INDUSTRY has urged government to stop awarding of tenders involving huge amounts of money to private players, arguing this was the main driver of inflation and exchange rate disparities on the market.
Giving oral evidence to Parliament’s committee on budget, finance, and economic development, on the prevailing situation at the auction system, Confederation of Zimbabwe Industries (CZI) president Kurai Matsheza accused private players of hoarding the United States dollar, and thereby fueling inflation.
The CZI president warned government not to punish ordinary citizens for crimes being perpetuated by known culprits whom President Emmerson Mnangagwa described as ‘economic hit-men’.
“Investigations happening now are obviously going to pick perpetrators and deal with them, but why were they not picked before? Those found on the wrong side of the law must face the music,” said Matsheza.
“While we concur on the need to carry out exhaustive investigations into this important matter, there is no need to place a blanket ban which affects everyone including the innocent businesses as it is the case currently,” he said.
Matsheza however, said he was in agreement with government on its decision to maintain the Zimbabwean dollar despite its massive devaluation on a daily basis.
He argued the local currency will bolster productivity and exports.