Business Briefs

Zimbabwe’s economy to expand 5% a year until 2025

PRESIDENT Emmerson Mnangagwa unveiled a new five-year economic plan on Monday that he said is expected to deliver expansion of more than 5% through 2025.

The “National Development Strategy 1,” replaces the Transitional Stabilisation Program, which Mnangagwa said had delivered “notable and critical successes.”

While annual inflation is at 471%, it’s tapered off for three straight months and the Zimbabwean dollar has stabilized at around $82 per U.S dollar.

The new plan, known as NDS 1, will focus on “accelerated growth,” driven by agriculture, mining, manufacturing and tourism, Mnangagwa said.

Zimbabwe, which owes more than US$8 billion to international financial institutions, still hopes to pursue an arrears-clearance program with the multilaterals including the World Bank, Ncube told reporters.

Other highlights:

  • Fiscal deficits to be kept below 3% of GDP in line with targets set by the Southern African Development Community
  • Annual inflation targeted at 3% to 7% by 2025
  • Increasing international reserves to at least six months import cover by 2025
  • The creation of at least 760,000 formal jobs over the five-year period

The new economic blueprint will also serve as a precursor to the national budget statement that Finance Minister Mthuli Ncube will present to lawmakers later this month. ■

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
Back to top button
0
Would love your thoughts, please comment.x
()
x