Formalise Informal Sector As Zim Has More Of Its Economy In Informal Sector – Mangudya

The Zimbabwean government has been encouraged to formalise the informal sector since most of the country’s business is done in this particular sector.Speaking to Technomag, Reserve Bank of Zimbabwe (RBZ) Governor, Dr John Panonetsa Mangudya said Monetary and fiscal policies work well in normalising the economy, hence the need to find solutions to formalise the informal sector because the country has more of its economy in the informal.

Dr.Mangudya revealed to this publication that “Government needs to think about how to formalise the informal sector because (the) Budget only focuses on the formal side.”

Governor Mangudya said “On the fiscal side, Government has managed to achieve fiscal sustainability. On the monetary side, the Bank has managed to stay the course of conservative monetary targeting framework.”

Mangudya also added that ”We need to promote loans in foreign currency so
as to tap more into Diaspora, that’s a good proposal which we can achieve with confidence and unity of purpose.”

The apex bank boss said

“We agree with the issue which says we need to provide loans in foreign currency to tap into the Diaspora and we are doing that, and we are going to expand,” he said.

Such expansion into the informal market if extended to those in the diaspora also means every dollar by a Zimbabwean in the country or outside we be well accounted for.