Boost for economic reforms
THE Government has come up with a number of policy reforms to steady the ship and ensure economic stability and success. What is pleasing is that the efforts have not gone unnoticed as they have received support from the international community which has expressed willingness to play a role in the country’s road to recovery. As a number of Government officials have said, the people of Zimbabwe must be patient and give support to the Government so that it can do its work to make this place a better place for all.
While we have witnessed wanton price distortions for basic commodities and services recently, the truth of the matter is that Government is on top of the situation and normalcy will return in no time. Those who have been increasing prices willy-nilly are simply greedy businesspeople since manufacturers did not increase prices of any products.
The good news is that the International Monetary Fund and the World Bank are backing Zimbabwe’s debt clearance strategy and the country’s two-year economic stabilisation plan. This was announced by Finance and Economic Development Minister Prof Mthuli Ncube while in Indonesia where he held a roundtable meeting with global lenders in Bali at the IMF/World Bank annual meetings to discuss a road map for clearing Zimbabwe’s choking $1,8 billion arrears last week. Clearing the arrears to the World Bank and the African Development Bank will help unlock new funding for the country that was stopped in 2000 after the country defaulted.
“It is also important to note that all the co-operating partners and creditors present, uniformly expressed their (support) for Zimbabwe and its arrears clearance roadmap, and that the meeting has been the best so far on Zimbabwe’s arrears clearance process,” said Minister Ncube in a statement.
The meeting, chaired by the World Bank, was also attended by The Paris Club, as well as bilateral partners such as Britain, the US, Australia, Netherlands and South Africa, among others.
Minister Ncube outlined the country’s turnaround strategy and the roadmap to achieve upper middle income economy by 2030 that was well received. These are centred on the policy reforms the Government of Zimbabwe is undertaking through Transitional Stabilisation Programme. The economic recovery programme is aimed at reducing public expenditure by restructuring the civil service currently consuming about 90 percent of the State revenues.
The plan will also prioritise the privatisation of State-owned companies. France has also expressed its support towards the arrears clearance and recovery plans, while encouraging the Paris Club Group of creditors to put their weight behind Zimbabwe’s plans. As President Mnangagwa has always said, Zimbabwe is poised for economic turnaround and the future is surely bright.