Browsing: Zimbabwe economy

• Zimbabwe is phasing out ZWL as it ushers a new gold-backed currency, ZiG, starting today, Monday, 8 April 2024.
• The ZiG is anchored by 2.5 tonnes of gold in the central bank’s vault and a basket of foreign currencies held as reserves.
• Zimbabwe’s new Central Bank Governor has announced sweeping reforms as the new currency enters everyday use.

Zimbabwe launched a new currency on Friday, 5 April 2024, called the Zimbabwe Gold or the ZiG. The launch of the new currency occurred during the announcement of the country’s latest Monetary Policy Statement (MPS) in an event presided over by newly appointed central bank governor John Mushayavanhu.

The MPS introduced measures and interventions to anchor the local currency and ensure exchange rate and price stability. The old currency, the ZWL, had depreciated to its lowest against the US dollar, roughly ZWL 32,000. It lost over 90 per cent of its …

This year’s current account surplus was replaced by a deficit of 1.8 per cent of GDP and a budget deficit of 2.9 per cent in 2020, respectively.
A depreciation of ZWL2.5 to the US dollar was recorded in February 2019 before stabilizing at ZWL82 in December 2020. Unemployment remained high in 2019 at over 21 per cent, with poverty at 70.5 per cent and unemployment at 70.5 per cent respectively.
Currently, the banking sector is sound. …

Zimbabwe’s Finance Minister Mthuli Ncube delivered an optimistic 2021 $426 billion worth national budget. The upcoming year’s budget under the theme: Building Resilience and Sustainable Economic Recovery, is meant to be a gateway for an economic revival in the struggling country. 

The budget allocated a sizable proportion of the funds towards the health and education sectors.  

Key Budget Highlights

• Budget size $421.6 billion
• Revenue collection projected at $390.8 billion
• Public debt $1.9 million
• The economy is expected to grow 7.4% in 2021 following a consecutive decline in the past two years.
• Year on year inflation is projected to end the year 2021 at 9% 
• Upward review of tax-free threshold on salaries and 2% transaction levy and bonus.
• Foreign currency-denominated corporate tax payments.
• Tightening of Informal sector tax (Presumptive tax) collections.

Economic Recovery 

The minister presented optimistic growth metrics. The budget projects an anticipated 7.4% economic growth trajectory following two …

Zimbabwe’s Mining Sector,

In the 6th State Of The Mining Industry Prospects For 2021 Report, Zimbabwe’s mining sector representatives projected an optimistic outlook for 2021, citing an improvement in COVID-19 control, rising commodity prices, and an improved fiscal environment.

The mining sector faced a difficult year on the back of falling commodity prices. The situation was exacerbated by the impact of the COVID-19 pandemic which ravaged the entire globe.

The findings of the report indicate that the mining sector business confidence index is expected to improve to +3.1 in 2021 from 2.2 in 2020. The mining sector business confidence index is a measure of optimism (or lack of it) among mining executives.

Of the respondent interviewed, 90% of the miners in the country said they are looking forward to expanding their businesses in the coming year. This is in contrast with the 10% that don’t foresee any change in …

The government of Zimbabwe has set in motion an economic roadmap for the next 5 years. The new blueprint is anticipated to achieve a 5% growth in the country’s economy over a period of 5 years to 2025

Dubbed the National Development Strategy (NDS) 1, the economic blueprint replaces the transitional development strategy phase which the government says has achieved critical success.

The NDS 1 will therefore be rolled out under better economic conditions than the TSP and carries with it bold strategies and policies to catapult economic growth,” Mnangagwa said.

The country’s president Emmerson Mnangagwa announced the new plan which he said was supported by accelerated growth on the back of improvements in mining, agriculture tourism, and the manufacturing sector. 

The country is finance minister is expected to deliver the financial banking of this plan when he presents his budget this month

Some of the highlights of the economic …

For years, Zimbabwe has faced strict trade restrictions as the international community felt there was a gross violation of human rights and political freedoms. This has left Zimbabwe alienated from the league of nations as well as low international trade.

But now, the political times have changed and Zimbabwe is now declaring that it is open for business. The country is committed to creating conducive conditions and incentives for investors, according to Zimbabwean President H.E. Emmerson Mnangagwa.

Speaking at the just-concluded Global Business Forum Africa 2019 in Dubai, Mnangagwa discusses economic reforms in Zimbabwe and new business opportunities emerging across the country.

During an interactive session on the first day of the forum, H.E. Mnangagwa explained that economic zones are being created in Zimbabwe as the government looks to attract foreign investment. He stressed the importance of developing new initiatives that invest in skills development and human capital.

His …