HARARE – A South Africa-registered firm has tabled before the Reserve Bank of Zimbabwe governor John Mangundya a bailout package to import fuel and basic commodities into Zimbabwe as the economy sinks into recession.
African Medallion Group (AMG) said — in a letter to Mangudya — the move is aimed at helping Zimbabwe out of the current economic crisis, which is evidenced by acute foreign currency, fuel, basic commodities shortages, high unemployment rate and recent price increases.
“In a bid to be a responsible corporate citizen, we find it incumbent upon ourselves to contribute positively to the on-going economic crisis currently being experienced by the people of Zimbabwe. African Medallion Group is in a position to assist with the procurement and delivery of fuel, cement, cooking oil, pharmaceuticals and other commodities deemed necessary by the government and people of Zimbabwe through a bonded infrastructure,” Estee Maman, the company’s chairperson said in an October 29 letter to Mangudya.
The AMG boss noted that Zimbabwe requires a strong private sector to help the country achieve sustainable economic growth under the current multi-currency arrangement. The southern African country is battling economic crisis in a decade that has in the past few weeks spiralled out of control resulting in supplies of fuel, food and pharmaceuticals drying up.
Many fear the current crisis, induced by foreign currency shortages and a ballooning debt, could spiral into the kind of collapse seen a decade ago when Zimbabwe’s hyperinflation reached 500 billion percent, according to the International Monetary Fund.
However, AMG feels that it has the necessary muscle to halt the country from descending into full blown economic crisis.
The latest development is also in line with President Emmerson Mnangagwa’s plans to create a stable economic environment. The Zanu PF leader recently warned economic “saboteurs” whom he said were manipulating the country’s economic crisis to enrich themselves by inflating basic commodity prices. — The Financial Gazette