The effects of President Mnangagwa’s loan ban are going to be far-reaching and disastrous. Of course like in all times past the president and his advisors will wash their hands of whatever consequences come our way. A lot of companies have already suspended credit sales as we reported earlier. Now Tongaat Hulett, Zimbabwe’s largest sugar manufacturer has just announced that it will no longer be making advance payments to farmers.
12 May 2022
RE: SUSPENSION OF ADVANCE CANE PAYMENTS TO FARMERS FOR 2022/23 SEASON
It is with regret that the millers advise of the immediate suspension of advance payments until further notice. We normally fund the advances from loan proceeds that we access from banks. Following recent suspension of lending by banks we find ourselves unable to continue offering advances.
for and on behalf of HIppo valley Estates Limted and Triangle Limited
Cheif Operating Officer
The price of hubris
It is astounding that is “wise and omniscient” leaders failed to predict such a sad chain of events. This was all predictable. All they needed to do was make a proposal and they would have been informed by stakeholders about what exceptions they needed to make. Better yet they should simply have ordered banks to stop issuing dubious loans or gone after the people they are really after. Instead they had to issue a blanket ban and now farmers and every sector in the economy is in trouble.
This is the price of arrogance and hubris. For the past four years the Zimbabwean government has been crafting economic policies from a tower of paranoia. The economy is not faltering due to their own ineptitude and rash policies but rather as a result of the collective action of some unknown “economic hitmen.” As we said in an earlier article. They are right, the economy of Zimbabwe is being hurt by hitmen. Their name is the government of Zimbabwe.