Zimbabwe's Mthuli Proposes Raiding Custody Vaults
Zimbabwean Finance minister Mthuli Ncube's move to raid custody vaults at any time to ascertain their contents – envying people's valuables – and that financial institutions offering custodial services receipt their cash – which government is eyeing – has all but snuffed out any hope of Zimbabwe becoming a regional financial services hub.
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Zimbabwe is trying to make Victoria Falls a regional financial hub like where a number and a variety of financial services institutions are based and headquartered. It has already established the Victoria Falls Stock Exchange as part of that.
Yet the country has shown that its government and leaders cannot be trusted with any money at all.
Government previously raided companies' hard currency accounts and stole people's monies through unpredictable policy shifts, particularly via currency changes and exchange rate manipulation.
After badly running down the economy and shrinking its tax base, hence low tax revenues, the Zimbabwean government has resorted to extortionate taxes to squeeze more money out of the poor, while remaining extravagant, buying expensive cars and gallivanting around the world using taxpayers' money.
However, Ncube's move to raid custody vaults will have far-reaching consequences on Zimbabwe’s reputation as a country where authorities always want to eye and seize people's money.
Compare Zimbabwe to Mauritius.
While Zimbabwe is destroying its reputation and making it hard to trust it to become a regional financial services hub, Mauritius is reaping rewards of good governance and policy consistency.
Mauritius has positioned itself as Africa’s financial services hub, with strong links to the international markets.
Zimbabwe's Mthuli Proposes Raiding Custody Vaults
It has made itself stand out, through its number of bilateral and multilateral agreements with several countries across the globe aiding investment and capital across borders.
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It has also established itself as a hub for financial services, with its strong regulatory framework and business-friendly policies attracting a significant amount of investment capital.
Since gaining its independence in 1968, Mauritius went through a remarkable transformation.
Now prides itself in having a diversified economy, with a clear economic strategy: to accelerate the established sectors, including agriculture, hospitality, financial services, research and intelligence, and fintech.
Today it is well-positioned to provide the springboard into the African continent.
A business-friendly environment with a simple tax system has contributed to the success of Mauritius as a preferred platform for investment in Africa.
One of the key ways in which Mauritius attracts financing and funding to businesses in Africa is through its robust financial services sector.
The country has established itself as a hub for financial services, with its strong regulatory framework and business-friendly policies attracting a significant amount of investment capital.
#VampireState
Zimbabwean Finance minister Mthuli Ncube's move to raid custody vaults at any time to ascertain their contents – envying people's valuables – and that financial institutions offering custodial services receipt their cash – which government is eyeing – has all but… pic.twitter.com/YnA28dNlld— TheNewsHawks (@NewsHawksLive) December 1, 2023
