Zimbabwe gov't not hesitate to invoke emergency rules to deal with errant businesses

HARARE, July 31 (Chinese media) -- Zimbabwe President Robert Mugabe has warned the business sector that the government will not hesitate to invoke emergency rules to deal with errant businesses that cause unnecessary suffering to ordinary Zimbabweans, state media the Herald reported on Thursday.

Mugabe said on Wednesday that there is need for behavior change in the economy to overcome challenges facing the country.

The Zimbabwe president made the remarks soon after central bank governor Gideon Gono unveiled a set of new monetary measures to curb the skyrocketing inflation in the country on Wednesday.

"The monetary policy measures just unveiled appear set to addressed a number of challenges that people have been facing especially as they relate to the new currency and cash limits," the Herald quoted Mugabe as saying.

"But, it is not the monetary policy alone or politics of the land that we look to for the turnaround of our economy, although these form the important and critical pillars to the process," the president said.

"What is required more than anything else is behavior change on the part of everyone, especially some of our businesses people who have been tempted to chase after wealth at any cost regardless of business ethics or discipline," he said.

The Zimbabwe president said the business sector is infringing on the people's needs and although the government was reluctant to deal sternly with unscrupulous businesses, circumstances that were forcing it to act.

"There is far much more we must do as Zimbabweans to turn around the country's economy but, first, we must become real selves, disciplines, real Zimbabweans . We do not work as individuals and remember that we do not live for us but for others," Mugabe said.

"We have a bond to work for each other. We must realize that we have similar interests, similar demands with the same biological and mental needs," the president continued.

"Do not drive us further through this indiscipline like what you have done in the past. It you continue driving us we will impose further measures. We have the power to invoke further measures but do not want to use the emergency rules," Mugabe warned.

"We want to leave you with your freedom, freedom to make your decisions and to operate on your own . Emergency measures can be taken but we do not want that yet. We can do that to deter unjustified price increases," the president said.

Mugabe admitted that there are shortages of basic commodities especially maize and wheat, shortages of foreign currency with which to import fertilizers and chemicals.

The president also admitted that the economy of the country has under-performed in some areas.

Mugebe urged the business sector to produce for the benefit of the communities.

Commenting on the new currency introduced by the central bank governor, the president said with it, there is need to ensure services and goods were within the reach of all Zimbabweans.

He further said that the unveiling of the new currency marks the beginning of the renewed hope and optimism for the country's economic recovery.

"Our optimism is anchored on our commitment to work harder than before toward addressing all the challenges be they political, social or otherwise," Mugabe added.

The Zimbabwe central bank has unveiled a set of new monetary measures to curb the country's hyper-inflated currency and answer calls to relax limits on cash withdrawals from bank accounting.

According to Zimbabwe state media the Herald, the measures which announced by central bank governor Gideon Gono on Wednesday mainly include the introduction of a new currency, raise of daily cash withdrawal limits and the introduction of old coins in circulation.

Representing his 2008 mid-term monetary policy statement in Harare, the central bank governor slashed off 10 zeros from the country's currency, thus turning 10 billion dollars into one dollar. At the same time, the governor announced the introduction of a 500 dollar note.

While introducing a new 25 cent coin, Gono also announced the introduction of old coins which he hoped will increase the amount of money in circulation. The old coins include 5 dollars, 2dollars, 1 dollar, and 50 cent, 20 cent and 10 cent coins.

Further, the central bank chief raised the daily cash withdrawal limits by 1,900 percent to 2 trillion dollars or 200 dollars in the new currency.

The new and old currency will co-circulate with the existing bearer checks and special agro checks, which will expire on December 31.

The monetary measures will come into effect on Friday, the Herald reported.