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

Madam President, on structural issues, we always like to give a fuller report.  This is the nine economic reforms. I think let me highlight the three important things: – one, we know about the repeal of POSA in replacement by MOPA and that is done and everyone knows what it is all about.  Then recently you as Senate repealed AIPPA through the enactment of the Freedom of Information Bill a few weeks ago.  So there is progress on those two.

Then finally, another structural issue is the environment for doing business.  We improved with one of the top 20 performers last year in terms of improvement in the environment for doing business.  We want to keep getting better; so as Government we have identified 16 areas for improvement and each Ministry has an area to focus on over the next two years so that we can improve our environment for doing business.  His Excellency has continued convening the activities of the POLAD process; building and making sure our political parties come together, discuss issues and the future of the country.

I have two more points before I sit down Madam President.  One is on the National Development Strategy – that process has started.  We have done a concept note and identified about 11 areas regarding the National Development Strategy which will drive the Budget for 2021 and successive budgets for the next five years.  Some of the areas that are emerging from the consultations involve macrostability, focusing on the youth and culture, focusing on governance, focusing on industrialisation and value chains, health and well being; housing issues are important, building human capital; the environment is critical, devolution, protecting the vulnerable – social protection, transportation, infrastructure issues and issues around food security and nutrition.  Digital economy is also included. These are some of the issues that are emerging as critical for us to have a successful strategy for the next five years in the form of the National Development Strategy (NDS).          It is our aim Madam President, that by end of October the NDS is completed and launched because we need that to drive our thinking for the 2021 Budget.

My final point is on revenue measures which we have already offloaded to say, look we needed to stimulate both the supply and demand sides.  On the revenue measures, our request which also come through formerly for approval to Senate, has to do with the tax bands which we have pushed up as well as the tax threshold that used to be ZWL$2 700.00 which is not taxed.  We have doubled that threshold to ZWL$5 000.00 now, standard tax bands but also we have made a commitment that health sector workers would not pay VAT on their risk allowance.  So we have removed that and we will ask you to endorse that as Senate and the USD$75.00 COVID-19 allowance is also non-taxable.  We will also request that permission.

I must say that we will also request you to endorse our proposals for the incentives that we have put in place for the Victoria Falls Stock Exchange which again is one of those things  that we will use to drive Foreign Direct Investment into our economy.  So again, we will ask you to endorse some of our proposals and approve those to drive that sector.  We have a few things to fine-tune on royalties for the mining sector.  Anyway, there is a full bouquet of requests that will come to you in the next few weeks and in the fullness of time.

Madam President, let me say the future is bright, I can see the light and growth will be better next year.  We are on a winning wicket for those of you who like cricket.  I will find the right expression for those who like soccer.  I thank you.

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