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Second-hand vehicle imports to be banned: 2021 budget highlights

FINANCE Minister Mthuli Ncube has hinged the 2021 national budget on a good agricultural season, increased mining revenue and a stable currency.

The Finance Minister has also proposed a ban on the importation of second-hand motor vehicles aged 10 years and more, with only a few exceptional cases allowed.

He said he believes the economy will rebound from the shocks of the coronavirus and is also pinning hopes on a tourism recovery.

However, tourism growth largely depends on the Covid-19 pandemic not worsening, and the budget has an “expenditure ceiling of ZW$421.6bn [US$5.08bn]”, he said.

DOWNLOAD the FULL 2021 BUDGET HERE.

Ncube is projecting a 7.4% overall GDP growth, with year-on-year inflation by the end of 2021 reaching 9%.

These are some of the highlights of the budget:

  • ZW$46.3bn will be allocated to agriculture with the hope of growing the sector to a US$8.2bn (R124.83bn) industry;
  • The ministry of transport will receive ZW$30.1bn for infrastructure development, with dualisation of the Harare-Beitbridge highway to be allocated ZW$19bn;
  • A post-Covid recovery plan for the tourism sector will take up ZW$1.8bn;
  • Zimbabwe’s water sources countrywide are in an appalling state and Ncube resolved to allocate ZW$10.7bn — while an additional ZW$3.9bn will be set aside to deal with water issues;
  • The ministry of information technology has been allocated ZW$2bn as the country attempts integration into the digital revolution;
  • Local authorities and provincial councils will get ZW$19.5bn proposed for devolution. While the ministry of local government walks away with ZW$10.1bn;
  • The ministry of health will be allocated a staggering ZW$54.7bn, largely driven by how Covid-19 has exposed how badly the sector has been funded, and how poor its infrastructure and equipment is;
  • Higher education will receive ZW$14.4bn; and
  • The security sector, namely defence, will get ZW$23.8bn while the police under home affairs receive ZW$23.6bn.

On the importation of second-hand hand cars older than ten years, special permits for such imports will be acceptable and special waiver consideration will be made for mining, agriculture and tourism sectors.

DOWNLOAD the FULL 2021 BUDGET HERE.Zimbabwe Voice and Agencies ■

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