DOCSLIB.ORG

The 2021 National Budget Statement

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The 2021 National Budget Statement ZIMBABWE THE 2021 NATIONAL BUDGET STATEMENT ‘Building Resilience and Sustainable Economic Recovery’ Presented to the Parliament of Zimbabwe On November 26, 2020 By Hon. Prof. Mthuli Ncube, Minister of Finance and Economic Development Harare 1 1 2 Table of Contents INTRODUCTION .......................................................................................................................7 GLOBAL AND REGIONAL OUTLOOK ..................................................................................13 OVERVIEW OF THE DOMESTIC ECONOMY ........................................................................22 Economic Developments ................................................................................................22 GDP Growth and Outlook .............................................................................................27 Inflation ........................................................................................................................29 Exchange Rate .................................................................................................................31 Balance of Payments ......................................................................................................33 Financial Sector ...............................................................................................................35 BUDGET PERFORMANCE AND OUTLOOK ..................................................................41 Revenues .........................................................................................................................42 Expenditures ....................................................................................................................43 Budget Balance and Financing ........................................................................................44 Public Debt .......................................................................................................................45 Domestic Debt ...............................................................................................................46 External Debt .................................................................................................................47 MACRO- FISCAL FRAMEWORK: 2021-23 .....................................................................50 THE 2021 BUDGET .........................................................................................................55 Development Partner Support ..........................................................................................55 THE 2021 BUDGET PRIORITY AREAS .........................................................................61 I. INCLUSIVE GROWTH AND MACRO-STABILITY ..............................................................61 Fiscal Policy ....................................................................................................................62 Monetary Policy ...............................................................................................................70 II. DEVELOPING AND SUPPORTING PRODUCTIVE VALUE CHAINS ................................74 Agriculture ........................................................................................................................74 Access and Timely Financing Arrangements ..............................................................75 Mitigating Against Climatic Change .............................................................................79 Guaranteeing Viability and Competitiveness of Farming Business..........................85 Marketing Systems and Infrastructure ........................................................................88 Protecting the Environment for Sustainability of the Sector .....................................91 Livestock .........................................................................................................................93 Food Imports ..................................................................................................................96 Industrialisation ...............................................................................................................98 3 Medium-Term Bank Accommodation Facility ...........................................................100 Competitiveness and Investment Attraction ...........................................................100 Zimbabwe Investment Development Agency ............................................................101 Value Chains .................................................................................................................101 Buy Zimbabwe Campaign ..........................................................................................103 Ziscosteel Revival ........................................................................................................104 Exports Promotion ......................................................................................................105 Research and Development ........................................................................................106 Industrial Upgrading ...................................................................................................107 Empowerment Initiatives .............................................................................................107 Jobs Creation/Industry Regeneration and New Enterprises ...................................107 National Venture Capital Fund ....................................................................................108 SMEs, Youths and Women ..........................................................................................109 Capacitation of the Sovereign Wealth Fund .............................................................. 110 Sport, Arts and Recreation ......................................................................................... 111 III. OPTIMISING THE VALUE OF OUR NATURAL RESOURCES ....................................... 112 Mining ............................................................................................................................ 112 Tourism .......................................................................................................................... 