The minister said the TSP will mainly focus on
stabilizing the macro economy, building a private
sector-led economy, addressing infrastructure gaps,
and launching quick-wins to stimulate growth.
will also focus on measures to contain budget
expenditure, civil service reforms, ease of doing
business, containment of government wage bill
currently consuming over 90 percent of government
revenue and right sizing of government workforce.
"The realization of the TSP short-term quick wins
for the economy will be underpinned by adoption of,
and strict adherence to, macro-economic
stabilization policies that require painful
trade-off and sacrifice," Ncube said.
The minister, meanwhile, defended the two cents
tax on every dollar transacted electronically that
he announced on Monday this week, saying it was
necessary to widen the tax base and raise more
funding for social services.
Zimbabweans were previously taxed 5 cents per
every transaction regardless of the amount involved.
The tax has attracted widespread condemnation
from a cross section of Zimbabweans and many
businesses have since hiked prices of their
commodities and services following the introduction
of the tax.
"The tax is a shock to the people but we do need
austerity now and we need to fix this economy
"It is better we take more pain at the beginning
and then afterwards we stabilize our macro economy
and we go forward," he said.
Zimbabwe’s economy is currently reeling from
foreign currency and cash shortages which have in
turn spawned shortages of fuel and medicines, among
economy forecast to grow six percent
in 2018 backed by reforms says finance minister
(Xinhua) -- Zimbabwe’s
economy is projected to grow by about six percent in
2018, up from the initial projection of 4.5 percent
due to several economic reforms that have been
implemented by the new government of President
Emmerson Mnangagwa, finance minister Mthuli Ncube
Central bank governor John Mangudya also said the
strong growth in agriculture and mining would drive
growth this year, but stressed the need for Zimbabwe
to ratchet up the reforms and accelerate
re-engagement with international financial
institutions in order to secure fresh offshore lines
of credit to revive the distressed economy.
The two were speaking while jointly presenting
their mid-term fiscal and monetary policies
"If this six percent is realized, then Zimbabwe
will join what I call the six percent club, a
grouping of countries in Africa that are growing at
six percent and above," the minister said.
He said the economic challenges facing Zimbabwe
were not insurmountable but required urgent and bold
Among the challenges were foreign currency and
cash shortages, an unsustainable high budget deficit
and current account deficit, emerging inflationary
pressures, infrastructure deficiencies and weak
social services delivery, Ncube said.
He said the high budget deficit was destabilizing
financial sector stability and crowding out the
private sector, resulting in suppressed national
"The (high budget deficit) has also increased
money supply in the economy, translating into
exchange rate misalignment and inflationary
pressures," he said.
Government’s domestic debt jumped from less than
300 million U.S. dollars in 2012 to 9.5 billion by
August 2018 while foreign debt stood at 7.4 billion
In total, government debt stood at a whooping
16.9 billion dollars, the minister said.
To contain the high budget deficit, the minister
said government will limit the use of the Reserve
Bank of Zimbabwe’s overdraft facility and also
curtail RBZ advances to the government.
He said Zimbabwe was in dialogue with the World
Bank, African Development Bank and the European
Investment Bank to clear a combined 2.5 billion
dollars that it owes the three multilateral
The debt ridden country was also engaging the
Paris Club to restructure its 2.8 billion dollars
Governor Mangudya said Zimbabwe needed to take
painful and tough decisions to turn around its
economy, and announced a raft of measures to improve
supply of forex and boost confidence in the economy.
He said despite inflationary pressures in the
economy, Zimbabwe’s inflation was projected to
remain within the Southern African Development
Community’s inflation benchmark of seven percent.
The central bank had arranged for 500 million
dollars in offshore lines of credit to finance
critical imports as well as another 255 million
dollars to prop up the economy, he said.
Mangudya gave banks up to Oct. 15 to comply with
a central bank directive to allow clients to open
separate Nostro and RTGS foreign currency accounts
in order to preserve the value of money for
generators of forex.
The governor also said drivers of foreign trucks
will now purchase their fuel in Zimbabwe in U.S.
dollars to curb their abuse of foreign exchange
distortions on the market.
Mangudya emphasized that curbing corruption and
boosting production to generate foreign currency was
key to drive growth in the economy.
He also refuted claims that the central bank was
dealing in the thriving parallel market for foreign
Meanwhile, the finance minister said Zimbabwe
should consider establishing a regional fuel dry
port as a long-term solution to the fuel crisis it
is facing due to the ongoing shortage of forex.
He also dissolved the board of the tax revenue
collector, ZIMRA and said a new board will be
government says to continue levying
resettled farmers to raise compensation funds
HARARE Zimbabwe (Xinhua) --
The Zimbabwe government
will continue to levy resettled farmers to raise
funds to compensate former white commercial farmers
who lost their land during the land reform program,
agriculture minister Perence Shiri said.
Zimbabwe has pledged to compensating former white
commercial farmers whose land was expropriated.
Shiri was quoted by the state news agency New
Ziana on Thursday as saying that the rental and land
development levies, introduced in 2015, would help
in raising the compensation funds.
