Bullish Mthuli sticks to working formula

by | Jul 30, 2021 | Business | 0 comments


Hosia Mviringi

Typical of a man whose vision is clear, Zimbabwe’s Finance Minister Professor Mthuli Ncube has reaffirmed his firm belief and faith in the path the government has chosen and the goals it is currently pursuing in search of economic glory.

He has stuck to his guns, which are now firing from all cylinders a sign that Government intends to consolidate gains being recorded on the economic front.

Presenting the Mid-Term Fiscal policy statement on Thursday July 29, 2021, Professor Ncube surprised both critics and admirers when he presented a flat policy review, emphasizing the need to keep the foot on the pedal and eyes on the road ahead.

There is not an iota of doubt as to his level of satisfaction and conviction with the current economic trajectory which has won him, pundits, from such organisations as the International Monetary Fund and critical economic news publications as Bloomberg.

“There is a need to stay the course. There are no policy changes as I believe the existing policies are achieving the desired results and are still adequate. We only need to stay the course, and any substantial policy that will be introduced through the 2022 National budget,” said Professor Ncube in remarks.

His satisfaction derives from the apparent on-target projections in areas such as revenue collections, which so to date have exceeded targets, and the ability by line Ministries to keep within their budgetary votes.

The current sigh of relief by the treasury chief is to a greater extent a product of a satisfactory agricultural season that yielded a bumper harvest of staple grains which effectively eliminated grain import pressure from the fiscus.

“In terms of votes performance, disbursements to line Ministries, Departments and Agencies were generally in line with planned and budgeted programmes and projects, save for unforeseen but essential developments, particularly those meant to save and cushion lives against the pandemic,” he continued.

Food self self-sufficiency contributed to a reconfiguration of the country’s balance of payment situation.

“Despite a raging global pandemic, implementation of the National Development Strategy 1 (NDS1) through the 2021 National budget remains on course, following a favourable farming season, recovery in the manufacturing sector and firming international commodity prices”.

“As at July 26, 2021, grain deliveries by farmers to the Grain Marketing Board (GMB) depots stood at 636,884 tons valued at ZWL$20.9 billion, of which 566,751 tons are for maize while 58,212 tons are small grains and Soya beans and wheat account for 11,260 and 661 tones respectively,” said Minister Ncube.



The country adopted robust revenue collection initiatives which saw collections exceed projections in the half year period to June 2021.

Excess revenue collections were instrumental in offsetting some unforeseen and unbudgeted expenditures, which came as a result of prolonged lockdown which unavoidably demanded extra social interventions to save vulnerable communities.

“Social benefits and subsidies stood at ZWL$14.5 billion and ZWL$2.9 billion against half year targets of ZW$6.1 billion and ZWL$1.4 billion respectively,” Minister Ncube said.


” Cumulative revenue collections for the period January to June 2021 amounted to ZWL$198.2 billion against a target of ZWK$182.1 billion, resulting in a positive the variance of ZWL$16 billion or 8.8 per cent. This positive performance was attributed to both tax and non-tax revenues, which were above targets by 5.3 per cent and 392 per respectively”.


At 23 per cent Value, Added Tax contributed the highest of all revenue heads.

This is a reflection of firming local consumption patterns which is a good indicator of the revival of the local manufacturing industry.

One positive derivative of prolonged lockdown is the rising inward-looking attitude by the local market. The need for import substitution and a stable local currency has been the strength of the local economy to date and Professor Ncube believes that the trend can be sustained going forward.

In a declaration of confidence, and riding on the success scored so far, Professor Ncube revised his economic growth projection from a modest 7.4 percent to a remarkable 7.8 percent.

Quoting his now popular signature on social media, #Zvakarongeka, meaning all is in order, the nation can rest assured that all is under control.