Zimbabwe Institute of Strategic Thinking (ZIST, founded by Policy researcher and academic Doctor Tinashe Eric Muzamhindo will tomorrow host Reserve Bank of Zimbabwe (RBZ) Governor Doctor John Panonetsa Mangudya as the keynote speaker on the theme, “Building policy bridges to store up business confidence in Zimbabwe” at Crowne Plaza Hotel 7-11am.The breakfast dialogue on the Economy comes soon after the host, recently launched the Zimbabwe Institute of Strategic Thinking (ZIST) magazine, a think-tank manuscript aimed at providing lasting solutions to Zimbabwe’s once comatose economy and political conundrum which was officiated by renowned businessman, banker and philanthropist, Doctor Nigel Chanakira, the executive chairman of Success Motivation Institute (Zimbabwe) involved in leadership development.
Tomorrow’s event Partners include the Newshawks, Zimbabwe Independent with supporting speakers in Alpha Media Holdings Group CEO Kennias Mafukidze, Outgoing Standard Association of Zimbabwe (SAZ) Director General and former African Union Standards Associations boss Dr Eve Gadzikwa, Zimbabwe National Chamber of Commerce ( ZNCC) Vice President, CFO Cavendish Lloyd Zimbabwe Rebecca Manford and Partner with Titan Law Nqobile Munzara.
Mangudya’s keynote address tomorrow is expected to steer business confidence in the implementation of his Monetary Policy Statement.He is also expected to explain the Monetary Policy from which the buck stops with him.
ZNCC is expected to give its sober mind in as far as Fiscal Policy issues are concerned with Media being able to be the voice of reason objectively tackling the issues ZIST will table. Just like at ZIST’s recent magazine launch where Dr. Muzamhindo who doubles as, the executive director of ZIST made it clear that Zimbabwe needed home grown remedies that are solutions oriented and based on focused thinking, much more will be expected from the academics present.
Muzamhindo was quoted as saying“We have chrome, we have gold reserves, we have nickel, we have alluvial diamonds in Marange and we are the second largest producer of platinum in the world, yet we are the poorest nation,” similar sentiments that Nigel Chanakira echoed.
Chanakira said, “When I look around and I see young people, I’m really encouraged to keep on doing what I’m doing and to be associated with young people like Tinashe (Dr. Muzamhindo).Are you with me because you are trying to make things happen for our country.”
Chanakira emphasized on the need for strategic thinking with a mindset geared towards transformation in order to turn around the economy.
” When you read of historical records around our country, you know records in tobacco production, maize production, all those records are there….”
Chanakira added, “I have a daughter in New York now, I have a son in London, but somewhere somehow something’s still crying out to be in Zimbabwe and they are out there. They are enjoying themselves in a sense but there is a great part of them that longs for home, Zimbabwe.”
As he introduced Chanakira to the podium on the recent ZIST Magazine Launch, Muzamhindo added,
“Ensure that there is an inclusive approach in business, development, politics, economy.I think most of you agree what’s going on, and I think there is need for objective strategic thinking along the current trajectory. There is also need for interaction, more dialogue and also more consultation. Stakeholder participation is also very critical.”
The ZIST founder believes all solutions must be tabled through what he calls a strategic stakeholders engagement where strategic people come together with all solutions to provide solutions-focused thinking.
Muzamhindo’s ZIST is expected to bring the two major players in Zimbabwe’s political landscape, Emmerson Mnangagwa and Advocate Nelson Chamisa, the church, civic society, Academics, researchers, political players and many others to the negotiating table to drive a home grown solution to the current status quo.
Many people across the political divide, business community, church , government, parastatal, diplomatic community have endorsed ZIST.
Speaking to the media soon after the launch, Movement For Democratic Change MDC-T Secretary General Doctor Tapiwa Mashakada, welcomed the ZIST Magazine launch, saying it was a long overdue initiative which Zimbabweans needed to resolve political and economic stalemates to take this country forward.
The Executive Chairman of Success Motivation Institute (Zimbabwe), Dr. Nigel Chanakira applauded Muzamhindo for coming up with such an “excellent” initiative and urged the youthful academic to be resolute to achieve their dreams to “liberate” the country economically and politically through solutions-oriented convergences.
“More than it is Political risk More than it is legal risk more than it is economic risk more than it is socio-economic issues risk , The biggest risks that we carry are largely political but let me assure you as Tiri said earlier on it is the young people that are going to..”
“As much as we may say it’s the politics it’s not.
“The economics will always run the politics, Business will always drive the politics, So yes the politics is there and I encourage, as the author of that book encourages young people to engage in politics, let’s engage in politics.
” And guess why, because everything right falls on leadership so within the realm of political leadership, we need good leaders, within the realm of legal aspects, we need good leaders within legal aspects, and the whole legislature, we need good ones, we need good MP’s to enact laws that are worthwhile for our development.”
In light of ZIST’s recent magazine launch, tomorrow’s breakfast dialogue on the Economy with the banker of all banks, banker of the Government, Reserve Bank Of Zimbabwe Governor Dr John Mangudya should be an eye opener for home grown solutions the Apex Bank boss has been leading on the front with which has seen the adoption of the Zimbabwe Dollar and refusal to de-dollarise the Economy.
The Governor himself is on record of stating the importance of confidence in the Zimbabwean Economy.From prior exclusives, Governor Mangudya has said countless times it is lack of confidence in ourselves and own Economy that is the biggest Economy, that sees institutions trading on the black market, and breaking the country’s laws. It is this lack of confidence that saw the Governor instruct his Financial Intelligence Unit which came up with recommendations as the following:
On the basis of the FIU findings, the Bank has put in place the following corrective measures, with effect from 1 July 2022:
(ii) No bank shall extend a loan to an entity or individual at an interest rate below the prevailing Bank policy rate.
(ii) Banks shall implement appropriate due diligence measures to ensure that borrowing by holding entities on behalf of their subsidiaries are properly justified and that the loans are used strictly for the intended purpose. Banks shall implement similar measures in the case where an entity borrows on behalf of an associated entity.
(iii) Banks shall also –
(a) ensure effective credit risk management, including loan monitoring and enforcement of loan covenants, client visits and other measures to ensure that borrowings are used for the intended purposes; and
(b) ensure compliance with the prescribed prudential lending limits provided under the Banking Regulations SI 205 of 2000, and more particularly that:
the aggregate of loans and advances outstanding at any time or any single obligor shall not exceed 25% of a banking institution’s capital base; and
the aggregate of loans and advances outstanding at any time to any corporate group shall not exceed 75% of a banking institution’s capital base or 25% of any single member of such corporate group.
(iv)The FIU shall monitor transactions on an ongoing basis to ensure that loan proceeds, as well as entities’ own revenues, are not diverted to the illegal foreign exchange parallel market and to take punitive action where abuses are identified.
(v) Whilst the suspension of lending to the investigated entities has been lifted with effect from 17 June 2022, any entity found to have actively engaged in exchange rate manipulation in order to derive illicit gains from loans shall also be referred for prosecution.
(vi)Boards of directors should enhance oversight on the management, reporting and performance of large exposures and group exposures.
(vii) The Bank will continue to monitor the effectiveness of banking institutions’ credit management practices and compliance with applicable laws and regulations.
With above being measures less than a week old, tomorrow’s ZIST breakfast dialogue will be interesting to follow as both business, the public and the central bank are baying for blood.