Timothy
Golden Sibanda
FINANCE Minister Mthuli Ncube’s 2021 midterm budget should carry measures that continue to support growth and prevailing stability, chief among them access to foreign currency, electricity and infrastructure, industry says.
The Confederation of Zimbabwe Industries (CZI) president Henry Ruzvidzo said this in an interview ahead of Minister Mthuli’s presentation of the 2021 national budget review to Parliament tomorrow afternoon.
He said CZI, the country’s largest industrial lobby group, had noted positive growth numbers from the majority of sectors in Zimbabwe, which pointed to good prospects for the economy.
Minister Mthuli projected in November last year the economy would grow by 7,4 percent this year, after a straight two-year downturn, largely driven by agriculture and mining, while inflation was forecast to end the year at 9 percent.
Economists are also in agreement with assessments made by the International Monetary Fund (IMF) and the World Bank, which predicted growth of 6 percent and 3,9 percent respectively.
Zimbabwe’s economy is forecast to grow, despite the long shadow of the Covid-19 pandemic, driven by a stellar agricultural season, commodity price boom on global markets, construction and electricity sectors.
“We expect the budget (review) to support the growth by continuing to ensure foreign currency availability, adequate electricity and other supporting infrastructure,” Ruzvidzo said.
He said production required adequate working capital and a conducive business environment. Ruzvidzo said it was therefore critical that monetary and fiscal discipline be sustained to maintain macro-economic stability.
“Currency reform continues to be carefully calibrated whilst addressing market distortion. We expect all subsidies will be fully provided for in the budget with some consideration for stimulating the hardest hit sectors by Covid-19,’ he said.
The CZI president said efforts by the Government to establish external lines of credit, following decades of hurtful illegal western embargo, must continue to sustain the growth momentum.
Analysts said they expected policy measures to cushion the economy and citizens from the pummelling of the third wave of Covid-19 are expected to feature prominently when Minister Mthuli’s budget review.
Bongani Ndlovu