Emmerson Mnangagwa has stymied Zimbabwe’s economy, five years after he declared the country “Open for business.” Flanked by his finance minister and central bank governor, the president announced in a May 7 televised speech that banks had been banned from lending in a bid to stem the precipitous decline of the local currency. The order threatens to dissipate what little confidence there is in an economy that’s been in turmoil for more than two decades.
Late on Thursday the government exempted producers of commodities including sugar, tobacco and corn from the lending ban, adding to the uncertainty. Still, the government is adamant the step is necessary. “Tough policy measures anywhere in the world always attract criticism,” Ncube said in an interview on Thursday. The lending ban “is temporary in order to prick the bubble of speculative activities,” he said.