- Published on 05 February 2016
- Written by Online Correspondent
Unparalleled high levels of greed and insatiable appetite for personal enrichment have all come at a cost to the economy.
The endemic corruption has contributed to the low capital inflows, un-competitiveness of the local industry and poor economic performance.
Zimbabwe's awakening giant story continues to be derailed by the widespread corruption in both the public and private sector.
While individuals benefited from diverting national resources for their personal use, the biggest loser has been the broader economy.
Reserve Bank of Zimbabwe Governor Dr John Mangudya says Zimbabwe is a potentially rich country with a sound human capital base.
He, however, says the transformation agenda faces a serious threat due to the lack of self-discipline.
"The question is what is the missing in the transformation drive. It’s lack of discipline. It’s lack of transparency. It’s lack of confidence. It’s lack of trust," said Dr Mangudya.
Bribery, embezzlement, fraud, externalisation of funds and deep-rooted dishonesty have all combined to scare potential investors.
Zimbabwe Commercial Farmers Union president Mr Wonder Chabikwa says in the process this has ensured that the country loses out of foreign direct investments inflows.
"The ratings on corruption have not been impressive. The net effect of the widespread corruption is of course the fact that we are losing out in terms of capital inflows," Mr Chabikwa said.
According to statistics from the RBZ, local firms externalised US$1.2 billion in the form of export sales proceeds in 2015.
Zimbabwe National Chamber of Commerce deputy president Mrs Devine Ndhlukula reckons the overall effect of the widespread corruption has been sluggish economic development and an increase in the cost of doing business in Zimbabwe.
"Corruption has meant that the cost of doing business in Zimbabwe is high compared to other regional countries and this is not sustainable," said Mrs Ndhlukula.
The RBZ Governor’s call for self-discipline and accountability deserves to be reiterated.
According to Dr Mangudya’s own words there is need to, “draw a line in the sand and never cross it. We need a paradigm shift.”