Online Reporter
Zimbabwe hosted a well-attended side event on its arrears clearance and debt resolution programme at the recent African Development Bank (AfDB) annual meetings held in Abidjan, Côte d’Ivoire. Our reporter AFRICA MOYO, who covered the meetings, interviewed Finance, Economic Development and Investment Promotion Minister PROFESSOR MTHULI NCUBE for insights on the event and what to expect going forward
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Q: Can you start by giving us an overview of Zimbabwe’s participation at the 2025 AfDB annual meetings?
A: We had a very strong delegation at the annual meetings of the AfDB in Abidjan. The delegation was composed of stakeholders from various sectors — the Government itself and the private sector.
In terms of the issues that arose, the theme of the annual meetings was how to make Africa’s capital work better for the continent’s own development.
The timing for this kind of topic really is amazing because we have seen a drop in ODA (official development assistance) in African countries, in various sectors, including the social sector and education, but mainly health.
So, the more we discuss and find out ways to make Africa’s capital work better for the continent, the better.
And this is not just for the Government, but also for the private sector, and also raising additional capital within Africa for the private sector is critical.
This is to finance infrastructure development; to harness the demographic dividend and supporting the growth of entrepreneurs; to basically grow the jobs agenda, support the private sector to create more jobs.
We need additional capital for Africa.
It can be done; we need to harness it.
Q: On the opening day of the annual meetings, Zimbabwe appeared to get positive comments during the arrears clearance and debt resolution side event. What is your view of that and what is the next step for the country?
A: We had a side event on Zimbabwe to give an update to stakeholders on the arrears clearance process. Our event was warmly received. Everyone was very supportive, without exception.
And this time, we made sure we brought all the stakeholders involved, who gave an account as to what is going on. This included co-chairpersons of the various working groups, as well as some of the farmers benefitting from the compensation programme. So, this was warmly received. We got all the support we need.
And we are pleased that Dr (Akinwumi) Adesina (outgoing AfDB president) has pledged that he will continue to champion our arrears clearance and debt process.
Former President (of Mozambique Joaquim) Chissano also pledged to me that he will continue to support the process as a high-level facilitator.
Q: And how do we move on from here?
A: The next step is for us to complete our negotiations on the Staff Monitored Programme.
But also, we will work on the other pillars — the governance pillar, as well as the farmer compensation and land pillar. We are pleased with the progress that is taking place around all those pillars as well.
So, I think those are steady signals, and we feel there is very good progress.
Our vision is that this time around next year, we will be able to have made significant progress.
Q: There are some people who are concerned about the Public Voluntary Organisations (PVOs) Act and fear the law may scuttle the process. What is your view on that?
A: Oh no, it will not scuttle the process.
We are aware that creditor partners would have preferred that it was not signed quickly, and so forth.
But look, it has now been signed and my message to them is, look, every law, whatever it is, there is always an opportunity to have new input.
Q: Turning to the election of a new president for the AfDB, Dr Sidi Ould Tah, what is your view on that?
A: Oh, well, as you know, during the annual meetings, a new president was elected.
He is from Mauritania. As SADC (Southern African Development Community), we had our own candidate, who is from Zambia. That candidate came out number two, but he fought a good fight.
However, we now have a new president of the bank and all of us will rally behind that president from Mauritania so he can deliver for all our countries in terms of infrastructure development; the demographic dividend; supporting climate shocks; we need the bank to support that.
So, we will rally behind the president and any strategies he may have.
Q: Have you already spoken with him to assess his stance on Zimbabwe’s arrears clearance and debt resolution process given that Dr Akinwumi Adesina, the outgoing president, said his successor will continue with the process?
A: No, not yet, but I must say this: Remember, he is a former president of BADEA (Arab Bank for Economic Development in Africa).
While he was there, he was always very supportive of Zimbabwe, so we hope he will continue to do so.
I really haven’t met him because he has been busy since his election, but we are confident he will support our arrears clearance.
Q: Let us move on to the topic of taxes and regulatory fees for businesses in Zimbabwe. How far have you gone with overhauling the taxes and regulatory fees, as was directed by President Mnangagwa last year?
A: Oh, we are making very good progress. The issue really is regulatory fees, it’s not taxes; it’s regulatory fees, and those two are different because taxes are collected by the Central Government through ZIMRA (Zimbabwe Revenue Authority) and the regulatory fees are collected by agencies, in line with regulatory processes.
So far, we have been focusing on the dairy sector, the food processing sector,
but also the beef and meat processing sector.
There is a lot going on there, and very soon you will see us gazette the new fees that will really lower these fees.
We are moving in stages. After these three sectors, we are going to move on to the next sectors. So, we will keep going in stages.
There is a lot of work to do, but we are on to it. We really want to lower the cost of these fees.
Q: Any chance that some of these regulatory fees might be scrapped?
A: Yes, some of them will be scrapped.
I cannot front-load what we will implement through the issuance of an SI (statutory instrument), but some of them will be scrapped, for sure.
Q: And there are concerns that we continue to have more taxes. Just recently, a new fuel levy was introduced, and people say, ah, now we are going to be taxed to the last drop of blood. What is your comment on that?
A: No, no, not at all. You know what, I think it’s fair to say, colleagues, all countries, especially African countries, are under pressure.
So, there is need to do something about domestic resource mobilisation.
And this is to support critical sectors like health, education, social protection, including productive social protection in agriculture.
These are critical sectors that we hold, where 60 percent of our citizens are impacted. If you think of the Pfumvudza/Intwasa programme, for example, there is 60 percent of the population that lives in the rural areas, and they need to be supported.
So, all these kinds of taxes, not regulatory fees which go to agencies, go towards such programmes.
But for taxes by the Central Government, we know where that tax is going, and it is budgeted for by Parliament.
It is very clear where it is going. If you look at the health sector, for example, that drop in ODA (official development assistance), if we can look at that cut, which was supporting the HIV/AIDS programmes, that is a serious hole that needs to be plugged.
And I am pleased that some of the taxes will go a long way in plugging those
holes.
