'Economy of Zimbabwe will not collapse'
Monday, 23 July 2007
HARARE, July 22 (Xinhua): Reserve Bank of Zimbabwe Governor Gideon Gono has said the country's economy will not collapse, in the face of growing economic difficulties, because of heavy investment made in the mainstay agricultural sector, New Ziana reported yesterday.
Inspecting farm equipment bought by the central bank under its agricultural mechanisation programme Friday, the governor said huge investments were being made in the agricultural sector to enable it to anchor the economy much more strongly.
"Our agriculture is not going to be the same again with this kind of investment. Zimbabwe will never die. We may go through difficulties but we will not die," he said.
Gono said the farm mechanisation programme was taking land reforms, undertaken by the government in the last seven years, "to another level."
Under the mechanisation programme, the central bank is souring and distributing farm equipment to farmers resettled by the government.
The first distribution of the equipment, which included combine harvesters, tractors, harrows and planters, was done last month, and the second is expected shortly.
He said the central bank had a "strong conviction" that the mechanisation programme would help pull the economy out of its present difficulties, which included high inflation.
Gono said it was justifiable for the central bank to print money, which economists blame for stoking up inflation, to fund the mechanisation programme because it would bring long-term economic benefits.
"If I print money to buy these (implements), we will have temporary difficulties on the inflation front but for the next 20 or so years, the economy will benefit," he said.
Gono said the farm equipment, which the central bank is sourcing jointly with the ministry of agricultural engineering and mechanisation, was going to be sold to beneficiaries at market prices.
Inspecting farm equipment bought by the central bank under its agricultural mechanisation programme Friday, the governor said huge investments were being made in the agricultural sector to enable it to anchor the economy much more strongly.
"Our agriculture is not going to be the same again with this kind of investment. Zimbabwe will never die. We may go through difficulties but we will not die," he said.
Gono said the farm mechanisation programme was taking land reforms, undertaken by the government in the last seven years, "to another level."
Under the mechanisation programme, the central bank is souring and distributing farm equipment to farmers resettled by the government.
The first distribution of the equipment, which included combine harvesters, tractors, harrows and planters, was done last month, and the second is expected shortly.
He said the central bank had a "strong conviction" that the mechanisation programme would help pull the economy out of its present difficulties, which included high inflation.
Gono said it was justifiable for the central bank to print money, which economists blame for stoking up inflation, to fund the mechanisation programme because it would bring long-term economic benefits.
"If I print money to buy these (implements), we will have temporary difficulties on the inflation front but for the next 20 or so years, the economy will benefit," he said.
Gono said the farm equipment, which the central bank is sourcing jointly with the ministry of agricultural engineering and mechanisation, was going to be sold to beneficiaries at market prices.