Wednesday, June 12, 2019

The case of a failed govt and a Lamborghini

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A Lamborghini broke the internet in Zimbabwe . Rightly so too.
It is clear from the discourse that many people are not happy about this new acquisition by a member of a failed ZANU PF party.
The luxury vehicle came in on a day the government released data that imports had fallen and in particular car imports had fallen from $55 million per month to $38 million in last two months.
There is nothing criminal about buying a luxurious car in a sea of poverty as currently the case in Zimbabwe . The honourable MP has the right to enjoy his income .
However Mr Honourable MP's proximity to Mnangagwa presents a lot of questions. The citizens need an explanation on why they are being told by the same government to use bicycles.
Questions such as did the RBZ allocate forex to buy this car? What happened to the forex priority list? Is it only applicable to those not politically connected? Is Mr Honourable MP stashing forex at home? How has he earned it? So are Mnangagwa and his hangers on the black market forex kingpins as alleged?
Mnangagwa is surrounded by a small clique of wealthy but unproductive primitive accumulators as opposed to productive capitalists. These are only good at accumulating and consuming .
What is clear from the acquisition of this car is that a lot of Mnangagwa’s allies and the elite have a stash of US dollars lying around somewhere. It is unlikely that the RBZ approved forex to buy a car ( did they?)
Those who surround Mnangagwa have no faith in the ‘Zimbabwe is open for business’ mantra. The astronomical figures spent on racing cars that are meant to drive on potholed roads point towards failure by the elite to prioritise allocation of scarce resources.
Resources whether they are public or private are scarce. Why should Zimbabweans borrow expensive foreign capital to kickstart economic revival when the ruling elite have money in their suitcases?
Clearly Mr Honourable MP has no faith in the local system that it could grow his capital. Why must foreign investors be expected to invest in an economy where the current elite would rather invest in cars?
Why didn’t Mr Honourable MP invest in 11 centre pivots to improve productivity on the farm he got from government?
Has Mr Honourable MP made so much money that he doesn’t see any sense in growing the money he has now or he simply can’t see opportunities to grow his money locally?
Mr Honourable MP is a typical crony who has no capacity to create wealth beyond his current networks. They thrive in exploiting political networks to provide services and reap profits.
He will get more of these huge logistics tenders because of his proximity to power but none of the profits he makes will be useful to the country.
Government must impose a tax for idle capital and must punish misallocation of scarce resources. It is shocking that Mr Honourable MP may have brought in this vehicle duty free. This is a system that rewards and incentivises misallocation of resources.
Mnangagwa is likely to fail dismally in resuscitating the economy. It would seem Mnangagwa and those who surround him have no mindset required to rescue Zimbabwe.