“I can see the light”, Mthuli Ncube tells Zimbabwe Senate

I did mention that looking at the external side, we are determined to banish any balance of payments or current account deficits.  I am happy to say that in the first half of the year, the current account position is positive and we expect that by year, end the current account would be  US$1.9 billion.  This is important.  When your current account is positive it means you are exporting or earning forex more than you are importing.  When you have a deficit, you are actually exporting jobs, incomes and economic opportunities.  We have started doing the opposite.  It is actual proof, Madam President, that our currency strategy is working because when you have a domestic currency that is weaker than obviously the foreign currency, you expect it to promote exports and discourage imports.  You expect to turn your current account position around and this is what has happened.  So, that objective has been achieved through currency reform.

On the Z$18 billion, I talked about the supply side push, the stimulus package, of course it covered agriculture, repositioning the agriculture sector budget of $6.1 billion to be more productivity oriented and we are doing that.  We have a working capital facility for industry of $3 billion and the industry is starting to access that and we also want to support the mining sector, especially the gold sector.  Some of you live in constituencies that have been targeted for the establishment of gold centres – we want to support those.

We also want to support the SMEs with half a billion dollar facility and people have lost jobs and indeed the tourism sector which is virtually shut and we want it to report.  The operators ought to access credit through the facility.  We supported the sports people and we have done a lot in the health sector in terms of revamping our health facilities.  I have never seen so much focus on the health sector and every Cabinet Minister now is a doctor or have some knowledge of health issues because we have concentrated our minds and energy on this issue and I think that the results are there to see.  Of course, it is never enough because COVID- 19 is what it is but we have worked very hard to deal with issues in the health sector.

Then in terms of the cash transfers for the vulnerable, our target has been 1 million people and the registration process is slower but it is coming up.  But, we would like citizens to come forward and register because surely, if you are feeling the pressure and deprived, come forward and register with the Department of Social Welfare and the $300 per month is waiting for you.  That is what we promised. We have a budget of $2.4 billion for citizens who are vulnerable.  So, please come forward and register so that we can support you.

Then coming to the budget outturn itself, I must say that so far, for the first half of the year, we received about Z$34 billion in terms of inflows/revenues and in terms of expenditure, we had spent about $30 billion so far.  Do not be fooled. It is not that the difference is $4 billion. There are other outstanding payments of about $3 billion.  So, our budget position is a positive or a small surplus of Z$800 million.  So, the takeaway Hon. Members is that our budget is balancing – we are living within our means and that is the message that we wanted to send.

Then in terms of expenditure, so far we have only spent 47% of our budget, we have 53% to spend but it varies across Ministries because some have above 50% and some have less than that.  I can give you details as to which ones have spent less.  But I want to encourage Members that when it comes to devolution, please, we need those projects on the ground.  You represent areas, regions, and we need those projects on the ground as Government so that we can support development at the local level.  Development is a bottom up process because at the top, we just drive policies.  If the project is not coming up at the actual level, we are not going to make progress and please, do that.  So far we have spent about Half a billion dollars in terms of the devolution resources which I know you track.  Our budget is $2.9 billion, so, we have a long way to go.  We need those projects from yourselves as the actors on the ground.

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