and former Minister of Finance Tendai Biti has predicted a rough and tough year for working families in Zimbabwe.
In an interview with a local publication, Biti said inflation will remain in hyperinflation mode driven by mismanagement of the exchange rate.
“2023 will be a rough and tough year for working families in Zimbabwe. Inflation will remain in hyperinflation mode driven by the total mismanagement of the exchange rate, unrestrained government spending, the printing of money by the Reserve Bank of Zimbabwe and corruption.
“End of the year, the Zimbabwean dollar was trading at ZW$1200 to US$1. The rate will continue to slide driven by huge import demands, money printing and a lack of confidence in the ZW$. For all intents and purposes de -dollarisation has failed and Zimbabwe is largely a US$ cash economy,” Biti said
He added “As we have argued in Parliament, output will shrink due to excessive lending rates of 200%, the crippling power supply, overregulation and the unstable exchange rate. Zimbabwe’s growth will therefore be less than 1%. The failure to address the sovereign debt crises is an absolute shame. The debt crisis is placing a development premium on Zimbabwe as same is unable to access huge amounts of capital seating with the IFIs. Genuine structural reforms are required which are way beyond ZANU PF.”