Back to Index

This article participates on the following special index pages:

Document on price reduction crack team programme
Gideon Gono, Reserve Bank of Zimbabwe (RBZ)
July 03, 2007

http://www.mg.co.za/articlepage.aspx?area=/insight/insight__africa&articleid=313803

Download this document
- Part One - Pages 1 - 12 Acrobat PDF version (361KB)
http://www.mg.co.za/ContentImages/313804/gono_advice4.pdf (direct link to 15 page PDF)

- Part Two - Pages 13 - 28 Acrobat PDF version (397KB)
http://www.mg.co.za/ContentImages/313804/gono_advice1.pdf (direct link to 16 page PDF)

- Part Three - Pages 29 - 44 Acrobat PDF version (383KB)
http://www.mg.co.za/ContentImages/313804/gono_advice2.pdf (direct link to 16 page PDF)

- Part Three - Pages 45- 59 Acrobat PDF version (621KB)
http://www.mg.co.za/ContentImages/313804/gono_advice3.pdf (direct link to 25 page PDF)

If you do not have the free Acrobat reader on your computer, download it from the Adobe website by clicking here.

Dear Hon. Minister

Re: Prices Reduction Crack Team Programme

1. Hon. Minister, I write to make recommendations on the ongoing efforts meant to stabilize prices in the economy.

2. As your Central Bank, whilst we concur that a significant part of the high inflation the economy is experiencing is being fuelled by speculative price increases, we recommend that current efforts be bolstered by the adoption of a holistic package of measures that would uplift the general supply of goods and services in the economy.

3. Over the past 43 months since December 2003, the Central Bank has been making clarion calls on the need to take the following measures, among many others:

(a) That we uplift overall productivity on our farms through effective utilization of all arable land;

(b) That we privatize targeted entities to raise foreign exchange as well as allowing for new equity to be injected through private sector participation;

(c) That we vigorously jerk up operational efficiencies at all public utilities and local authorities to unlock the economy's supply side;

(d) That overall expenditure levels in line Ministries be streamlined to levels consistent with available revenue streams;

(e) That the Social Contract be implemented as the launch pad for macroeconomic stabilization;

(f) That foreign direct investment be promoted in areas such as mining and manufacturing through progressive legal reforms that give comfort to the investor community; and

(g) Elimination of corruption at all levels in the economy.

4. Hon. Minister, it is our strongest conviction that only through a holistic framework can we stabilize prices, without inducing shortages in the market.

5. For further information, I have attached to this letter the full catalogue of policy advice that we have made since December, 2003.

6. We remain committed to continue playing our part in stabilizing the economy.

Yours sincerely,

(signed)
Dr G. Gono
Governor

Cc: Dr M.J.M. Sibanda, Chief Secretary to the President and Cabinet
Hon. W. Shamu, Minister of State In Charge of Policy Implementation

Download full document 

Please credit www.kubatana.net if you make use of material from this website. This work is licensed under a Creative Commons License unless stated otherwise.

TOP