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The High Court has postponed a case in which five workers’ unions are suing their employer and President <a href="https://www.pindula.co.zw/Emmerson_Mnangagwa/">Emmerson Mnangagwa</a> for blocking them out of salary negotiations.
Justice Lucy Mungwari postponed the hearing to another date after failing to log in to the Integrated Electronic Case Management System (IECMS), a virtual case management system recently rolled by the Judicial Service Commission (JSC). Said Edson Matika representing the unions:
<blockquote>
The court faced technical challenges with the IECMS virtual system. This resulted in the case being postponed to Wednesday 27 September 2023 at 9 am on the same platform.
</blockquote>
The IECMS (Integrated Electronic Case Management System) was expected to bring about improvements such as electronic case filing, automatic case allocation to judges, electronic case tracking, and virtual hearings, aiming to streamline the judicial process from filing to finalisation. However, the system has faced significant resistance, with litigants and lawyers expressing concerns about delays in delivering justice.
In the current case, several unions, including the <a href="https://www.pindula.co.zw/Zimbabwe_Teachers_Association_(ZIMTA)/">Zimbabwe Teachers Association (ZIMTA)</a>, the <a href="https://www.pindula.co.zw/Progressive_Teachers_Union_of_Zimbabwe/">Progressive Teachers Union of Zimbabwe (PTUZ)</a>, <a href="https://www.pindula.co.zw/Amalgamated_Rural_Teachers_Union_of_Zimbabwe/">Amalgamated Rural Teachers Union of Zimbabwe</a>, Educators Union of Zimbabwe (EUZ), and the Civil Service Employees Association (CSEA), are suing the government, alleging violations of their labor rights.
The unions’ application challenges the Public Service Act, arguing that it undermines the labor rights protected by the constitution by granting unilateral decision-making power to the Public Service minister and the Commission. They are advocating for collective bargaining, which allows unions to negotiate employment terms, including pay, benefits, working hours, leave, and workplace safety policies.
The unions seek a court declaration that sections 19, 20, and 31 of the Act are unconstitutional as they facilitate the violation of their members’ labor rights. They argue that the Commission and the Public Service minister have failed to engage in meaningful consultations with public service employees, thus infringing on their labor rights.
The respondents in this case include the Public Service Commission (PSC), President Mnangagwa, Finance Minister <a href="https://www.pindula.co.zw/Mthuli_Ncube/">Mthuli Ncube</a>, the Public Service minister, and the Attorney General.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Pindula News

Judge Postpones Salary Case Involving President Mnangagwa After Failing To Log Into The System

Finance and Economic Development Minister Mthuli Ncube has said Zimbabwe’s economy is doing well and Zimbabweans should enjoy the “good times”.
Addressing delegates during the Institute of Chartered Accountants of Zimbabwe (ICAZ) convention held in Bulawayo last week, Ncube said the country has experienced a positive rate of growth for three years in a row. He said:
<blockquote>
We have had such a positive rate of growth for three years in a row, 8.5% gross domestic product growth in 2021, 6.5% in 2022 and this year we are expecting to achieve 6%.
Enjoy the economy and we are in good times. People are hurt by inflation, they were hurt by the previous currency weakness.
How many times have we heard about speculation that shelves would be empty, I have never seen such full shelves since 1980.
Eighty percent of the goods are locally made, I cannot remember a time when 80% of goods were locally made. Why do we have a parallel market?
</blockquote>
Ncube said the current multi-currency regime will remain in place and therefore people should not complain. Ncube said:
<blockquote>
So you have no reason to worry, or speculate about the currency because you have an option to use many currencies that are there.
I do not know of any country that is allowed to do that, you have a choice so do not complain about that choice.
Treasury is no longer using the central bank as a cash box, five years in a row; fundamentals have been put in place. It is not about the past, why the hell of having a parallel market?
If it is not to do with just speculative behaviour, civil servants and companies have found an easy way of making money.
</blockquote>
However, National Consumer Rights Association spokesperson Effie Ncube said the economic progress that Ncube is bragging about is “fictional”. He said:
<blockquote>
Despite the promises of economic revival that the government has been making, millions of Zimbabweans are still languishing in worsening unemployment, poverty and hunger.
For many, the situation is hopeless and degrading. The government should come down to where real people live and not talk about fictional and non-existent economic growth.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Mthuli Ncube Says Zimbabweans Should Enjoy The "Good Times"

