Letters to the Editor

Diaspora bond for restoration of infrastructure on the cards

EDITOR — The Patriotic Zimbabweans (PZ) Party which was formed in January 2021 by Zimbabweans in the diaspora and at home, has developed as part of its economic policy, a genuinely Zimbabwean solution to financing capital projects in the country.

Currently, the country’s infrastructure such as highways, railways, aviation, dams, water supply and sanitation and medical facilities among others are in a state of disrepair or have either collapsed.

The country’s infrastructure is in urgent need of rehabilitation in some cases and in others a major overhaul. The Zimbabwe Diaspora Bond (ZDB) for infrastructural restoration and development will ameliorate the historical proclivity to depend on foreign aid resulting in generational debt as well as a tragic continuation of an extractive and exploitative role of our traditional creditors.

The PZ Party, which is a development-oriented political organisation and an advocate for prioritising the interests of the Zimbabwean nation state and its citizens, views the ZDB as the appropriate facility to economically empower our citizens and the country. By their very nature, bonds are financial loans to a company or a government and most bonds pay fixed interest over time, meaning that every Zimbabwean lender will benefit in this proposed mutually beneficial process.

The PZ Party will soon avail the expertly conceived proposal to Zimbabweans living and working abroad whom the party views as the potential major contributors or stakeholders alongside their compatriots living within the country.

Economists and financial analysts consider bonds as being much safer than stocks, making it the primary reason why PZ Party settled for this instrument for citizens to participate in.

In western nations, most capital projects and operations are financed in this way so the party is simply following precedence while giving Zimbabweans an opportunity to invest in their country of heritage.

The African Development Bank (AfDB, 2011) posits that the amount and quality of a nation’s economic infrastructure has an important bearing on economic growth in both the medium- and longer-term.

The AfDB also noted that in Zimbabwe, “the sustained deterioration in the quality of infrastructure assets stemmed from very inadequate levels of public expenditures for routine and periodic maintenance of the infrastructure networks, especially in power, water and sanitation, and transport.”

In this mutually beneficial solution to Zimbabweans and the nation state, PZ Party proposes that this economic blueprint needs to be tied with fundamental political reforms such as the enfranchisement of the diaspora, among other key areas.

According to estimates, there are around four million Zimbabweans living outside the country in countries such as South Africa, Namibia, Zambia, Botswana, United States, United Kingdom, Australia, New Zealand, and Germany.

So far in 2021, diaspora remittances have helped drive up foreign exchange inflows to $4,76 billion, up from $4,22 billion.

The PZ Party will guarantee that there are international best practices around the business associated with the system of operations so as to inspire confidence in Zimbabweans.

The party proposes that the bond will be administered in a fiduciary role by an internationally certified African financial institution.

PZ president

Charles Mutama

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