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Key takeaways from Mthuli Ncube’s play-it-safe budget review

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Finance minister Mthuli Ncube played it safe in his mid-term budget review statement on Thursday, making no major policy decisions and saying he may not need additional funding for his 2021 budget.

After many previous policy shocks, the best part about a largely uneventful budget statement was exactly that; it was uneventful. There were no major announcements on taxation, the currency, or any measures likely to shake tables immediately.

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“There is need to stay the course. There are no policy changes; I believe the existing policies are achieving the desired results are still adequate,” Ncube said. If any big budget changes are to made, those would come in the 2022 budget, he said.

Here is a summary of some of the main takeaways from Ncube’s statement:

Economic Growth: More ambitious target set

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Ncube’s prediction of 7.4% growth for 2021 was already ambitious, so much that even President Emmerson Mnangagwa thought it must be revised downwards. But Ncube is even more confident. He now sees the economy growing by 7.8%, higher than his initial expectation of 7.4%.

His predictions are far higher than the IMF’s projection of 6% and the World Bank’s 3.9% forecast. They also contrast sentiment from major local companies, many of which are tempering their confidence of a rebound with caution over the likely impact of COVID-19.

Why is Ncube so confident? He cites “rainfall season, higher international commodity prices, stable macroeconomic environment and a managed COVID-19 pandemic.”

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Ncube says agriculture will this year grow faster than expected. It will grow by 34%, higher than the initially predicted 11%. He bases this on output from key farm segments, such as maize production.

The finance minister is also counting on the base effect of GDP contraction in 2020, when the economy shrank by 4%. For 2022, Ncube expects the economy to expand by 5.4%

He sees year-on-year inflation slowing down to between 22% and 35% by December 2021.

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Vaccine procurement: More spending needed

Ncube said COVID-19 vaccines that have been bought so far have been purchased “utilising the savings from last year, in the main.”

But, to achieve Zimbabwe’s target of 60% of the population, the vaccination campaign will require “mobilisation of additional resources for the procurement of more vaccines, over and above the US$100m resource envelope.”

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Ncube laid out what he has spent so far on the programme. To date, 11.8m doses and 7.2m syringes have been purchased using US$93.2 million.

No extra budget needed, for now

Ncube has stayed away from asking for more money from Parliament. Unless there is a major shock, he says, there will be no need for a supplementary budget this year.

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He said: “In the outlook to December 2021, expenditure target of ZWL$421.6 billion will be maintained assuming continued containment of expenditures, save for exigencies managed through reallocations, where necessary.”

So far this year, the Government has managed to live within its means. The government raised an estimated Z$198.2 billion in revenues between January and June and spent Z$197.6 billion.

Diaspora’s support for economy keeps growing

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During the first six months of the year, Zimbabweans living abroad sent home a total of US$746.9 million. Over the same time last year, they sent US$288.7 million. Remittances are projected to reach US$1.3 billion by year end, Ncube said.

The contribution of Diaspora remittances to the economy is growing.

“Diaspora remittances and other transfers, which constitute the secondary income account, are projected to continue driving the current account balance as was the case in 2020. Personal transfers from Zimbabweans in the Diaspora are expected to remain steady and resilient as the economies in key source markets recover from the Covid-19 induced slow-down, allowing them invest in assets back home.”

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Sold: Gold refinery

In December, Ncube announced that the government was privatising Fidelity Printers and Refineries. This is the company that refines and exports gold. Gold producers would control 60% of Fidelity, with central bank keeping 40%.

Ncube has now announced that this deal is now done. Ten miners have agreed to buy the 60% for US$49 million. This will be the first time that the refinery will be in private hands since it was established in 1988.

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While Ncube did not name the ten miners, a structure announced last year said participation would be based on average gold sales over the previous three years. This means among the potential will be the biggest gold producers, such as Kuvimba’s Freda Rebecca, which is now the number one producer, as well as Caledonia Mining, which runs Blanket, and RioZim. – newZwire

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Police Hunt For A Nkayi Murder Fugitive

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BY STAFF REPORTER 

A Nkayi man is reportedly on the run after allegedly assaulting a fellow villager with an unknown object on the head on New Year’s Day. 

