Mugabe rings changes at Central Bank

Mugabe rings changes at Central Bank

TROUBLE-SHOOTER: Gono

By Mduduzi Mathuthu
05/11/03
ZIMBABWEAN leader Robert Mugabe has appointed a leading Zimbabwean banker as governor of the Reserve Bank of Zimbabwe, signalling the start of a major shake-up which will spread to cover the Cabinet.

Gideon Gono, the chief executive of the Jewel Bank is Mugabe’s answer to the crippling cash shortages and will be expected to crack the whip on black market traders and some banks accused of driving the parallel market.

Gono, a key donor for Mugabe’s ruling Zanu PF party assumes office early December for five years. He takes over from Leonard Tsumba, recently accused of failing to arrest the cash shortages by Mugabe’s officials.

Mugabe announced last week that he would overhaul both his cabinet and the central bank in a bid to kickstart the faltering economy.

He blames the Reserve Bank for failing to stem the black market in foreign currency.

Zimbabwe has critical foreign currency shortages affecting a wide variety of imports including fuel. Foreign currency is readily available on the black market though, where it trades at more than seven times the official rate of 1 US dollar: 824 Zimbabwe dollars.

The overhaul of the central bank will be designed "to make more of a developmental institution that protects the national interest", the official Herald newspaper quoted ruling Zanu PF officials who attended a central committee meeting as saying.

Mugabe's cabinet, appointed soon after his re-election in March last year, is also to be overhauled.

Cabinet reshuffles are rare in Zimbabwe. There has however been widespread speculation that Mugabe might get rid of ministers accused of taking more than one farm under a controversial land reform programme, though there has been no confirmation of that from the government.

A new vice president also has to be appointed following the death in September of Simon Muzenda, one of two ruling party officials who hold the post.
Experts from the Malaysian central bank, one of the most efficient central banks in the world, are expected to come in and assist with the revamping of the RBZ, the Herald said.

Gono, 44, worked for several companies, most of them linked to the government before becoming the managing director and chief executive of Zimbabwe’s fourth largest commercial bank, the Commercial Bank of Zimbabwe, which trades as the Jewel Bank.

Among the parastatals he worked for is National Breweries, Zimbabwe Fertiliser Corporation and Van Leer. His banking career started at the Zimbabwe Development Bank.

Despite his links to the ruling party, opposition officials who spoke to newzimbabwe.com described Gono as a “level headed” person who mixed freely with members of all political parties.

“He is good at what he does and he is not one to pursue politics at the expense of national interest,” said an opposition MDC MP who preferred not to be named. “The trouble is that changes at the RBZ will fail to achieve the desired goal as long as Mugabe is Presindent.”
editor@newzimbabwe.com