Here is how Government is going to use the IMF SDR payout

by | Aug 30, 2021 | Business | 0 comments

Nevanji Munyaradzi Chiondegwa

Zimbabwe will use the US$ 961 million it received from the International Monetary Fund prudently, as the country has committed to channel it towards social services, productive sectors, macroeconomic stability as it aims for transparency and accountability in line with the IMF guidance code.

Finance and Economic Development Minister Professor Mthuli Ncube said the funds will be used in the following ways:

Health Sector

Zimbabwe is one of the top African countries in Covid-19 Vaccine procurement and rollout.
Part of the funds from the IMF will be channelled towards to the procurement of more vaccines as Zimbabwe aims to achieve head immunity.
Professor Ncube also said that funds will be directed towards the upgrading of critical hospital infrastructure, especially central hospitals.
He said Government will be investing in hospitals across the country through purchasing of new equipment.

Education Sector

Government aims to build eight new boarding schools in rural areas, building about one school per rural province. These boarding schools are vital to delivering education and a better quality of life for rural children in particular for low-income groups. The boarding schools and other existing schools will be equipped, with state-of-the-art solar power facilities to back up power from the normal grid power.
Social Welfare

Some of the funds will be directed towards the most vulnerable members of society to cushion them against the hardships induced by the coronavirus.

The able-bodied will benefit through cash/food for Work Schemes. There will also be a scheme for the elderly and disabled who perhaps are unable or can no longer integrate into the workforce.

Mining sector

In Zimbabwe, small-scale producers produce about 60% of the gold. Most of these small scale miners are youths. Government will invest in at least 10 “Gold Centres” across the country. Each of these gold centres will be a one-stop shop, which will allow the miner to have access to equipment and transportation and a regulated mechanism through which they can get paid.

This will allow a more transparent process for the purchasers of the gold, improving the Know Your Customer (KYC) process, a potential impediment to sector growth.

Infrastructure Development

The main target will be roads and housing. Of the roads, only those with the potential to give good returns will be targeted, they will develop roads in areas with potential for tourism, or for agricultural sector development.


The Minister said that, the country must continue to build foreign currency reserves to support the domestic currency which has performed so valiantly thus far.

Setting aside resources to buttress the currency can ensure that the downward trend in inflation is maintained.


There are three targeted sectors under growth and these are Agriculture, Industry/manufacturing and Mining.


Government is aiming at investment in efficiency, technology, and improving yields. There will also be a “Revolving Fund”, which will support Floriculture: targeting flowers, blueberries, and macadamia, among other cash crops or water culture crops. These tend to be export crops with a decent return on investment. Profits can then be used to repay debts and further invest in the most advanced techniques and technologies. Also targeted are smallholder irrigation schemes to again support vulnerable farmers with movement of water from dams to farms.


The Minister has said that there shall be a ‘Re-tooling fund’ which will enhance value chains around cotton, leather, pharmaceuticals and agro-processing. The idea with both the agricultural sector and industry is to leverage private sector funds. With SDRs in the background providing a form of guarantee, a private sector bank can extend the financing facility to a company that has been identified as a value chain enhancer.