Gideon Gono
Gideon Gono | |
|---|---|
| Born | November 29, 1959 |
| Occupation(s) | Banker, Economist |
| Years active | 1977–2013 |
| Known for | Governor of the Reserve Bank of Zimbabwe (2003–2013) |
Gideon Gono (born 29 November 1959) served as Governor of the Reserve Bank of Zimbabwe from 2003 until 2013 and previously held the position of CEO at CBZ Bank Limited. He became widely recognized internationally for his involvement during Zimbabwe's period of hyperinflation in Zimbabwe.
Early career and education
Gideon Gono embarked on his professional journey in 1977, starting as a tea boy at National Breweries located in Que Que. Through correspondence studies, he progressed from O-Level to A-Level qualifications. Subsequently, he worked as a bookkeeper with Zimbabwe Fertiliser Company and later as an accountant at Van Leer Packaging. In 1987, he joined the Zimbabwe Development Bank as finance manager and was eventually promoted to general manager.
In 1995, Gono was appointed managing director of the Bank of Credit and Commerce of Zimbabwe (BCCZ), where he transformed the institution into the nation's largest and most prosperous bank, earning it the nickname "Jewel Bank." This success paved the way for his later appointment as governor of the Reserve Bank of Zimbabwe.
He holds an MBA from the University of Zimbabwe, where he also served as a lecturer and chaired the university council. The same university conferred an honorary degree upon him. In 2007, Gono was awarded a PhD in Strategic Management by Atlantic International University, an organization often criticized for lacking academic rigor.
Tenure as Reserve Bank Governor
Gono assumed the governorship of the Reserve Bank in November 2003, recognized for his track record in financial restructuring, particularly at the Commercial Bank of Zimbabwe. His term was renewed in November 2008 for an additional five years commencing 1 December 2008. He concluded his leadership role on 30 November 2013 after ten years at the helm.
Policy outcomes
Upon taking office, Gono introduced contentious measures aimed at preserving the Zimbabwean dollar amid profound economic turmoil. Despite his focus on financial recovery, several issues not only persisted but intensified:
- Persistent cash shortages
- Deficits in fuel and agricultural inputs
- Legal actions against corrupt business figures and sanctions imposed on banks breaching regulations
- Inflation reaching unprecedented levels, escalating unemployment, and deterioration across health, education, and agricultural sectors
Zimbabwean Dollar and Inflation Dynamics
To support the economy despite ongoing international sanctions since 2000, the Reserve Bank significantly increased currency issuance. This approach, endorsed by President Robert Mugabe but contrary to international economic counsel, resulted in extreme currency depreciation and hyperinflation.
On 1 August 2006, the Reserve Bank withdrew old notes from circulation and launched a new currency where one new dollar was equivalent to 1,000 old dollars. In subsequent months, denominations escalated rapidly—from hundreds of thousands to billions—mirroring hyperinflation’s severity. Between this revaluation and June 2008, the money supply expanded by more than twenty million times.
Gono refuted claims that he opposed government-mandated price reductions intended to combat inflation. However, these enforced cuts caused widespread product shortages and led to closures among businesses. He deployed law enforcement to ensure compliance with price controls and personally engaged retailers in Harare to enforce these measures. Despite such interventions, Zimbabwe continued to experience the highest inflation rates globally. Following dollarization in 2009, inflation reversed into deflation by 2014.
Observers noted Gono’s frequent incorporation of biblical language in monetary policy declarations, often concluding with statements such as: "In the Lord's hands, I commit this Monetary Policy Framework for our economic turnaround."
Banking institutions and currency exchange
Several financial institutions that attempted to evade regulatory requirements had their operating licenses revoked or were placed under official administration. During this time, Gono faced criticism for ordering the closure of 16 money transfer companies.
Agricultural sector
Confronted with shortages of agricultural inputs, the Reserve Bank of Zimbabwe (RBZ) stepped in to facilitate the acquisition of fertilizers and farming equipment. Supported by Vice President Joyce Mujuru, Gono consistently condemned the farm invasions promoted by ZANU-PF, emphasizing their detrimental impact on the economy. This position was at odds with other cabinet members, including Lands Minister Didymus Mutasa.
In an interview with the government-run The Herald, Gono strongly criticized the vandalism of horticultural greenhouses, tobacco curing barns, and ongoing farm seizures, pointing to internal factionalism and mistrust as significant hurdles.
Gono recognized that his attempts to restore economic stability in Zimbabwe were hindered by factors beyond the central bank’s influence, such as political interference, international sanctions, drought conditions, underutilized farmland, corruption, and challenges in law enforcement. He attributed some economic difficulties to sanctions, a viewpoint contested by detractors.
Critics contend that Gono maintained his position as RBZ governor largely due to Mugabe’s backing, highlighting Mugabe’s continued support and commendations despite Zimbabwe’s severe economic downturn. Prior to his appointment as governor, Gono had an established financial association with Mugabe.
Personal life
Similar to many members within Mugabe’s close circle, Gono is reported to own multiple farms, including one located in Norton. Unlike others, he is said to have purchased his farm in the late 1990s before the land redistribution program that expropriated properties from white farmers.
In November 2008, Gono authored Zimbabwe's Casino Economy: Extra-ordinary Measures for Extra-ordinary Challenges, a book analyzing Zimbabwe’s post-independence economy during his initial five years (2003–2008) as Governor of the Reserve Bank of Zimbabwe.
On 24 October 2010, South Africa’s Sunday Times published a false report alleging an affair between him and Amai Grace Mugabe, widow of former President Robert Mugabe. This claim was reportedly fabricated amid internal political struggles within both the ruling party and the RBZ.
Personal sanctions
Due to his prominent roles as CEO of the Commercial Bank of Zimbabwe and later as Governor of the RBZ, Gono is prohibited from entering the United States. Although he was at one point included on—and later removed from—the European Union's sanctions list, the EU travel restrictions were lifted in 2013 following his retirement from public office. Nevertheless, he remains subject to U.S. sanctions. It is important to note that EU measures did not involve freezing any of his assets.
Awards
In 2009, Gono was honored with the Ig Nobel Prize in Mathematics for providing people with a straightforward method to handle an extensive range of numerical values by issuing banknotes denominated from one cent up to one hundred trillion dollars.
External links
- Ankomah, Baffour. "Gideon Gono: 'Zimbabwe Will Not Die'", New African, Aug/Sep 2007
See also
- List of individuals prohibited from entering the United Kingdom, which features Gono