118 I. INFRASTRUCTURE, ICT AND THE DIGITAL ECONOMY ..............................................122 Transport ........................................................................................................................124 Road Fund ....................................................................................................................127 Rail .................................................................................................................................128 Aviation ..........................................................................................................................129 Border Posts .................................................................................................................131 Water Supply and Sanitation ..........................................................................................132 Dam Projects ................................................................................................................133 Urban Water and Sanitation .......................................................................................135 Water Supply Schemes for Small Towns and Growth Points ..................................136 Rural WASH ..................................................................................................................138 Energy ............................................................................................................................139 Digital Economy ............................................................................................................141 Devolution ......................................................................................................................143 Housing Development ....................................................................................................145 II. HUMAN CAPITAL DEVELOPMENT, WELL-BEING AND SOCIAL PROTECTION ....147 Healthcare .....................................................................................................................147 4 Higher Education ...........................................................................................................152 Basic Education ............................................................................................................154 Social Protection ...........................................................................................................159 Child Protection .............................................................................................................160 Peace and Security .......................................................................................................160 War Veterans ..................................................................................................................161 III EFFECTIVE INSTITUTIONS BUILDING AND GOVERNANCE ...................................161 Social Contract ...............................................................................................................161 State Owned Enterprises ..............................................................................................162 Implementation, Monitoring and Reporting ....................................................................167
Load more

Recommended publications
  • The 2020 National Budget Speech
    Embargoed till end of delivery ZIMBABWE THE 2020 NATIONAL BUDGET SPEECH “Gearing for Higher Productivity, Growth and Job Creation” Presented to the Parliament of Zimbabwe on November 14, 2019 By The Hon. Prof. Mthuli Ncube Minister of Finance & Economic Development MOTION 1. Mr Speaker Sir, I move that leave be granted to present a Statement of the Estimated Revenues and Expenditures of the Republic of Zimbabwe for the 2020 Financial Year and to make Provisions for matters ancillary and incidental to this purpose. INTRODUCTION 2. Mr Speaker Sir, allow me to start by thanking the President –His Excellency, E. D. Mnangagwa, and the Honourable Vice Presidents, Cde Kembo Mohadi and Cde Constantino Chiwenga, for their valuable leadership and guidance as we advance the necessary reforms geared towards achieving Vision 2030. The President’s vision and political will has facilitated the implementation of a number of bold policy measures, under a challenging economic environment. This was clear from the State of the Nation Address by His Excellency on 1 October 2019. 3. Concurrently, I wish to appreciate the cooperation and contributions received from my colleagues, Honourable Ministers in Cabinet and look forward to their continued engagement as we implement this 2020 Budget. 3 4. Mr Speaker Sir, allow me to also express my indebtedness for the support I have received from this August House through its oversight functions. In particular, I have benefited immensely from the contributions of the Budget, Finance and Investment Portfolio Committee, Public Accounts Committee as well as other Portfolio Committees. 5. The recent engagement with all the Portfolio Committees of this August House during the 2020 Parliamentary Pre Budget Seminar, held in Victoria Falls over the period 31st October – 3rd November, 2019, facilitated very useful in-depth discussions and recommendations.
    [Show full text]
  • How South Africa Can Nudge Zimbabwe Toward Stability
    How South Africa Can Nudge Zimbabwe toward Stability Crisis Group Africa Briefing N°164 Johannesburg/Nairobi/Brussels, 17 December 2020 What’s new? As Zimbabwe’s political and economic crises worsen, South Africa is moving beyond its policy of “quiet diplomacy” with its northern neighbour and apply- ing more pressure on Harare to open up political space and reform its economy. Why does it matter? With Zimbabwe’s people slipping further into destitution, crackdowns fostering a growing sense of grievance within the opposition, and politi- cal divisions pitting ruling-party members against one another, the country could tip into even greater crisis through mass unrest or another coup. What should be done? Pretoria should press Harare to halt repression and start dialogue with the political opposition to address Zimbabwe’s economic woes. It should work with Washington on a roadmap for reforms that the U.S. and others can use to guide decisions on reversing sanctions and supporting debt relief for Zimbabwe. I. Overview Three years after a coup ended Robert Mugabe’s rule, the situation in Zimbabwe has gone from bad to worse, as political tensions mount, the economy falls apart and the population faces hunger and COVID-19. Having signalled a desire to stabilise the economy and ease repression, President Emmerson Mnangagwa has disappointed. The state is arresting opponents who protest government corruption and incompe- tence. Meanwhile, government-allied businessmen are tightening their grip on what is left of the economy, while citizens cope with austerity measures and soaring infla- tion. Violence and lawlessness are on the rise.
    [Show full text]
  • Zimbabwe Democracy Institute (Zdi) Access to Public Health
    ZIMBABWE DEMOCRACY INSTITUTE (ZDI) ACCESS TO PUBLIC HEALTH MONTHLY MONITORING REPORT AUGUST 2021 ABUSE OF COVID-19 FUNDS: A CASE OF A PANDEMIC IN A PANDEMIC Source: ZDI 2021, Dataset from Ministry of Health and Child Care Covid-19 daily Situation Reports, 26/08/2021 About the Zimbabwe Democracy Institute (ZDI) The Zimbabwe Democracy Institute (ZDI) is a politically independent and not for profit public policy think-tank based in Zimbabwe. Founded and registered as a trust in terms of the laws of Zimbabwe in November 2012, ZDI serves to generate and disseminate innovative ideas, cutting-edge research and policy analysis to advance democracy, development, good governance and human rights in Zimbabwe. The institute also aims to promote open, informed and evidence-based debate by bringing together pro-democracy experts to platforms for debate. The idea is to offer new ideas to policy makers with the view to entrenching democratic practices in Zimbabwe. The ZDI researches, publishes and conducts national policy debates and conferences in democratization, good governance, public policy, human rights and transitional justice, media and democracy relations, electoral politics and international affairs. nd Zimbabwe Democracy Institute (ZDI) - 66 Jason Moyo Avenue, 2 Floor Bothwell House, Harare, Zimbabwe Introduction 2021, Covid-19 infections in Zimbabwe stood at 108 860 and deaths were 3 532.1 From this date The month of August 2021 saw the Auditor to 26 August 2021, Zimbabwe sustained a 13.8% General’s latest special audit report on the increase in infection as it stood at 123 986 financial management and utilization of public infections2.
    [Show full text]
  • August 8, 2020 Issue of the Continent
    African journalism. August 8 2020 ISSUE NO. 15 The Continent with EXCLUSIVE Are American commandos operating in your country? Photo: AFRICOM The Continent ISSUE 15. August 8 2020 Page 2 Inside: Breaking the COVER STORY: Inside the secret world of US language barrier commandos in Africa (p20) This week, The Continent is publishing Cameroon: Why are all the our first story in a language that tomatoes rotting on the is not a colonial import. We’ve vine? (p8) translated Ranga Mberi’s powerful Mutapi wenhau akasungwa essay on Hopewell Chin’ono’s imprisonment into Shona, to make it anoratidza kuora moyo kwaita more accessible for our Zimbabwean Zimbabwe (p12) audience. (Ndebele speakers, we Jailed journalist is a symbol of haven’t forgotten about you – we’re a disillusioned Zimbabwe (p16) working on it, promise!) Expect to see Investigation: How dodgy arms more languages reflected in these dealers skimmed $137-million pages in the coming months. from Niger’s budget (p29) Putting the con in consequences: Ace Magashule, secretary-general of South Africa’s ruling African National Congress party, has been criticised for failing to take action against party members implicated in Covid-related corruption. The Continent Page 3 ISSUE 15. August 8 2020 Continental Drift In the headlines this week Samira Sawlani Uganda, Côte d’Ivoire and Guinea Uganda’s ruling party has endorsed President Yoweri Museveni as its candidate for next year’s election. Should he win, this would be the 75-year-old’s sixth term. Meanwhile, the prez has released a workout video in which he drops for no fewer than 40 push-ups.
    [Show full text]
  • Digital Rights in Zimbabwe
    Digital Rights in Zimbabwe, UPR Submission, Session 40 Submitted by: Media Institute of Southern Africa (MISA) Zimbabwe Chapter, Small Media, Collaboration on International ICT Policy for East and Southern Africa (CIPESA) Supported by: Access Now, Paradigm Initiative, Zimbabwe Human Rights Association, Association for Progressive Communication (APC), Zimbabwe Lawyers for Human Rights, Zimbabwe Centre for Media and Information Literacy (ZCMIL), Media Alliance of Zimbabwe. Introduction 1. Digital rights and freedoms should be accorded the same protection as offline rights and freedoms.1 Protection of freedom of expression, access to information, data protection and privacy have been guaranteed in international and regional instruments to which Zimbabwe is a party. Consequently, they must be considered in the recommendations made to Zimbabwe during the third cycle of the UPR. 2. During the second cycle of the UPR, Zimbabwe received 260 recommendations from 86 countries. Out of these recommendations, 16 referred to the right to freedom of expression, three were focused on the right of access to information and two referenced the right to privacy.2 3. According to the Postal and Telecommunications Regulatory Authority (POTRAZ), Internet penetration in Zimbabwe was 61.1% as at the end of the first quarter of 2021.3 This shows that as the online community in Zimbabwe grows, so does the obligation to protect and to fulfil human rights online. This is in line with Zimbabwe’s obligations under applicable provisions of the Constitution of Zimbabwe4 and Articles 17 and 19 of the International Covenant on Civil and Political Rights (ICCPR)5 on the rights to privacy and freedom of opinion and expression respectively.
    [Show full text]
  • Zimbabue República De Zimbabue
    OFICINA DE INFORMACIÓN DIPLOMÁTICA FICHA PAÍS Zimbabue República de Zimbabue La Oficina de Información Diplomática del Ministerio de Asuntos Exteriores, Unión Europea y Cooperación pone a disposición de los profesionales de los medios de comunicación y del público en general la presente ficha país. La información contenida en esta ficha país es pública y se ha extraído de diversos medios, no defendiendo posición política alguna ni de este Ministerio ni del Gobierno de España respecto del país sobre el que versa. ABRIL 2021 Bond Note o RTGS$ -Real Time Gross Settlement $-, vinculada al US$ con Zimbabue paridad fluctuante desde 2019). Otras monedas de uso menos común son el rand sudafricano, la libra esterlina, yuan chino y la pula de Botswana. Religión: 84,1% cristianos (69,2% protestantes anglicanos, adventistas, luteranos y metodistas; 8% católicos o aproximadamente 1 millón); 4,5% cultos tradicionales; 0,9% musulmanes; 10,2% sin definir. Forma de Estado: República presidencialista Kariba División Administrativa: Es un país formalmente centralizado. Tiene una divi- ZAMBIA Lago Kariba sión administrativa territorial en 10 provincias administrativas (Las ciudades de Harare y Bulawayo tienen estatuto de provincia) y 62 distritos. Binga Nº Residentes españoles: 58 (residentes y no residentes a fecha 31/12/2020) HARARE Día Nacional: 18 de abril (Día de la Independencia del Reino Unido) Hwange Año Independencia: 1980 Constitución: 2013 Mutare Gentilicio: Zimbabuense; zimbabuenses (RAE) Gweru 1.2. Geografía Bulawayo Masvingo Zimbabue se encuentra situado en el África Austral, y no tiene salida al mar. Gwanda El país cuenta con dos importantes ríos: el Limpopo, que marca la frontera BOTSWANA con Sudáfrica, y el Zambeze y el lago Kariba que limitan con Zambia.
    [Show full text]
  • Appointment of Cabinet Ministers His Excellency the President, Comrade E
    Appointment of Cabinet Ministers His Excellency the President, Comrade E. D. Mnangagwa, has, in terms of Section 104 of the Constitution of Zimbabwe, Amendment No. 20 of 2013, appointed Cabinet Ministers, Ministers of State and Deputy Ministers as follows: A. Cabinet Ministers 1. Finance and Economic Development Hon. Professor Mthuli Ncube 2. Defence and War Veterans Hon Oppah Zvipange Muchinguri-Kashiri 3. Local Government, Public Works and National Housing Hon. July G. Moyo 4. Foreign Affairs and International Trade Hon. Sibusiso B. Moyo 5. Public Service, Labour and Social Welfare Hon. Sekesai Nzenza 6. Industry and Commerce Hon. Mangaliso Ndlovu 7. Home Affairs and Cultural Heritage Hon. Cain Mathema 8. Higher and Tertiary Education, Science and Technology Hon. Professor Amon Murwira 9. Primary and Secondary Education Hon. Professor Paul Mavima 10. Lands, Agriculture, Water, Climate and Rural Resettlement Hon. Chief Air Marshal P. Shiri 11. Mines and Mining Development Hon. Winston Chitando 12. Energy and Power Development Hon. Joram M. Gumbo 13. Transport and Infrastructural Development Hon. Joel Biggie Matiza 14. Information, Publicity and Broadcasting Services Hon. Monica Mutsvangwa 15. Information Communication Technology and Courier Services Hon. Kazembe Kazembe 16. Environment, Tourism and Hospitality Industry Hon. Prisca Mupfumira 17. Youth, Sport, Arts and Recreation Hon. Kirsty Coventry 18. Health and Child Care Hon. Dr Obediah Moyo 19. Justice, Legal and Parliamentary Affairs Hon. Ziyambi Ziyambi 20. Women Affairs, Community, Small and Medium Enterprises Development Hon. Sithembiso G. G. Nyoni B. Ministers of State for the Provinces 1. Harare ….. 2. Bulawayo Hon. Judith Ncube 3. Mashonaland West Hon. Mary Mliswa 4.
    [Show full text]
  • Thesis Hum 2020 Ndlovu Mandipa Bongiwe
    ‘The Political Economy of Non-Recurrence: Navigating National Healing, Institutional Reform & Militarisation in Zimbabwe’ Mandipa Bongiwe Ndlovu NDLMAN014 Thesis Presented for the Degree of MASTER OF UniversityPHILOSOPHY (MPHIL) of IN JUSTICECape & TownTRANSFORMATION In the Department of Political Studies UNIVERSITY OF CAPE TOWN Monday 10 February 2020 The copyright of this thesis vests in the author. No quotation from it or information derived from it is to be published without full acknowledgement of the source. The thesis is to be used for private study or non- commercial research purposes only. Published by the University of Cape Town (UCT) in terms of the non-exclusive license granted to UCT by the author. University of Cape Town PLAGIARISM DECLARATION The above thesis is my own unaided work, both in concept and in execution, and that apart from the normal guidance from the supervisor, I have received no assistance. I, Mandipa Bongiwe Ndlovu hereby declare that this thesis has been submitted to the Turnitin Module (or equivalent similarity and originality checking software). Plagiarism is to use another’s work and to pretend that it is one’s own and I know that plagiarism is wrong. I confirm that I have discussed and resolved any concerns emanating from the Turnitin Report with my supervisor. MANDIPA NDLOVU 2 MPHIL DISSERTATION This thesis is dedicated to my fellow Zimbabwean youth. As we struggle for a better future, I hope that this study helps us analyse the complexities of holding our politicians accountable and of achieving social cohesion. Furthermore, I hope it grants us a deeper understanding of the systemic Goliath we are facing and assists us in improving our strategies of research, policy development and practice for the betterment of our country.
    [Show full text]
  • Zimbabwe: Capitalist Crisis + Ultra-Neoliberal Policy = “Mugabesque” Authoritarianism
    Zimbabwe: Capitalist crisis + ultra-neoliberal policy = “Mugabesque” authoritarianism By Patrick Bond Source: http://links.org.au/zimbabwe-capitalist-crisis-ultra-neoliberal-policy-mugabe- authoritarianism February 14, 2019 — Links International Journal of Socialist Renewal — Once again, a formidable burst of state brutality against Zimbabwe’s citizenry has left at least a dozen corpses, scores of serious injuries, mass arrests, Internet suspension and a furious citizenry. The 14-17 January nationwide protests were called by trade unions against an unprecedented fuel price hike, leading to repression reminiscent of former leader Robert Mugabe’s iron fist. Most of the country’s economy ground to a halt. For more than a week, the cities remained ghost towns, as army troops continued attacking even ordinary civilians who are desperate to earn a living in what often seems to be the country’s main occupation these days: street vending of cheap imported commodities. A national strike of 500,000 civil service workers has been called. Most essential commodities are now vastly overpriced or in very short supply. This is what a full-on capitalist crisis looks like. The stresses are obvious within elite politics, for as ever in Harare, rumours of political upheavalabound. But whatever happens to the ruling party’s leadership, a more brutal fiscal policy plus an even tighter state squeeze on hard currency appear to be the new constants. The stubbornness of President Emmerson Mnangagwa’s leadership is partly due to the ideological fervour of his finance minister, Mthuli Ncube, an academic economist with a dubious practical track record and fast-fading international credibility (as CNN interviewers now openly laugh at answers to questions).
