This Press Statement is in line with our commitment in the 2012 Budget Statement on the necessity of being transparent and adequately informing the public on economic developments. This Statement, therefore, seeks to update the public on fiscal and other macro-economic developments, focussing on the months of January - February 2012....

PRESS STATEMENT BY THE MINISTRY OF FINANCE ON THE HEALTH SECTOR DEVELOPMENT SUPPORT GRANT OF US$15 MILLION

1.Government, represented by the Ministry of Finance, signed a US$15 million Health Sector Development Support Grant Agreement with the World Bank on 27 September 2011 in Washington DC. This was along side the International Monetary Fund/World Bank Annual Meetings.

2.The World Bank is administering the US$15 million Grant under the Multi-Donor Trust Fund for Health Results Innovation. Funding contributions are being made by the United Kingdom’s Agency for International Development (DFID) and the Government...

The Ministry of Finance has begun the 2012 National Budget consultation process. As part of this process, the Minister of Finance has also launched the Budget Strategy Paper for 2012 in order to broaden participation and in-depth debate on the national priority issues for the 2012 National Budget.

Treasury has thus constituted teams that will hold consultative meetings on the Budget and related economic issues in Provinces and selected Districts. It is envisaged that stakeholders will use the consultative process to make inputs on key policy interventions for the 2012 National Budget.

The first meetings have already been conven...

In a major climbdown the Reserve Bank of Zimbabwe (RBZ) has indefinitely suspended the implementation of recently introduced policy measures requiring proceeds from disposal of immovable property valued at $50 000 or more to be paid in tranches.

The measures, meant to enhance foreign exchange monitoring, management and improving market liquidity remittance of sale proceeds from disposal of immovable property, had ruffled feathers on the property investment market.

The measures took effect on August 1 amid an outcry from property dealers.

RBZ senior division chief (exchange control) Morris Mpofu said on Monday the suspensi...

ZIMBABWE'S economy is poised for growth but there are enormous constraints that militate against the country achieving its full potential, a top World Bank official said last week.

Kundhavi Kadiresan, the World Bank country director for Malawi, Zambia and Zimbabwe lauded the country's economic recovery driven by mining and agriculture but said it was susceptible to shocks and problems that would impede growth.

"The constraints are enormous…the demand and supply when you look at the energy sector is going to have a huge deficit.

"Therefore, unless government really starts looking at building the infrastructure…energy, roa...

A World Bank – managed fund to provide technical assistance to Zimbabwe has raised US$16 million from donors to help build a foundation for revival, a top official from the bank has said.

Mungai Lenneiye, the World Bank head in Zimbabwe said the Multi Donor Trust Fund (MDTF), a pool of funds from donors and cooperating partners, caters for technical assistance in critical sectors of the economy.

"That only (analytical MDTF) has raised US$16 million basically to support technical assistance and studies.

"The studies are in areas of agriculture, agrarian reforms, improved economic management helping the government strengthe...

ZIMBABWE remains indebted to the International Monetary Fund (IMF) despite government's commitment to settle its arrears, according to new information from the global lender.

Last month, government said it would draw US$140 million from the pool of the Special Drawing Rights awarded to Zimbabwe in 2009 and pay its arrears under the IMF's Poverty Reduction and Growth Trust (PRGT).

According to an IMF latest report, Zimbabwe, Somalia and Sudan remain in protracted arrears to the fund. IMF said Zimbabwe's arrears to the PRGT have decreased slightly.

Zimbabwe now owes IMF about US$55 million. However, IMF said "cooperation ...

The Government is working on solving accommodation challenges facing the National University of Science and Technology (NUST) and Bulawayo’s perennial water problems as well as improving the railway infrastructure.

The developments are part of efforts to turn around the economy using Public Sector Investment Programme (PSIP) funds.

This was said by the Permanent Secretary in the Ministry of Finance, Mr Willard Manungo, soon after touring National Railways of Zimbabwe’s PSIP sponsored projects at Dabuka Marshalling Yards and some caution areas in the Somabula area on Friday.

Mr Manungo said the Government was pushing for m...

Inflation, which was contained below 3% during the second quarter of 2011, is gaining momentum, reaching 3.3% by July 2011, against 2.9% recorded in the months of May and June 2011. Similarly, month on month inflation for July was 0.3%, implying an increase by 0.1% from the June levels of 0.2%.

The high July inflation was mainly on account of food price increases and to some extent, some non-food items, particularly detergents and hotel accommodation and catering services, whose inflation rates were at 3.56% and 3.13% respectively.

Products in the food basket, which recorded price increases from the previous month, were mealie-...

Background

In the light of inquiries by some stakeholders, it has become necessary that we give an update on the utilization of Zimbabwe’s IMF Special Drawing Rights (SDRs).

It will be recalled that in response to the global financial crisis and the need to supplement reserve assets of member countries, the International Monetary Fund (IMF) Executive Board approved a US$250 billion (SDR161.2 billion) General SDR allocation to all the 186 member countries in August 2009. A further US$33 billion (SDR21.5 billion) Special SDR allocation was made on 9 September 2009.

From the above amount, Zimbabwe was allocated SDR328.4 mill...

1. The Ministry of Finance wishes to assure stakeholders and members of the public that revenues collected by Government and any funds coming into the Exchequer Account are being managed within the provisions of our legal framework, being the Constitution of Zimbabwe and the Public Finance Management Act (Chapter 22:19).

2. Section 101 of the Constitution of Zimbabwe states that:

“All fees, taxes and other revenue of Zimbabwe from whatever source arising, not being moneys that:

a. Are payable by or under an Act of Parliament into some other fund established for a specific purpose; or

b. May, by or under an Act of Pa...

The government has set aside $32 million for the automation of the Zimbabwe Revenue Authority (Zimra) to reduce smuggling of goods and ensure privacy in the handling of businesses and personal information, Finance Minister Tendai Biti said.

He said the automation will be implemented in phases.

Presenting his Mid-Term Fiscal Policy Review in Harare on Tuesday, Biti said the reform of tax administration was incomplete without automation, which enhances efficiency of policy and administration of taxes.

"A key benefit derived from automation is the provision of data to improve decision making, thereby strengthening service de...

MDC-T party has praised the Mid-Term Fiscal Policy review statement by Finance minister, Tendai Biti saying it would improve the lives of the ordinary people, create employment and promote economic growth.

The party said it commended Biti for drastically trimming down government expenditure, especially the procurement of luxury vehicles and overseas travel by senior government officials.

In a statement, the MDC-T party said the fiscal policy review was "pro-poor" and the projected 9,3% growth rate as well as the 4% inflation rate by year end, are achievable targets.

"We complement minister Biti’s move to allocate a $40 mi...