Browsing: Zimbabwe’s economy

Treasury is expected to continue its trajectory f fiscal consolidation and discipline together with increasing incentives to grow investments in value chain sectors and stability in power supply.
On the taxation front the budget was expected to provide relief to the poor who make up at least 49.9 per cent of the population of the country. This is particularly significant because it has been said on several occasions that Zimbabwean people are among the most taxed in southern Africa.
This is partly the legacy of the minister of finance’s austerity for prosperity policy which resulted in a largely resented 2 per cent transfer tax on all transactions. There have been calls for this tax to be repealed and the tax-free threshold to be increased.

Zimbabwe’s food security levels are quite low, but there is a promise of a better outcome from the previously anticipated situation. This is mainly because the country has received above-average levels of rainfall during the current rain season. There is hope that the expected bumper harvest will help bring resolution to the challenges of food insecurity.

However, there is still a need for food aid due to the deficit emanating from the two previous consecutive poor rainfall seasons experienced in most districts of Zimbabwe. The droughts resulted in poor harvests, which caused inadequate household food stock from personal production.