"There are improvements which were done on the
farms and the new farmer is utilizing those
"It makes common sense that instead of laboring
the tax payer, the person who is directly benefiting
from those improvements contributes towards the
compensation of the former farmer," he said.
He, however, said the compensation was not being
done directly by the new farmer to the former farmer
but through government.
"The policy is that the new farmer pays for the
improvements on the farm and that money is used to
compensate the former farmer.
"That is the government position, if the money is
not enough then probably government may chip in, but
the new farmer has to contribute," he said.
The minister added that leases which are paid by
the farmers at the rate of 3 U.S. dollars per
hectare per year were also going towards the
compensation of the former farmers.
The former white commercial farmers are
reportedly demanding 9 billion dollars compensation
from the government.
to boost horticulture production
HARARE Zimbabwe (Xinhua)
-- Zimbabwe will next week
host the first international horticulture and
floriculture trade show, HortiFlor, as the nation
seeks to boost exports and become once again one of
Africa’s top horticulture exporters.
"Zimbabwe will, in a relatively short time,
become one of Africa’s largest exporters of
horticultural products," Dick Van Raamsdonk of HPP
Exhibitions was quoted as saying by online
agriculture publication, Farmers Voices, on Tuesday.
He said the Oct. 9 -11 trade fair is open to
players in the fresh flowers, vegetables and fruit
Over 50 Zimbabwean and international companies
will showcase their products and services at the
event, Van Raamsdonk said.
After having been Africa’s second largest
exporter, the Zimbabwean horticulture industry is
eager to climb back up the ladder and again become
one of Africa’s top exporters.
According to Van Raamsdonk, the industry can
achieve this within five to 10 years as they do not
have to start all over.
"They are not starting from scratch.
"The know-how is still there; surprisingly a lot
of know-how actually is available," he said.
One major factor that could hold back the country
is high transport costs, Van Raamsdonk said.
"They are high as the cargo volumes are low.
"However, if the cargo volumes increase, the
transport costs will decrease and that is when the
strength of Zimbabwe will show to its full extent,"
Van Raamsdonk said Zimbabwe grows many summer
flowers, expressing the hope that a good market for
them could be established.
However, he noted, Zimbabwe will not rise to
become a fierce competitor for other African
countries like Kenya and Ethiopia.
"Zimbabwe will complement the assortment of Kenya
and Ethiopia, as roses are their main product.
"I would sooner think that Zimbabwe can become a
competitor for South America.
"The price of Zimbabwean flowers will be lower
than those from South America," Van Raamsdonk said.
Horticulture production, which used to be
Zimbabwe’s third largest agriculture export sector
after tobacco and cotton, declined significantly
over the past years due to disturbances caused by
the land reform program.
U.S. dollar 1.4 million dollar grant to
support Zimbabwe refugees
HARARE Zimbabwe (Xinhua)
-- Zimbabwe and the
African Development Bank (AfDB) on Monday signed a
1.4 million U.S. dollar grant agreement to support
about 20,000 refugees and asylum-seekers in
Tongogara Refugee Camp.
The funds, running from 2018-2020, will assist
the refuges and about 15 percent of communities
surrounding the camp to improve their technical
capacity to adopt innovative solutions for
self-reliance and enhanced economic livelihoods.
"It (the grant) will provide employment to
unemployed youths from the refugee and host
communities, build knowledge on how to combat sexual
and gender-based violence, and develop skills
through training on market access and links,"
finance minister Mthuli Ncube told the signing
ceremony for the grant.
He said such funding would significantly
contribute to the government’s vision of
transforming Zimbabwe into a middle-income economy
United Nations High Commissioner for Refugees (UNHCR)
Zimbabwe representative Robert Tibagwa thanked the
Zimbabwe government for its continued support to
improving livelihoods of refuges in the camp.
He said a large number of the refugees, including
newcomers from neighboring countries, remain
vulnerable and are in need of urgent support.
AfDB country manager Damoni Kitabire said he
hoped the funds will be disbursed fast to enable the
youths to benefit from the grant through
Tongogara Refugee Camp, located 420 km southeast
of Harare, is home to thousands of refugees who have
fled war and civil strife in different parts of
bankers join fight against card cloning
HARARE Zimbabwe (Xinhua)
-- The Bankers Association
of Zimbabwe (BAZ) on Monday said it has joined hands
with the Reserve Bank of Zimbabwe to protect the
banking public from rampant card-cloning.
More than 150 cases of card-cloning were reported
between January and June this year, with the police
warning businesses and private individuals to be
wary when conducting point of sale transactions.
Card-cloning involves the production of
counterfeit cards by criminals after fraudulently
acquiring debit or credit card information contained
in the magnetic strip of cards.
According to police, criminals target victims
mainly at food courts, liquor outlets, fuel stations
and casinos where they operate in cahoots with till
operators who swipe the cards on devices called
grabbers, which copy all the information from the
The till operators take note of customers’ PINs
which they transmit to their accomplices.
The BAZ advised bank clients to never release
their cards to unauthorized people and to ensure
that their cards remained in sight all the time
"Do not allow a till operator or vendor to take
your card out of sight. Never disclose your PIN to a
third party, especially strangers," the association