The Sunday News
THE curtain comes down on the eventful year 2018 tomorrow and it is time to reflect upon what happened in the last 12 months especially the developments and challenges that took place in various spheres of our lives while also setting our eyes on the future with renewed hope.
The year 2018 has been full of challenges with twists and turns especially on the economic front and many Zimbabweans we believe are glad to wave it goodbye with the hope that their situations would change for the better in 2019. It is also our hope that 2019 would be a better year for the country as we are well aware that 2018 was a year of laying the foundation for prosperity by the new Government led by President Mnangagwa.
There is a lot of hope on the horizon despite the economic discomfort that is making many lose hope about the economic trajectory the country is taking. However, we believe with the fiscal discipline under the mantra “Austerity for Prosperity”, the country is on the road to recovery. We say so because signs are there that the Government is doing all in its power to change things around with our hope hinged on positive developments like reducing the domestic and foreign debt, infrastructural development, fighting corruption and the introduction of progressive policies such as devolution, which allows people to participate in the governance and running of local economies.
The President’s Zimbabwe is open for business mantra also needs no special introduction as it remains the springboard from where the country is expected to summersault into economic revival as it seeks to end the country’s years of desperate international isolation.
The good news is that the country’s sincere efforts at turning its economic fortunes are being recognised and acknowledged by global financial institutions such as the World Bank and the International Monetary Fund (IMF).
The two Bretton Woods institutions have endorsed Zimbabwe’s plan to clear $2,2 billion arrears to international creditors while President Mnangagwa has promised to revive the economy by international re-engagement and paying foreign debts that the country has defaulted on since 1999 and end the international pariah status that Zimbabwe acquired under the previous political administration.
Paying debt arrears could potentially open access to financing from the International Monetary Fund, World Bank and other development institutions.
The IMF has also projected the economy will grow at an average of 4,7 percent between next year and 2023. However, the Government is expecting higher growth rates as it targets to achieve upper middle income status by 2030.
Clearing the arrears will unlock new funding for the country, cut nearly two decades ago as Harare defaulted. Zimbabwe is in need of fresh funding to reboot the economy which suffered successive years of poor administration under the old dispensation.
As we get into 2019 it is our hope that Government will strictly adhere to the tough reforms announced in the 2019 National Budget, as it demonstrates to international financiers, particularly the IMF, that it is ready to walk the talk.
The Budget speaks to the IMF’s Staff Monitored Programme, an informal and flexible instrument for dialogue between the lender and a member country.
Finance and Economic Development Minister Professor Mthuli Ncube presented a “brave” US$8,16 billion Budget that speaks to the obtaining challenges, while also capturing the aspirations of economic transformation going forward.
Some of the bold measures include containing the budget deficit to single digit levels; abandoning the practice of incurring extra budgetary expenditure through Treasury Bills; reducing recourse to Central Bank lending; and privatisation of parastatals, among others.
The country’s population therefore waits with abated breath and optimism the judicious implementation of the promised changes that are key and will see the country turning the corner.
The austerity for posterity mantra is the country’s economic birth pangs and should not be for eternity. Relief in the form of better living conditions is expected as the Transitional Stabilisation Programme (TSP) economic blueprint itself a brilliant document unfolds and takes shape and effect on the economic challenges.
Through the Transitional Stabilisation Programme, the Government seeks to, among other things, maintain fiscal discipline and reducing the budget deficit.
We call on the country’s general populace to rally behind President Mnangagwa’s clarion calls for the creation of an investment enabling environment punctuated by financial discipline, accountability and zero tolerance to corruption.
It is our view that through collective ownership and positive involvement in the running of the country’s economic affairs, 2019 will be the year that the country will begin to reap rich rewards.
