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Zimbabwe to more than double spending in 2023

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BY GODFREY MARAWANYIKA AND RAY NDLOVU

Zimbabwe provided the first details of how a new mineral royalty policy will be enforced, as the country considers more than doubling spending in 2023 to help revive an economy that exited a recession last year.

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The royalty policy that came into effect in October compels miners to pay half of their royalties in minerals and the rest in cash. The plan presented by Zimbabwean Finance Minister Mthuli Ncube on Thursday breaks the payment down to half in mineral form, 40% in local currency and 10% in foreign-currency cash.

Although traditionally, royalties are remitted in cash, it is pertinent that the current formulae be reviewed in line with government policy to preserve value and mitigate against revenue loss,” said Ncube.

The southern African nation has vast mineral resources including gold, diamonds and coal deposits. It has the world’s third-largest known platinum deposits after neighboring South Africa and Russia. Miners say they will comply with the new policy.

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Ncube projects total expenditure will more than double to 4.2 trillion Zimbabwe dollars ($6.5 billion) in the 2023 budget.

The bulk of the funds will be spent on social services and infrastructure projects, with a key focus on the mining, energy and agricultural sectors to stimulate economic growth, he said in a budget presentation to lawmakers at the new Chinese-built Parliament in Mount Hampden, 23 kilometers (14 miles) north of the capital, Harare.

Economic growth globally is being crimped by tightening financial conditions as central bankers including Zimbabwe’s try to temper high inflation, adding to the damage from the war in Ukraine and China’s slowdown.

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Zimbabwe’s benchmark interest rate is at 200%, while annual inflation is at 269%.

The IMF last month cut its forecast for global growth next year to 2.7%, from 2.9% and sees Zimbabwe’s economy expanding at 2.8%.

Other highlights

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Ncube expects Z$3.9 trillion in revenue.

Plans to increase value-added tax to 15% from 14.5% from Jan 1

Allocates Z$76 billion  toward next year’s general elections, in which President Emmerson Mnangagwa is seeking re-election

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Budget deficit to GDP is forecast at 1.5%

To plug the funding gap, the government plans a bond issuance on the Victoria Falls Stock Exchange

Offers tax relief measures including cutting an electronic tax levied on US dollar transactions to 2% from 4%-Bloomberg 

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National

Zimbabwe approves US$92 million Victoria Falls infrastructure deal

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BY WANDILE TSHUMA

The government has greenlit a major public-private partnership (PPP) to develop critical bulk infrastructure within the Masuwe Special Economic Zone (MSEZ), a move aimed at transforming Victoria Falls into a premier international hub for finance and tourism.

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The project, approved during the Tuesday cabinet meeting, establishes a commercial joint venture (CJV) between the state-owned Mosi Oa Tunya Development Company (MTDC) and the JR Goddard (JRG) Consortium.

According to the government briefing, the MSEZ is a “flagship national development project” established to “transform Victoria Falls into a diversified, high-value hub integrating tourism, financial services and sustainable real estate”.

Under the terms of the agreement, the JRG Consortium—which includes JR Goddard Pvt Ltd, Sesani Pvt Ltd, Stewart Scott Zimbabwe Pvt Ltd, and GGF Africa Pvt Ltd—will provide funding of US25.6 million.

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This arrangement results in a shareholding structure of 39% for MTDC and 61% for the JR Goddard Consortium.

The infrastructure roadmap for the 1 200-hectare site is extensive. Planned works include the surfacing of 8 km of internal roads, the upgrading of 9 km of existing gravel roads, and the construction of a 13 km water pipeline designed to serve both the economic zone and neighbouring communities.

Additional developments will feature a package water treatment plant, a sewerage reticulation system, a power sub-station, and effluent re-use storage ponds.

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Cabinet said the project was subjected to a “rigorous evaluation” in compliance with the Zimbabwe Investment and Development Agency (ZIDA) Act.

Officials believe the partnership will “catalyse high-value investment” and provide a “sustainable fiscal contribution to gross domestic product (GDP)” while creating downstream jobs.

The government said the project is expected to “catapult the transformation of Victoria Falls into a modern and vibrant economic development city, fulfilling the attainment of Vision 2030”.

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The joint venture includes a 25-year structured profit recoup period and will be overseen by a board chaired by the MTDC to ensure alignment with the country’s National Development Strategy 2.

Located within the Kavango-Zambezi Transfrontier Conservation Area (KAZA-TfCA), the Masuwedevelopment is seen as a strategic pivot for Zimbabwe to diversify its tourism-dependent economy into a more robust financial services and real estate centre.

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Nkayi

Burial preparations underway for Nkayi well tragedy victims

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BY NOKUTHABA DLAMINI 

The Nkayi community is preparing to lay to rest the Grade 2 pupil and his neighbor who tragically died in a gas-filled well in Ward 19 last week.

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According to Ward 19 Councillor Thubelihle Mabuza Ncube, the young Grade 2 boy is scheduled to be laid to rest today, while the other deceased individual will be buried tomorrow. The community is currently awaiting the arrival of the bodies from the Nkayi regional mortuary. The remains were recently delivered back to the regional mortuary following the completion of postmortem examinations in Bulawayo.

The double fatality occurred when the young student was reportedly lured into a neighbor’s well by an elder to retrieve a bucket in exchange for sweets. The child was quickly overcome by suspected carbon monoxide and a total lack of oxygen. A neighbor who entered the shaft in a desperate rescue attempt also perished after being overwhelmed by the toxic air.

Due to the hazardous conditions within the well, rescuers were unable to enter the shaft and had to use a makeshift wire tool to retrieve the bodies from the surface. Councillor Ncube previously expressed deep distress over the incident, noting that Nkayi is hurting deeply.

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While the community mourns, legal proceedings are also in motion. The councillor has indicated that the accused in the matter has been charged by the police. This update follows a series of tragic events in the Nkayi district, including a recent fatal elephant attack in Ward 13.

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Binga

Poet’s pen turns to philanthropy: Obert Dube’s mission to clothe and educate Zimbabwe’s youth

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BY NOKUTHABA DLAMINI

For Obert Dube, a renowned African poet, the stage is no longer just a place for performance; it has become a platform for a massive humanitarian effort aimed at Zimbabwe’s most vulnerable children. Since November, Dube has traversed the rugged terrains of Matabeleland North and South, visiting over 100 schools to provide essential supplies to students who, much like his younger self, are struggling to stay in the classroom.

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Obert Dube

Dube, who describes himself as an “African poet… born and bred in Zimbabwe,” has dedicated his career to what he calls a “mission of mercy.” His work focuses on children who are often forced to drop out due to a lack of school fees or basic stationery. “I’m an African poet… a philanthropist engaged in a special mission,” Dube said in a recent interview. “I help vulnerable children… who sometimes fail due to school fees. Some approach me for help with registering for examinations.”

The poet’s motivation is deeply rooted in his own childhood trauma. Raised by a widowed mother who passed away before his final exams, Dube became a “child parent” at a young age. He recalls the humiliation of attending school in borrowed uniforms and the struggle of trying to learn without the most basic tools. “I remember some raised by elderly grandparents… their parents are passed on,” Dube explained, noting that many guardians cannot afford books. “They will spend the rest of the time at school without writing, and that is what is contributing to low pass rates.”

To fund this initiative, Dube allocates 30 percent of his earnings from every performance to purchase stationery and pay school fees. His reach has expanded to districts including Nkayi, Binga, Lupane, and Hwange. While he started alone, his social media presence has attracted global support, including a Zimbabwean-born UK citizen who recently donated football kits for the schools. “This is a different thing collectively that builds helping our own communities,” Dube said.

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