OVERARCHING PRIORITIES

1. IMPLEMENTATION OF STERP

• Aims to achieve STERP publicity and campaign programmes, targeting  the countries Provincial Capitals.
• This is to be a 30-day milestone and the teams already constituted  will be led by Hon. Minister of Finance and the other by the Hon. Minister of  Economic Planning and Investment Promotion.
• Together with the  Prime Minister’s office follow up on the implementation of all measures in  STERP will be done through out the Ministry’s 100-day period.

2. FUNDING OF STERP

• Raise funds to finance STERP (e.g. for water and sanitation,  health and education, importation of electricity).
• The 30-day milestone is to have a donor conference in May  2009 and re-capitalization of all the water reticulation systems for all urban  centers in conjunction with the ADB within 90 days.

3. PUBLIC SECTOR REFORM

• The target is to  re-enforce the Public Finance Management System.
• Aims to develop  detailed terms of reference for technical assistance to assess the PFMS system;  Engage consultant(s) to carryout detailed review of the PFMS framework and  operations within 30 days.
• Develop  enforceable mechanism for sanctioning cases of  financial misconduct and undertake an audit exercise of Ministries that are  already online in a 30-day milestone.
• Resuscitate  disbursement of resources through the PFMS system and Bring online new  ministries within 30 days.
• Develop training  materials on computerized PFMS active modules within 60 days.
• Engage  co-operating partners on proposed bill and consider appropriate input in  compiling the final draft.
• Ensure the audit  of the civil service.
• Multilateral  support to finance the above audit.
• Complete the  study on parastatals as well as expanding the Committee.
• Target  institutions include Net-One, Tel-One, GMB, ZISCO-STEEL, Air Zimbabwe, NRZ,  CSC, ARDA, and NOCZIM.
• Governance code  for our parastatals to be incorporated into Law.

4. MACRO-ECONOMIC STABILITY

• Targets  Institutional Reform at the Reserve Bank Of Zimbabwe by surrendering all  quasi-fiscal assets to Treasury; Production of RBZ Audited Accounts; Expression  of Financial Statements in multiple currencies; Terms of Office of Deputy  Governors; Reconstitution of RBZ Board within 30 days.

• Supervision of  the Banking Sector by Amending the Reserve Bank Act as well as official  declaration of assets within 30 days.
• Creation of a  Monetary Committee; Review of Reserve Requirements; Restoration of credit to  the system and Increasing bank’s liquid assets is a 60-day milestone.
• Consider creation  of a Financial Services Authority over a 90-day period.
• Ensure the  effectiveness of the Banking sector through restoration of fair interest policy  within 60 days.

5. RESOURCE MOBILISATION

• Mobilize  resources to finance the 2009/2010 agricultural season.
• To raise US$  62million for fertilizers and agro-chemicals, and credit finance for banks to  on-lend farmers for an expected output of 100 000 tons for winter crop within  30 days.
• By May 2009,  should have mobilized sufficient fertilizers and chemicals using the same  arrangements as those for the 2009 winter wheat crop.
• Target sources of Finance, contract farming, credit from the local  banking institutions, such as Afreximbank, African Development Bank (Fragile  State Facility), IDC, Development Bank of Southern Africa, PTA Bank over a  90-day period.
• Enhance revenue  collection capacity by identifying staff and resource requirements; Complete  Zimra restructuring; If need be, appoint an independent border post revenue  collection agency within 30 days.
• Identify revenue  gaps by carrying out audits in order to assess revenue collection potential on  Customs Duty; VAT and Presumptive tax.
• Improve revenue  inflows by undertaking visits  to ports of entry and exit in order to identify areas of revenue leakages;  Undertake visits to line Ministries and Government departments that administer  fees and charges to assess impact and efficiency of service delivery and  collection of fees in foreign currency; Revisit revenue retention policy in  order to account for utilization of retained funds; Restructuring of the  Revenue Department.
• Review tax  policies in order to broaden tax base by extending VAT on selected financial  services; Revisit zero rated and exempted goods and services; Review valuation  mechanism of second hand motor vehicles in order to enhance fair assessment of  duty; Review of mineral royalties in view of the removal of the surrender  requirements.
• Recapitalisation  of water management authorities through developing, appraise and approval of  recapitalization proposals for consideration by ADB and other development  partners; Disburse resources availed in the 2009 Budget to Local Authorities  for implementation of critical water projects.