A FINANCIAL expert has warned against public displays of unexplained wealth, saying that behaviour could trigger a fresh wave of international financial isolation of the country.
Speaking at the just-ended Zimbabwe National Chamber of Commerce (ZNCC) congress in Victoria Falls, the founder of Management Solutions and CBZ Financial Holdings group chairman, Luxon Zembe, said disorderly financial behaviour was fuelling global concerns over Zimbabwe’s financial integrity.
“We have a disorder that is choking markets. We have a situation where Zimbabweans go into the streets and wave millions of cash.
“That behaviour puts every Zimbabwean at serious risk because the world asks, where did that money come from? When Zimbabweans go into the streets and wave millions of cash, it raises red flags internationally,” said Zembe.
He warned that such a conduct, if left unchecked, would limit Zimbabwe’s access to international financial systems.
“Today, we are at the epicentre of illicit financial flows and money laundering because of those behaviours. If they are not careful Zimbabwe is going to be grey-listed and once we are grey-listed, it means we cannot trade with the whole world in terms of financial systems.
“We will go back to the whole country being sanctioned. People should make their money but they should exhibit behaviour that does not put everyone at risk. The authorities should do more to curb such malpractices,” Zembe added.
Meanwhile, Zembe called for urgent action from financial regulators to address policy inconsistencies and lead reforms that restored confidence in Zimbabwe’s financial system. “One of the roles of financial markets is the efficient allocation of capital. But across Africa, we struggle with inefficiencies due to policy failures.
There is a need for central banks to step up and guide policy direction effectively,” he said. He also called for collaboration and the integration of artificial intelligence (AI) to build resilience in a rapidly changing global economy.
“We are living in a volatile, uncertain, and complex environment. We must turn these complexities into opportunities. Africa must reimagine its financial systems to remain competitive,” Zembe said.