Eddie Cross, an economist and former member of the Reserve Bank’s Monetary Policy Committee, says economic problems are being caused by “entrenched interests” whose selfish actions are “almost a form of State capture”.
Cross, who authored President Mnangagwa’s biography, said the President must be careful of his advisers and close friends.
Cross further warned that any good President must be constantly alert to the interests of the nation and those of his closest advisors.
“The President has got to be careful what he listens to,” says Cross. “I’m afraid personal interests of those around the President are so powerful that, in a sense, we have a form of State capture here.”
Cross said entrenched interests in President Mnangagwa’s inner cricle are so powerful that Zimbabwe almost has a State capture.
In an interview with the State-owned broadcaster ZBC, Cross says Zimbabwe generates US$34m per day, compared to Zambia’s US$13m, yet the neighbouring country is faring much better.
The former MDC Senator said at independence in 1980, Zimbabwe inherited an uncompetitive and inefficient economic system the Rhodesia government had created which served only a few privileged whites. But Mugabe’s Government failed to reform that economy, he said.
Regards the gold coins set to be introduced by the central bank, Cross emphasised that Zimbabweans regard the US dollar as a safer haven and store of value, so the coins might not make any monetary significance in the bigger scheme of things.
Cross says Zimbabwe must get rid of its foreign exchange auction and adopt conventional foreign exchange management. The auction worked initially because it could meet demand, but it has since become a burden to the already struggling economy, Cross reckoned.
Watch a section of the Eddie Cross interview below: