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Transitional Stabilisation Programme ZIMBABWE TRANSITIONAL STABILISATION PROGRAMME REFORMS AGENDA October 2018 – December 2020 “Towards a Prosperous & Empowered Upper Middle Income Society by 2030” 05 October 2018 Harare 1 i PREFACE The holding of a free, fair, credible and peaceful election on 30 July 2018, ushered in the Second Republic, allowing me to constitute its first Government. Our immediate task is walking the talk with regards to fulfilling the electoral promises and commitments we made during campaigns for office. First and foremost, is embarking on the implementation of national development policy initiatives and programmes to transform our economy to realise Vision 2030, the UN Sustainable Development Goals, and the AU Agenda 2063. This is a reflection of the collective determination and aspiration of the people of Zimbabwe for a Prosperous and Empowered Upper Middle Income Society by 2030. This Transitional Stabilisation Programme, over October 2018 – December 2020, prioritises fiscal consolidation, economic stabilisation, and stimulation of growth and creation of employment. Adoption and implementation of prudent fiscal and complementary monetary policies will anchor return of investor confidence lost over the past two decades, stabilising the macro- economic environment, which is conducive for opening up to more business. The Transitional Stabilisation Programme outlines policies, strategies and projects that guide Zimbabwe’s social and economic development interventions up to December 2020, simultaneously targeting immediate quick-wins and laying a robust base for economic growth for the period 2021-2030. The Economic growth envisaged during the Programme period will inevitably be driven by the private sector, with Government facilitating a supportive macro-economic and business environment. iii Focus will be on value addition and beneficiation, to realise higher value exports, and cushioning the economy from the vagaries of international commodity price fluctuations associated with over-dependence on export of raw commodities. The success of the Programme will not depend on Government efforts alone, but on a coordinated collaborative multi-stakeholder approach. This is critical if we are to overcome and redress the underlying challenges arising from economic fragility, joblessness, inequality and poverty. This Programme, therefore, recognises the need for empowerment of women and youths, while also bringing to the fore key issues that improve the welfare of the historically marginalised groups, including people facing physical challenges. I am, therefore, making a strong appeal to all stakeholders that we all put the Elections behind us, and collaboratively participate fully in the reconstruction of our economy. On my part, I undertake to provide the political will needed to ensure full implementation of the Programme, mindful that this will entail pain and need for sacrificing short term gains for longer term prosperity. Everyone has a responsibility in this economic reconstruction endeavour. This includes the academia, faith based and civil society organisations, embracing their grassroots structures and advocacy towards complementing Government efforts, and the media, central to the dissemination of information and general citizenry awareness. Also critical will be our people in the Diaspora, whose participation in economic transformation initiatives goes beyond contribution through remittances and philanthropic work, and is targeted to include skills transfer and involvement in arising domestic investment opportunities. iv Our Cooperating Partners will also be critical as efforts by my Government to re-engage the world gather momentum, including re-establishment of relations with the international financial community, critical to complementing domestic efforts to mobilise resources and build up development capacity. Most importantly, the need for transparency and accountability by all stakeholders and citizens will be key for the transformation of the economy and realising the aspirations of Vision 2030. I, therefore, commend the Transitional Stabilisation Programme for October 2018 – December 2020 to the people of Zimbabwe, and I urge all stakeholders to fully support its implementation. I thank you. Emmerson Dambudzo Mnangagwa President of the Republic of Zimbabwe 05 October 2018 Harare v vi ACRONYMS AfDB : African Development Bank ARDA : Agricultural and Rural Development Authority AREX : Agriculture and Rural Extension ASYCUDA : Automated Systems for Customs Data AU : African Union BAZ : Broadcasting Authority of Zimbabwe BEAM : Basic Education Assistance Module BIT : Bilateral Investment Treaty BOOT : Build Own Operate Transfer BOT : Build Operate Transfer BT : Build and Transfer CAAZ : Civil Aviation Authority of Zimbabwe CMED : Central Mechanical and Equipment Department COMESA : Common Market for Eastern and Southern Africa COTTCO : Cotton Company of Zimbabwe CSC : Cold Storage Company DA : District Administrator DDF : District Development Fund DfID : Department for International Development DSIB : Domestic Systemically Important Banks ECD : Early Childhood Development E-GP : Electronic Government Programme EIB : European Investment Bank EMA : Environmental Management Agency ERRP : Emergency Road Rehabilitation Programme ESAP : Economic Structural Adjustment Programme EU : European Union FDI : Foreign Direct Investment vii FINTECH : Financial Technology FM : Frequency Modulation GA : Government Authority GATD : Government Authority to Drive GDP : Gross Domestic Product GMB : Grain Marketing Board HIV : Human Immunodeficiency Virus HPC : High Performance Computer HSCT : Harmonised Social Cash Transfers ICT : Information Communication Technology ICSID : International Centre for Settlement of International Disputes IDBZ : Infrastructure Development Bank of Zimbabwe IDC : Industrial Development Corporation IFAD : International Fund for Agricultural Development IFC : International Finance Corporation IMF : International Monetary Fund IPEC : Insurance and Pensions Commission JSC : Judicial Services Commission KV : Kilovolt MOU : Memorandum of Understanding MMCZ : Minerals Marketing Corporation of Zimbabwe MSMEs : Micro, Small and Medium Enterprises MTP : Medium Term Plan MW : Megawatt NBS : National Building Society NFIS : National Financial Inclusion Strategy NRZ : National Railways of Zimbabwe NSSA : National Social Security Authority OFID : OPEC Fund for International Development OPEC : Organisation of the Petroleum Exporting Countries viii OPIC : Overseas Private Investment Corporation PFMS : Public Finance Management System PGM : Platinum Group of Metals POSB : People’s Own Savings Bank POTRAZ : Postal and Telecommunications Regulatory Authority of Zimbabwe PPP : Public Private Partnerships PRAZ : Procurement Regulatory Authority of Zimbabwe PSMAS : Premier Service Medical Aid Society RDC : Rural District Council RMS : Road Motor Services RRI : Rapid Results Initiative RTGS : Real Time Gross Settlement System SACCO : Savings and Credit Cooperative Organisation SADC : Southern African Development Community SDGs : Sustainable Development Goals SECZ : Securities and Exchange Commission of Zimbabwe SEP : State Enterprises and Parastatals SEPD : State Enterprises and Parastatal Development Committee SGR : Strategic Grain Reserve SI : Statutory Instrument SIRDC : Scientific and Industrial Research and Development Centre SIRESS : SADC Integrated Regional Electronic Settlement System SME : Small and Medium Enterprises SMEDCO : Small and Medium Enterprises Development Corporation STEM : Science, Technology, Engineering, and Mathematics STERP : Short Term Emergency Recovery Programme TBs : Treasury Bills TOR : Terms of Reference TV : Television UDCORP : Urban Development Corporation ix UN : United Nations UNIDO : United Nations Industrial Development Organisation VAT : Value Added Tax WTO : World Trade Organisation ZARNET : Zimbabwe Academic and Research Network ZCDC : Zimbabwe Consolidated Diamond Mining Corporation ZESA : Zimbabwe Electricity Supply Authority ZIA : Zimbabwe Investment Authority ZIANA : Zimbabwe Inter Africa News Agency ZIDA : Zimbabwe Investment and Development Agency ZIMASSET : Zimbabwe Agenda for Sustainable Socio-Economic Transformation ZIMCORD : Zimbabwe Conference on Reconstruction and Development ZIMFUND : Zimbabwe Multi-Donor Trust Fund ZIMPREST : Zimbabwe Programme for Economic and Social Transformation ZIMRA : Zimbabwe Revenue Authority ZIMREF : Zimbabwe Reconstruction Fund ZIMSTAT : Zimbabwe Statistics Agency ZIMTRADE : Zimbabwe National Trade Development and Promotion Organisation ZIMURA : Zimbabwe Musicians Rights Association ZINARA : Zimbabwe National Roads Administration ZINWA : Zimbabwe National Water Authority ZISCO : Zimbabwe Iron and Steel Company ZMDC : Zimbabwe Mining Development Corporation ZPC : Zimbabwe Power Company ZRA : Zambezi River Authority x EXECUTIVE SUMMARY 1. The Transitional Stabilisation Programme over October 2018 to December 2020 draws its policy thrust from Vision 2030. 2. The Programme will focus on: • Stabilising the macro-economy, and the financial sector. • Introducing necessary policy, and institutional reforms, to transform to a private sector led economy. • Launching quick-wins to stimulate growth. 3. In crafting this Programme, inputs of various stakeholders, who include business, labour, civic society, development partners, and other groups were taken on board. Vision 2030 4. The aspirations of Vision 2030 are anchored by the following values and objectives: • Improved
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