Zimbabwe 2021 mid-term budget and economic review statement in full

COVID-19 VACCINATION

41. In view of the persistent COVID-19 pandemic, intensive vaccination remains un-avoidable and a long-term solution to save lives and livelihoods, utilising the savings from last year. To date, resources amounting to US$93.2 million have been spent on vaccines alone.
42. Government has set aside US$100 million for vaccines acquisition.

STRATEGIC GRAIN RESERVE

43. As at 26 July 2021, grain deliveries by farmers to GMB depots stood at 636 884 tonnes valued at ZWL$20.9 billion, of which 566 751 tonnes was for maize, 58 212 tonnes small grains, 11 260 tonnes soya beans and 661 tonnes wheat.
44. Going forwards, to ensure timely and efficiency in payment for the procurement of the anticipated deliveries of 1.9 million tonnes valued at ZWL$62 billion, Government will continue to mobilise resources through various instruments, including purchases by private sector.

PUBLIC DEBT

Domestic Debt

45. Mr. Speaker Sir, access to external financing remains constrained, due to debt arrears, therefore, domestic financial markets remain the major source of budget financing. Consequently, domestic debt as at end April 2021 amounted to ZWL$20.9 billion.
46. Meanwhile, following the signing of the Global Compensation Deed in July 2020 in support of the compensation of farm improvements to Former Farm Owners, Treasury has engaged a Financial Advisor- Newstate Partners UK, who will advise on mobilisation of resources.
47. Government will continue making interim relief payments to Former Farm Owners, while mobilising the resources for the full compensation.

Arrears and External Debt

48. As at end December 2020, total Public and Publicly Guaranteed external debt including RBZ external guaranteed debt amounted to US$10.5 billion, representing 71.2% of GDP. External debt arrears alone make up over US$6.5 billion (77%) of total external debt.
49. Mr Speaker Sir, Treasury, in March 2021, resumed quarterly token payments to the Multilateral Development Banks (MDBs), the World Bank Group, the African Development Bank Group and the European Investment Bank.
50. Token payments are part of the re-engagement process with the International Community in line with the Arrears Clearance and Debt Relief Strategy which is critical in regaining access to concessional financing from both multilateral and bilateral development partners. Payments to Paris Club Creditors will also begin in the second half of 2021.

DEVELOPMENT PARTNER SUPPORT

51. Mr Speaker Sir, Government notes and appreciates support pledged by Development Partners in 2021 amounting to US$841.5 million, towards implementation of development programmes and projects across various sectors of our economy.
52. Development partners disbursed resources amounting to US$430 million, during the first half of the year, accounting for 51% of commitments for 2021, of which US$273.4 million was from bilateral, whilst US$156.7 million was from multilateral partners.

Continued next page

(336 VIEWS)