MoB Capital Pvt Ltd

Registered Microfinance Institution

DEBT has been the biggest challenge in Zimbabwe’s recovery path. Apparently all of it seems to be bad debt, regardless of the fact that it could have been good debt then. Debt, if unchecked for long can be detrimental to the economy. A country laden with debt reflects on a population laden with debt. There is no way you can have a nation ravaged with debt and its population not sinking in debt


A country is a reflection of its people by mere simple deduction that those that run a country are also economic actors in their personal right. So, when a country has a deficit it says a lot about the propensity to debt the individual economic actors have.


A country’s profit and loss account reflects a thinking culture of the respective populace in that coordinate. There is a linear correlation between the two. A country’s subsets are its population subjects. For once let’s forgo the fact that I am into lending thus ordinarily will despise non performance on debt.


What debt denotes
Debt meaning is a way of subjective interpretation. Here we are not touching on good debt as explained in the article good debt bad debt. Debt overhang has that I don’t care attitude of someone that is being irresponsible or does not care anymore. Mostly this attitude is exhibited because there are consequences to having unserviced debt.


It can also be a sign that one has turned rogue and no longer fear repercussions that might follow. It is also telling of a deeper underlying structural economic challenges that are affecting the capacity to settle outstanding debts.


It is also a culture trait of just owing without doing justice to the financial obligation that will be accruing. Is it not time we kill criminalist debt to bring us into the right framework to stabilise our country.


Government debt
Given that the Central Bank has the legal instrument to adhere to and manage Government borrowings any shortcomings have to be criminalised. The guidelines are there. Thus, any wilful violations have to be dealt with decisively.


Unknowingly, violating the said Act will need remedy within the shortest possible timeline otherwise it has to be treated as wilful violation without any serious repercussions to send the right message.


These debts are bringing long suffering to our populace. The same principle should be practiced across the board. In other words, all governance issues should be criminalised and dealt with in accordance with the provisions of the law.


It will be in the best interest of the country for blacklisting as a guiding principle behind clearance for job seeking, bank accounts opening, funding requests and seeking credit and even for international relocation.


To enforce integrity the checking of blacklisted individuals should be ongoing to gauge going suitability of employees especially those mandated to hold in trust other people’s assets.


Blacklisting shouldn’t just be for individuals but even corporate bodies, local government and even parastatals. The need for credit rating across the board is a must if we are to turn around the economy.


Credit bureau
In the era of knowledge based economy information is empowering thus the need for an exhaustive central credit bureau. The credit registry has to capture all information on individuals and all registered bodies on where they have been on the economic front in terms of credit, defaults, court judgements etc that makes another party make an informed decision on the party in question. Such exhaustive data is the recipe for corrective action to credit philandering economic actors.


This tracking system is a crackdown on all those with adverse credit worthiness. Such information has to be easily available to would be users with punitive access costs to encourage more searches on credit worthiness for those seeking credit or clearance

Corporate governance

It is about time we took serious action on official bearers that run down companies or incur debts for companies only to close them down. We have to be responsible for our actions and pierce the limited liability corporate veil. Senior managers, directors and accounting firms should be criminally liable for business failure or accumulation of unnecessary debts through acts of omission or commission. Lack of disclosure of material information by accounting firms should be criminalised and swift decisive action taken.


Debt settling, debt overburden
Let’s allow Government departments to settle each other’s debts by netting and those with net debts given time to remedy situation in accordance with standing rules and regulations. As a country debt burden has become cancerous and cannot be sustained any longer. The time is now to remedy and start on a clean slate through change of attitude/culture, penalising offenders, practicing good corporate governance and just being great citizenry knowing there is karma (what goes around comes around).


Legal recourse
All issues to do with debt redress must be subjected to express dedicated courts that can expedite resolutions.


Such cases have to be dealt with in the shortest possible time to aid continuity of economic activities. Debt cases resolves that take ages are detriment to the economic being of the involved parties especially the aggrieved part assuming they are in the right. God bless Zimbabwe. God grant wisdom to Zimbabweans.


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