admin
Prof Mthuli Ncube-Minister of Finance
In Zimbabwe, we know what it means to face tough times. We also know what it means to overcome difficult challenges. We have the spirit. And we have the determination.
Following a brutal, once in a century global pandemic, the great challenge of our time is to get our economy back on track.
For our country, the economic disruptions brought about by the pandemic could not have hit us at a worse time.
Inflation was finally coming down, and we had even balanced our budget; something very few countries on the continent have managed.
As Covid-19 hit, many once again believed our economic outlook would darken.
However, in the face of adversity, we responded quickly. And as a result, as we enter 2022, an entirely different picture has emerged.
By every metric, our country’s economic fever is breaking, as we once again begin to fill our economic lungs. The perseverance of our people, and tough choices made by our Government have put us on the path towards economic recovery.
And while the road ahead will be difficult and require the continued resilience of our people, I am eager to report that our actions are beginning to work.
Upon taking office as Minister of Finance, my top priority was to act aggressively against hyperinflation. As we all know, out of control inflation had caused sharp price increases for the everyday essentials upon which our nation’s working families rely.
In personal conversations with my fellow Zimbabweans, I saw just how inflation touched their daily lives.
I spoke to mothers who explained how difficult it was to plan for their family’s future due to price instability.
I spoke to business owners who lacked the confidence in our currency to make long term investments that would create new jobs.
We therefore set ourselves the ambitious goal of grasping the reins of inflation and taking back control.
We refused to dwell on the politics of blame, and instead focused on solutions. We have made and will continue to make the necessary tough choices to restore confidence in Zimbabwe’s markets.
We have strictly mandated adherence to the cash budgeting principle and eliminated the quasi-fiscal activities of the RBZ, and last year, despite the pandemic, we managed the budget deficit within the NDS1 target of 1,5 percent.
Meanwhile, we continued to aggressively combat corruption, the wasting of resources and other inefficiencies.
The data we received at the end of 2021 show that our efforts are having their desired effects.
From runaway triple figure inflation, by December 2021 year-on-year inflation had dropped to 60,7 percent. In 2022, our Government plans to halve that number to achieve an inflation target of 32,6 percent and implement an end period range of 15-20 percent.
These are of course still fairly high figures, but they are light years away from the numbers we have seen in the past.
Indeed, the guiding principle of our economic policy is to promote macroeconomic stability, ultimately improving the quality of life for each and every Zimbabwean.
Moreover, by further stabilising our currency, we will promote greater confidence in our economy, preserve the value of our citizens’ savings, and allow for better economic planning by our private sector.
Therefore, we have included a raft of counter inflationary measures in the 2022 national Budget, which will provide an historic $293 billion investment in our national infrastructure.
Substantial provisions have been made in our Budget for cutting-edge projects in all sectors, including transport, energy, water and sanitation, health and education among others.
Importantly, we are investing $47,5 billion in developing new roads, $39,3 billion in new housing development, $21,8 billion towards dam construction projects, and $5 billion for water and sanitation infrastructure.
In 2022, we are also set to unveil a major expansion of Robert G. Mugabe International Airport, which is crucial for a booming tourism sector and for attracting investment.
Close partnerships between the public and private sectors – especially the construction sector – will enable us to deliver on our goal of making Zimbabwe an Upper Middle-Income Society by 2030.
National budgets represent an articulation of a country’s priorities and values.
With historic allocations towards infrastructure projects, our priorities are patently clear: investment in our people; investment in your future.
The next chapter of Zimbabwe’s history therefore will be written by you, and we must ensure the infrastructure is in place to support it.
These once-in-a-generation infrastructure investments also present a unique business opportunity for local construction companies.
The public spending in our 2022 budget is projected to substantially benefit the construction industry, more than doubling the sector from 7,2 percent in 2021 to 17,4 percent in 2022.
The process of rebuilding and revitalising critical national infrastructure will require a further deepening of the Zimbabwean Government’s partnerships with the construction sector.
Our goal with these investments is simple: To improve the quality of life for the people of Zimbabwe.
We want all our citizens, urban and rural, young and old, male and female, to feel real, tangible improvements in their daily lives. Infrastructure projects are the key to connect Zimbabweans and build the bridge to prosperity. Our country’s positive metrics in reducing inflation, growing GDP, and investing in infrastructure are building a strong foundation for a shared economic future.
We report these numbers knowing full well that positive figures can take time to translate into higher living standards for everyday citizens.
Far too many of you still suffer and we are not deaf to your cries; we know the pain is real. But despite the pandemic, real change is on the horizon and within touching distance for all.
As we look ahead, we in the Government know our work is just beginning.
We will continue to toil, advancing along the path to provide relief, recovery and a better future for all of our people.
Online Reporter