Zimdollar accounts remains an obstacle to new foreign direct investment

The chairman of the Parliamentary Committee on Budget, Finance and Investment, Paddy Zhanda said that frozen Zimbabwe dollar accounts will remain an obstacle to new foreign direct investment, if not settled soon

His statement comes at a time when an initial timeline for the start of the Zimdollar compensations has lapsed.

Mr Zhanda told delegates at a recent Zimbabwe National Chamber of Commerce breakfast meeting that the issue was contributing to negative foreign investor perception of Zimbabwe.

"The RBZ owes a lot of money to the private sector and this is a serious issue that cannot just fade away. It needs to be addressed," he said.

"Addressing this issue will also help to ensure that potential foreign investors can feel that their funds are safe."

The Reserve Bank of Zimbabwe decided to freeze all Zimdollar accounts after the introduction of the multi-currency system early in 2009.

This upset most companies as it left their balances at zero.

Last year, RBZ Governor Dr Gideon Gono assured delegates at a Confederation of Zimbabwe Industries meeting that individuals and companies whose Zim-dollar accounts were frozen would be compensated during the first quarter of this year.

"I am aware that as the year approaches its end, it will not be proper for the RBZ governor to speak on such an occasion as this without addressing the issue of those quintillions which businesses and some  genuine bankers lost when the country introduced the multi-currency system," said Dr Gono last December.

"Let me assure the nation, the business community and those individuals whose accounts were frozen following the dollarisation that they will be compensated within the first quarter of 2012."

He said at the time that the RBZ and the Ministry of Finance were working together on modalities to effect the compensations within the first three months of this year. But the first quarter has since elapsed and there has been no word on the issue by either the RBZ or the Ministry of Finance.

Meanwhile, Mr Zhanda said the RBZ and politicians should tone down the talk of a possible return to a Zimbabwean currency since the economy was not ready for such a move.

Earlier this year, Bankers’ Association of Zimbabwe president Mr John Mushayavanhu said at the end of last year local financial institutions experienced unprecedented levels of withdrawals after talk resurfaced of the return of the Zimdollar.

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