Hosia Mviringi
The Zimbabwean economy is projected to hit the streak along the growth trajectory in 2022, putting a remarkable 5.4 percent expansion.
Presenting the 2022 Budget Strategy Paper before Cabinet in Harare yesterday July 20, 2021, Finance and Economic Development Minister Professor Mthuli Ncube was bullish, declaring 2022 as another year of remarkable economic growth.
The country is aiming to recover lost ground due to sanctions and natural disasters such as drought and cyclones.
The envisaged growth will be anchored mostly on success in the agriculture sector, manufacturing, mining, tourism and electricity generation among other economic drivers.
“Government revenue is expected to improve from 16.4 per cent (ZWL$390.8 billion) of Gross Domestic Product (GDP) in 2021 to 17.8 per cent (ZWL$533.2 billion) in 2022, while expenditure will increase to 19.4 per cent (ZWL$571.1 billion) of GDP from 18.2 per cent (ZWL$421.6 billion) in 2021,” said Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa, in a post Cabinet media brief.
In his report to Cabinet, Professor Mthuli Ncube highlighted priority economic areas for 2022 which are expected to play a defining role towards attaining the set growth targets.
Such areas include among other things, Developing and Supporting productive value chains, inclusive growth and macro-economic stability, optimising value in natural resources ( value addition to minerals and other natural resources), infrastructure, ICTs, and digital economy, social protection (optimisation of social safety nets) and human capital development.
The Finance Minister has defied critics and projected a gigantic 7.4 per cent growth for the economy in 2021.
At this rate, Zimbabwe will outpace the majority of economies in Africa in defiance of the challenge posed by the Covid-19 pandemic. The current stability and growth being experienced is mainly a result of fiscal and monetary discipline adopted and exhibited during the financial year under review.
In mid-June this year, the International Monetary Fund (IMF) country office for Zimbabwe doubled its growth projection from an initial 3.1 per cent to 6 pre cent citing a stable currency and a bumper harvest in the current agricultural season.
In its report, the Breton Woods institution lauded the currency auction system as a sign of policies heading the right direction.
Government has kept its word so far, by living within its means by minimising borrowings while at the same time keeping money supply growth in check.
This has contributed to heightened confidence in the economy in response to a stable currency and receding inflationary pressures.
Treasury has managed to fund such major infrastructure projects as road and dam construction using internally generated resources.
Government has successfully funded the current agricultural revolution using local resources from central government and private sector players.
This is in adherence and fulfilment of goals as espoused in the National Development Strategy 1 template which seeks to steer the nation towards an Inclusive and prosperous middle-income economy by,2030.
Finance Minister Mthuli Ncube will on Thursday July 22, 2021 present his 2021 Mid-Term Fiscal Policy and Economic Review before Parliament.
He is expected to share details of his view of the economic outlook for the rest of the year going into 2022.
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