Fiscal and Monetary Policies lauded

by | Aug 11, 2021 | Business | 0 comments

Nevanji Munyaradzi Chiondegwa


The harmony in the recently published mid-term budget pronouncements (fiscal policy) and the monetary policies have received praise from the Grain Millers Association of Zimbabwe for complementing each other.


The grain milling industry as one of the key anchor sectors in national food security and nutrition matrix, welcomed both the 2021 the Mid Term Budget by the Hon Minister of Finance, Professor Mthuli Ncube and the 2021 Mid-term Monetary Statement by the Reserve Bank Governor, Dr John Mangudya.


“We note with satisfaction that there is complementarity by the two statements towards consolidating and sustaining price and exchange rate stability. The two policies exposes the Government’s continued strenuous efforts in maintaining fiscal discipline and tight monetary

conditions towards achieving macroeconomic stability.


The expected 7.8% GDP growth in 2021 against the economic headwinds fermented by negative COVID-19 economic impact, attests to a bbuoyant economy manifesting,” read the statement signed by the Chairman of GMAZ, Tafadzwa Musarara.


The statement also alluded to the the positive comments and acknowledgements by the International Monetary Fund and World Bank on the country’s key economic indicators saying that the comments testifies to prudent economic practices by President Emerson Mnangagwa’s government.


The GMAZ also had praises for the Agricultural policies and the results by saying, “We are further thrilled by the current bumper grain harvest, particularly maize, which way exceeds the national requirement.The management of the same by government,in partnership with private sector, confirms to international best practices being executed to reward farmers and replicate the same bumper harvest in the forthcoming seasons,”


The partnership between Government and private sector which Government has been actively pursuing to enable players in the industry to get involved in the value chain was prasised too.


“Judging from the hard work done so far by Government and Private Sector, we look forward to good winter crop harvest.The combination of the two will sustain the current sufficient national supply levels and price stability in the meat, dairy and other related industries.”


Writer’s Note:

The fiscal discipline and tight money controls introduced by both Ministry of Finance and Economic Development and the Reserve Bank of Zimbabwe has seen a record plunge in the inflation from a high of over 837% to a double 56% as per last released figures. The fall in inflation, the boost in local industrial capacity, agricultural production, have all contributed to steadying the currency and also prices of commodities. This has also seen an increase in savings and contributed to growth of GDP.