How Zimbabwe will use the US$1 billion from the IMF

The idea with both the agricultural sector and industry is to leverage private sector funds.

With SDRs in the background providing a form of guarantee, a private sector bank can extend the financing facility to a company that has been identified as a value chain enhancer.

So, it’s not just money from Government or the IMF, but we can use the new climate to leverage private sector support; a public private partnership principle in the deployment of these SDRs.

The gold sector is another area with huge potential for Zimbabwe. Our small-scale producers produce about 60 percent of our gold. We must support these small-scale producers; most of whom are young and entrepreneurial.

The idea, therefore, is to invest in at least 10 “Gold Centres” across the country. Each centre is a one stop shop, which will allow the miner to have access to equipment and transportation and a regulated mechanism through which they can get paid.

This will help Government manage leakage, while supporting the young small-scale miners who need help, support, and capital. It will also allow a more transparent process for the purchasers of the gold, improving the Know Your Customer (KYC) process, a potential impediment to sector growth.

Of course, an area that must never be overlooked is infrastructure, in particular housing and road construction. On road construction, we are again looking to see quick and sustainable returns on our investment, developing roads in the areas where there’s potential for tourism, or for agricultural sector development.

And last, but certainly not least, some of these funds will be used to maintain the incredible macro-economic stability which has drawn praise from international institutions and globally-respected economists.

We must continue to build our international foreign currency reserves to support the domestic currency which has performed so valiantly thus far. Setting aside resources to buttress the currency can ensure that the downward trend in inflation is maintained.

Experts, both domestic and global, are predicting a brighter economic future just over the horizon for the people of Zimbabwe.

In conjunction with our friends in the international community, we are confident that we can build on the impressive macro-economic stability we have achieved.

Through the National Development Strategy 1 (NDS 1) we can now firmly focus our efforts on renewed growth and prosperity for the benefit of all our citizens.

By Mthuli Ncube, Minister of Finance, from The Herald

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