    [Show full text]
  • Mugabe to Mnangagwa Transition
    Zimbabwe Media: Mugabe to Mnangagwa transition A PUBLICATION BY MEDIA MONITORS Table of Contents FOREWORD.............................................................................................................................................................2 EDITOR’S NOTE ........................................................................................................................................................3 REFLECTIONS ON REPORTAGE, BY NJABULO NCUBE....................................................................................................4 SELF-CENSORSHIP AND ZIMBABWE’S MEDIA, BY NEVANJI MADANHIRE.......................................................7 MEDIA AND ZIMBABWE’S POLITICAL TRANSITION, BY DR. STANLEY TSARWE ....................................................10 MEDIA STRUCTURES AND NEWS PRODUCTION, BY NIGEL NYAMUTUMBU...................................................13 REPORTING THE MILITARY INTERVENTION, BY PATIENCE ZIRIMA........................................................................16 ELECTION REPORTING: A DEFINING MOMENT, BY MEDIA MONITORS.....................................................................19 SOCIAL MEDIA IN ZIMBABWE’S POLITICAL TRANSITION, BY STEPHEN MANJORO ............................................22 EFFECT OF MEDIA LAWS ON REPORTING, BY JACKIE CHIKAKANO .........................................................................25 SAFETY AND SECURITY OF JOURNALISTS, BY ERIC MATINGO...............................................................................28 MEDIA,
    [Show full text]
  • Front-Ver 2-Backup
    dontdont pagepage printprint thisthis CONSORTIUM POUR LA RECHERCHE ECONOMIQUE EN AFRIQUE ANNUAL REPORT 2005/2006 MEMBERS OF THE CONSORTIUM Department for International Development (DFID) US Agency for International Development (USAID) International Development Research Centre (IDRC) The World Bank (IBRD) John D. and Catherine T. MacArthur Foundation Ministry of Foreign Affairs, Denmark Non-member funders: Ministry of Foreign Affairs, the Netherlands African Capacity Building Foundation (ACBF) Ministry of Foreign Affairs, France African Development Bank (AfDB) Norwegian Agency for Development Cooperation (NORAD) Commission of the European Union Rockefeller Foundation Ford Foundation Swedish International Development Cooperation Agency (Sida) William and Flora Hewlett Foundation Swiss Agency for Development and Cooperation (SDC) BOARD OF DIRECTORS PROGRAMME COMMITTEE Caroline Pestieau*, Chair and Director at large; Canada Caleb Fundanga, Chair; Governor, Bank of Zambia Kerfalla Yansane*, Vice Chair and Director at large; Ernest Aryeetey, Director, Institute for Statistical, Scientific Consultant, Guinea and Economic Research (ISSER), University of Ghana – Ulrich Camen*, Secretary; Programme Director, Mon- Legon etary Policy and Financial Reform Programme, Graduate Manana M. Bakane-Tuoane, Director General, Office of Institute of International Studies; Representing the Swiss the Premier, North West Province, South Africa Agency for Development Cooperation (SDC) Arne Bigsten, Professor of Economics, Gothenburg Antoine Hawara*, Treasurer and
    [Show full text]
  • How to Play a Role in Zimbabwe Derek Matyszak
    How to play a role in Zimbabwe Derek Matyszak MONOGRAPH 199 | DECEMBER 2019 Cover image: © Kate Holt/AusAID How to play a role in Zimbabwe Derek Matyszak Contents Executive summary .............................................................................................iv Abbreviations and acronyms ..............................................................................vi Introduction .......................................................................................................... 1 Chapter 1 Parallel narratives and a converged trajectory ................................................ 5 Chapter 2 Developing the narratives ................................................................................... 9 The illegitimacy component ............................................................................ 9 Illegitimacy and the instability narrative ........................................................ 11 Illegitimacy and the July 2018 elections ....................................................... 12 Challenging the results .................................................................................. 15 Sanctions and economic stress .................................................................... 19 Chapter 3 Strengthening the opposing narrative ............................................................. 29 Opposition to government and the suppression of dissent .......................... 29 Achieving the opposite of the intended effect through polemics ................. 38 Twisting facts at an
    [Show full text]