Police have identified the fugitive at Joinisa Tshuma from Dabe village who is being sought for a murder charge. 

“ZRP is appealing for information which may lead to the arrest of Joinisa Tshuma who is being sought in connection with a case of murder in which Mcebisi Moyo died on 07/01/24,” police appealed. 

“The suspect allegedly assaulted the victim on the head with an unknown object near a bush in Dabe Village, Nkayi on 01/01/24 before he fled the scene.”

According to police, the victim sustained some head injuries and he was admitted at Nkayi District Hospital where he succumbed to the injuries.

Meanwhile, Police in Machipisa are also  investigating a case of murder which occurred on Wednesday, in which a yet to be identified male adult approximately aged 30 years who was wearing a yellow t-shirt, black trousers, black gum boots and a black cap, was found lying dead with a stab wound on the back near Mapuranga Transport Service Garage in Harare. 

Police are also appealing to the public with information surrounding the incident. 

“Anyone with information to report at any nearest Police Station.” 

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Full ZRP Statement on Armed Robberies Raiding Elite Schools 

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As the schools open, parents and guardians are in the process of paying school fees, levies and other related school costs, for their children.

School authorities are therefore urged to deposit all monies at financial institutions to curb armed robbery cases.

The issue of collecting cash by school authorities at schools should be reconsidered given the recent armed robbery cases.

The Police has recorded armed robbery cases in Bulawayo and Chinhoyi in which schools are being targeted.

In one of the cases, unknown suspects pounced at George Silundika High School at corner George Silundika Street and Third Avenue, Bulawayo on 06th January 2024, where they stole US$17 280.00 cash which was in a cash box.

In another case which occurred at Lomagundi College, Chinhoyi on 09th January 2024, 12 unknown suspects attacked security guards before stealing an undisclosed amount of cash, a Mazda Tribute motor vehicle, cellphones and laptops, among other valuables.

School authorities are urged to step up security measures at schools and employ guards from reputable security service providers who constantly monitor and review deployments.

Above all, school authorities should install CCTV at points of entry and administration offices.

The Zimbabwe Republic Police is concerned that some of these robbery cases are resulting from leakage of information.

Members of the public are warned that those who provide inside information to robbery syndicates will be arrested.

Police crack teams are firm on the ground and will pounce on armed robbery syndicates for the law to take its course in earnest.

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ARTUZ condemns government for opening of school amid Cholera outbreak

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BY NOKUTHABA DLAMINI 

The Amalgamated Rural Teachers Union of Zimbabwe (ARTUZ) has condemned the government’s decision to reopen schools due to the cholera outbreak wreaking havoc in most parts of the country, labeling the move reckless and disregarding the pressing concerns raised by parents and teachers. 

Statistics released by the Ministry of Health and Child Care last week showed since the outbreak of cholera, Zimbabwe has recorded 15 137 suspected cholera cases, 1 759 confirmed cases, 14 578 recoveries, 67 confirmed deaths and 266 suspected deaths.

“We vehemently condemn the government’s reckless decision to open schools amidst the widespread cholera outbreak, completely disregarding the pressing concerns raised by parents and teachers,” reads the statement.

“We demand that the government immediately mobilize substantial resources to ensure the safe reopening of schools because our children deserve nothing less than a secure and conducive learning environment. 

“It is the duty of the government to provide sanitary solutions and ensure the safety and well-being of our children.

The union also called on the government to consider an upward increment of teachers’ salaries, criticizing the government’s lack of engagement with educators, particularly regarding their ongoing demand for a US$1 260 salary.

“Also, it is utterly disappointing to witness such a hasty move without even bothering to engage with the educators who have been tirelessly advocating for a just salary of US$1260.

“The safety and welfare of our students and teachers should be the utmost priority, but it seems that the government is callously neglecting this responsibility.

“It is high time for the government to prioritize the well-being of our education system and take meaningful action to address the urgent needs of our dedicated teachers. ” 

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