Even today little credit is given for this and I would just highlight the following achievements in the two and half years that the TSP ran:
- The fiscal deficit which was running at 40 per cent of all expenditure, was resolved and once the Budget had moved into surplus, the Government, despite all the pressure to increase spending, maintained a cash budget and only spent what it was able to collect. In 2019 and 2020, we ran a significant budget surplus.
- The issue of the overvalued local currency (the RTGS dollar) was dealt with by allowing the local currency to float against the main foreign currencies in use and inflation did the rest. By mid-2020, the currency reflected its true value and in fact was undervalued very considerably.
- In June, the President instructed the monetary authorities to start auctioning foreign exchange and that introduced a mechanism for determining a market based exchange rate based on supply and demand. The benefits were immediately apparent and relative stability has resulted with monthly inflation rates declining to 4 per cent.
- Economic recovery has started with the supply of locally manufactured goods on market shelves rising to 45 per cent, from 5 percent three years before. Exports have risen rapidly and imports have declined creating a balance of payments surplus for the first time in many years.
- Agriculture is receiving more attention and output rose significantly in 2020 and is expected to increase again in 2021.
- The re-alignment of local legislation to conform to the basic rules laid out in the 2013 Constitution has also received attention with the realignment of some 150 Acts of Parliament.
- The security sector, previously bloated and corrupt, has also seen changes with some right sizing in terms of employment and changes in leadership and culture.
Massive problems remain, our public health and education systems are a mess. Salaries are too low to retain key staff and standards have declined. The only solution to these problems is more money and here we face numerous problems. We have to grow our economy – we have laid the foundations for growth in the past two years but remain isolated politically and diplomatically and the financial sanctions on us under ZIDERA (the US system) limits our ability to tap into the global financial system and to borrow on lines of credit for our private sector. A growing economy needs much more money than a shrinking one. This was not an issue before, now it is critical.
Even though the international Community has committed itself to the provision of health care to the poor and the principle of universal education for children, we receive virtually nothing from international agencies or the so called ‘Development Partners.’ In fact, the IMF even denied us aid to deal with the Covid crisis.
This highlights the final issue that is on the table. When will the changes engendered by the post November 2017 Government receive sufficient recognition for the international Community to start treating us like any other developing State? The recent imposition of ‘sanctions’ on four military Officers here simply demonstrates the ignorance of the Foreign Office in London regarding the very real changes that have taken place here and the total failure of policy by the same Department in respect to Myanmar. It shows no understanding of our complexities or fundamentals and is a largely cosmetic decision which will not influence affairs here but will continue to needlessly label the Government of Zimbabwe as somehow a rogue State. We deserve better.
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