No return of Zimbabwe dollar: minister

AFP

HARARE: Zimbabwe on Monday launched a six-year economic blueprint aimed at reviving the country's economy, firmly rejecting a return to the local currency that was abandoned in January, a cabinet minister said.

"It must be clear that the way we are planning our economy is to have a strong currency which is not the Zimbabwe dollar," said Elton Mangoma, the economic and planning minister.

"The Zimbabwe dollar will bring its own problems and we don't want those problems," he told a news conference. "We look at ourselves continuing with the multi-currency system."

The local currency was left worthless by years of hyperinflation estimated in multiples of billions. Government abandoned the Zimbabwe dollar in January, and since then has conducted trade in US dollars, South African rands, and other currencies.

Mangoma said the economic blueprint calls for an improved investment climate, beginning with the signing of an investment deal with South Africa, expected later this month.

"I'm sure the South Africans are happy," he said of the long-delayed pact, without providing details of its terms.

Zimbabwe's economy is expected to grow this year for the first time in a decade, with the International Monetary Fund predicting growth of 3.7 percent.

Long-time rivals President Robert Mugabe and Prime Minister Morgan Tsvangirai formed a power-sharing government in February aiming to end 10 years of political and economic crisis, but the deal remains bogged down in a slate of disputes over key appointments and politically motivated arrests.