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Zimbabwe doubles spending as it targets growth of 5.5 percent in 2022

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BY GODFREY MARAVANYIKA AND RAY NDLOVU

Zimbabwe aims to almost double spending next year to help shrug off the effects of the coronavirus pandemic and two consecutive years of economic contraction.

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Expenditure is projected to increase to $927.3 billion from a revised $509 billion estimated in 2021, Finance minister Mthuli Ncube said in his budget speech in Harare, the capital, on Thursday.

Part of the money will be channeled to infrastructure and state-owned companies, including to recapitalise the national airline, he said.

The increased spending will help drive economic growth, with a 5.5 percent expansion in gross domestic product seen in 2022 compared with 7.8 percent this year, he said.

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The economy shrank 5.3 percent in 2020, Finance Ministry data shows and contracted 6.1 percent the year before, according to International Monetary Fund data.

“This 2022 national budget seeks to buttress the growth trajectory established in 2021, and enable the economy to build resilience against shocks, including the Covid-19 pandemic,” Ncube said.

The government is targeting $850.8 billion in revenue next year, up from an estimated revised $495.1 billion in 2021.

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Part of that will come from taxes, borrowing of $76.5 billion and an additional drawdown from reserves known as special drawing rights, the finance minister said.

SDRs of almost US$1 billion have been allocated to the southern African nation by the IMF.

The expenditure increase will widen the budget deficit to 1.5 percent of GDP, from 0.5 percent this year.

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The gap will be partly funded by the issuance of dollar denominated government bonds of as much as $100 million to be listed on the Victoria Falls Securities Exchange during the first quarter of 2022, he said.

To halt a slide in a local currency that’s plunged 29 percent against the dollar this year, hurting the nation’s finances and fueling inflation, the government is reviewing the current foreign currency auction system, further tightening monetary policy and curbing “malpractices” in the financial sector, said Ncube.

Zimbabwe will use US$280 million of the SDR to support its beleaguered currency, the budget statement shows.

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The instability in the foreign-exchange market is being driven by an unrelenting increase in money supply, increasing imports and long delays in settlement at the central bank’s weekly currency auction, the Confederation of Zimbabwe Industries, the country’s largest business lobby group said last month.

Estimates show annual inflation will probably end the year at 52 percent to 58 percent, up from the revised target of 25 percent to 35 percent and average 32.6 percent in 2022, the minister said.

Zimbabwe’s external public debt is estimated at US$13.2 billion, Ncube said.

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Of that, us$5.45 billion is owed to bilateral creditors including the Paris Club and us$2.67 billion to multilateral lenders, such as the World Bank and African Development Bank, his budget statement showed.

The Treasury made payments to external creditors of US$44.2 million in the nine months through September.

The payments were made to active portfolios including Export–Import Bank of China and for token payments to international financial institutions and bilateral Paris Club creditors, Ncube said.

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Payments to active portfolios are crucial for the country to access fresh credit lines for on-going projects, he said. – Bloomberg

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National

Migration on the rise: Matabeleland North tops outbound movement in latest ZimLAC report

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BY NOKUTHABA DLAMINK

Matabeleland North has recorded some of the highest levels of migration in Zimbabwe, with 12.6% of households moving to urban areas and 7.8% leaving the country, according to the 2024–2025 Zimbabwe Livelihoods Assessment Committee (ZimLAC) report.

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The figures highlight a growing trend in which families are uprooting in search of work, education, and better living conditions, with the province’s migration rate well above the national averages of 9.9% for rural-to-urban moves and 5.0% for emigration.

For many in Matabeleland North, economic necessity drives these decisions.

“I had to send my son to Bulawayo because there was simply no work here,” said Thabani Ncube, a smallholder farmer in Lupane. “Even piece jobs have dried up. At least in town, he can hustle and maybe support the family.”

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The ZimLAC report shows that employment opportunities are the leading reason behind rural-to-urban migration nationally (6.3%). In Matabeleland North, 7.7% cited education as the next big pull factor, followed by new residential land and improved living standards.

