MDC-T Shadow Minister of Finance analyses Chinamasa’s mid-term policy review statement

2. International Re-engagement

International re-engagement is dead in the water. The Minister did not even mention progress, if any, on the promised $1billion from Lazard bank and Afreximbank which is meant for settling arrears to the World Bank ($1.1 billion), IMF ($110 million) and AfDB ($601 million)  Nothing was said about the bail- out from Algeria.  The truth is that the success of re-engagement will critically depend on macro-economic and political reforms. As it stands, government neither has the ability nor the political will to introduce the much needed reforms.

We commend the efforts by the International Community which has stood by Zimbabwe. In 2016, total Development Partner support is projected at $474.4 million. Already $193.2 million was disbursed between January and June 2016, of which $73.8 million is from bilateral partners while $119.4 million is from multi-lateral partners.

• In addition, the following European countries should be thanked for assisting Zimbabwe throughout all these difficult periods, despite the sanctions accusation: UK, Australia; Denmark; Germany; Japan; Netherlands; Norway; Sweden; Switzerland and other EU members.
• From Asia we must also appreciate the assistance from China and India.

3.Policy review thrust –  A mere rhetoric

No fundamental policy changes were announced in the mid-year budget review statement.

The Minister still harps on:

• Reducing poverty, stimulating the productive sectors, improving the ease of doing business, restoring fiscal discipline in the public sectors, rebuilding confidence in the financial sector, advancing re-engagement, mobilizing resources for ZIM-ASSET and maintaining the multi-currency regime.

There is no tangible evidence on the ground to show that the above measures are being implemented in earnest. Therefore, the mentioning of these measures is mere rhetoric. There is no implementation.

4.GUFFS

The proposed takeover by government of Hwange Colliery assets (houses and social amenities) is day light robbery. Government must face a law suit for expropriation. Instead of discouraging corporate social responsibility by mining houses, government should actually applaud Hwange Colliery for providing housing and social amenities for the community. But we all know that big wigs are targeting the leafy low density suburban houses of Hwange town.

The operational viability of Hwange is a corporate governance issue which has nothing to do with its corporate social responsibility. But the takeover by government simply shows its asset stripping DNA.

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