Experts warn that while migration can bring relief through remittances, it also risks hollowing out rural communities.

“This trend is a double-edged sword,” explained Dr. Nomalanga Sibanda, a livelihoods researcher in Bulawayo. “Families may benefit from remittances, but local economies lose critical labour and skills. Over time, this weakens resilience in rural districts.”

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Other Provinces: Contrasting Patterns

Matabeleland South recorded the highest rate of emigration, with 13.5% of households reporting that members had left the country — nearly triple the national average. Masvingo followed closely, with 16.5% moving to towns and 7.7% leaving for the diaspora.

Meanwhile, Mashonaland Central had the lowest levels of outward movement, with just 4.4% moving to towns and 1.0% emigrating.

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Midlands also stood out, with 12.9% shifting to urban areas and 6.2% relocating abroad, driven mainly by job opportunities and schooling.

National Picture

Across Zimbabwe, nearly one in ten households (9.9%) reported rural-to-urban migration, while 5% indicated emigration outside the country. Employment, education, and improved living standards remain the strongest motivators.

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For ordinary families, the story is about survival and hope.

“My husband left for South Africa last year,” said Memory Dube of Gwanda, Matabeleland South. “He sends money when he can, but life is tough there too. Still, we rely on that income to buy food and pay school fees.”

ZimLAC, which advises the government through the Food and Nutrition Council (FNC), says the data will guide evidence-based interventions. The report stresses that migration trends are not just statistics, but reflect deeper issues of economic opportunity, resilience, and service delivery across provinces.

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National

Zimbabwe selected for groundbreaking HIV prevention initiative

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BY STAFF REPORTER 

The U.S. Embassy in Zimbabwe has announced an exciting development in the fight against HIV: Zimbabwe has been selected as one of the ten countries globally to roll out lenacapavir, a breakthrough in HIV prevention.

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“Yes Zimbabwe, it’s happening!” the embassy declared, highlighting the significance of this initiative.

“For decades, we’ve fought to turn the tide against this epidemic, and each day we get closer,” the statement continued. This new treatment represents a pivotal moment in HIV prevention efforts, as it is the first twice-yearly HIV prevention medicine.

The implementation of lenacapavir is made possible through a partnership with U.S.-based Gilead Sciences and the Global Fund. A key finding from a large-scale clinical trial shows that more than 99% of people on lenacapavir remained HIV negative. While this has the potential to save millions of lives, the Embassy emphasized that for Zimbabwe, it represents a major step toward ending new infections.

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“But this is more than medicine—it advances us on a pathway to a safer, stronger, and healthier future!” noted the embassy’s announcement.

The initiative particularly focuses on pregnant and breastfeeding women, aiming to protect the next generation. It will also work toward strengthening healthcare systems, empowering Zimbabwe to lead its own fight against HIV. Moreover, the goal of making lenacapavir more affordable and accessible ensures that no one is left behind.

The embassy highlighted, “This is American leadership at its best: driving innovation, and building a world where children, mothers, and communities can thrive.”

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As this initiative rolls out, the message is clear: “Together, we’re not just fighting HIV—we’re winning.”

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In the community

Avoid nightime movement and stoning elephants, communities told

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BY NOKUTHABA DLAMINI 

Following a recent spate of human-wildlife conflict incidents, Zimbabwe Parks and Wildlife Management Authority spokesperson Tinashe Farawo has urged communities to exercise caution when encountering wild animals.

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Farawo emphasized the importance of avoiding confrontations with elephants, particularly when they encroach into community areas. “We would like to urge members of the communities to avoid throwing stones at elephants,” he said. “This action agitates them, leading to attacks on people.”

In addition to avoiding confrontations, Farawo advised community members to minimize movement at night, as this is when wild animals are most active. “We would like to urge communities to avoid moving at night to minimize casualties,” he said.

Farawo’s comments come after a 79-year-old man from Hwange was killed by an elephant yesterday. The incident is still under investigation by rangers. This is the second fatal incident in the area, following the death of another man who was attacked by an elephant while on his way to work in Hwange town several weeks ago.

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