Finance and Investment Promotion Minister, <a href="https://www.pindula.co.zw/Mthuli_Ncube/">Professor Mthuli Ncube</a>, reassured the public that the multicurrency system will remain in place despite rumours of the government reverting to the Zimbabwe dollar as the sole legal tender.
The current arrangement, which allows the use of foreign currencies such as USD and Rand, is guaranteed until December 2025 under Statutory Instrument (SI) 118A of 2022.
Minister Ncube stated that there is no need for concern or speculation regarding the currency situation. He emphasised that having multiple currency options is a unique advantage and urged people not to complain about this choice. The minister said:
<blockquote>
You have no reason to worry or speculate about the currency because you have an option to use many currencies. I don’t know of any country that has allowed to do that, USD, Rand, you have a choice, don’t complain about that choice. That regime is here to stay, that’s what we have, let’s carry on.
</blockquote>
<h3>Watch the video below for more.</h3>
<div class="wp-video" style="width: 540px;">
<video class="wp-video-shortcode" controls="controls" height="270" id="video-263909-1" preload="metadata" width="540"><source src="https://t792ae.c2.acecdn.net/wp-content/uploads/2023/09/Mthuli-Multi-currency.mp4?_=1" type="video/mp4"/><a href="https://news.pindula.co.zw/wp-content/uploads/2023/09/Mthuli-Multi-currency.mp4">https://news.pindula.co.zw/wp-content/uploads/2023/09/Mthuli-Multi-currency.mp4</a></video></div>
The Minister’s remarks come amid rumours that after the August 23-24, 2023 elections, the government may reintroduce the Zimbabwe dollar as the sole legal tender.
<a href="https://www.pindula.co.zw/Emmerson_Mnangagwa/">President Emmerson Mnangagwa</a>, in his inaugural speech, highlighted the importance of strengthening the local currency, which has experienced a decline since its reintroduction in June 2019. This uncertainty has led some businesses to consider leaving the country, as the Zimbabwe dollar cannot be used outside of the Southern African nation’s borders.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Finance Minister Ncube Assured The Public Of The Continued Existence Of Multicurrency System

Finance and Investment Promotion Minister Mthuli Ncube has said it is baffling that a foreign currency parallel market still exists in Zimbabwe.
The official rate is ZWL$4 712 per US$1 but on the streets, the greenback exchanges hands at above ZWL$7 000.
Most goods and services, including diesel, petrol and liquified petroleum gas, are sold exclusively in foreign currency and this has driven the appetite for the elusive greenback resulting in a thriving parallel market.
But speaking to State media, Ncube, who was reappointed Treasury boss by President Emmerson Mnangagwa despite losing in Cowdray Park, said the country has strong economic fundamentals that discourage the existence of a parallel market. He said:
<blockquote>
The existence of the parallel market in Zimbabwe is baffling. Our fundamentals are strong, we have a current account surplus, and we have had that for the last five years.
I don’t remember that happening in Zimbabwe since 1980 and most countries will kill for that. Right now we are on a strong growth trajectory.
We grew at 8.5% in 2021, and 6.5% in 2022, and again we are due to see growth in GDP growth of close to 6% in 2023 and the story continues.
We have seen a balanced budget when other countries have been reeling in deficits, we have seen a balanced budget in Zimbabwe since basically 2019, the last five years. That is what we have done.
We have seen a tight monetary policy, and positive interest rates from the central bank, so all the fundamentals are in place making sure our currency is stable and strong.
We are dealing with liquidity as we should. The central bank is using non-negotiable certificates of deposit with the right tenure to lock away liquidity from those who may seek to use it on the parallel market.
So every piece of policy that is necessary for a stable currency has been put in place and has been instituted.
It is baffling that there is still a parallel market and there is still talk of a parallel market. It shouldn’t even exist, we are doing so well.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Mthuli Ncube "Baffled" By Existence Of Forex Parallel Market, Says Zimbabwe Is "Doing So Well"

President Emmerson Mnangagwa appointed six non-constituency Ministers into his Cabinet, out of a possible seven from outside parliament. Some of the Ministers had lost their seats prior to the election.
In 2018, the non-constituency Ministers included individuals like Professor Mthuli Ncube (Finance), Professor Amon Murwira (Higher Education), <a href="https://www.pindula.co.zw/Kirsty_Coventry/">Kirsty Coventry</a> (Sports), Dr. <a href="https://www.pindula.co.zw/Obadiah_Moyo/">Obadiah Moyo</a> (Health), and <a href="https://www.pindula.co.zw/July_Moyo/">July Moyo</a> (Local Government).
The non-constituency Ministers for the period of 2023-2028 are Kirsty Coventry, Mangaliso Ndlovu, Mthuli Ncube, Ziyambi Ziyambi, Amon Murwira, and Anxious Masuka.

<ul style="list-style-type: circle;">
<li><a href="https://www.pindula.co.zw/2023/09/12/president-mnangagwa-has-defended-the-reappointment-of-minister-kirsty-coventry/">President Mnangagwa Has Defended The Reappointment Of Minister Kirsty Coventry</a></li>
</ul>
<h3><a href="https://www.pindula.co.zw/Mangaliso_Ndlovu/">Mangaliso Ndlovu:</a></h3>
Mangaliso Ndlovu, former Tourism Minister, lost his seat as his previous constituency, Bulilima East, merged into a new constituency called Bulilima. The seat was won by Dingumuzi Phuti, who was the Member of Parliament for Bulilima West. However, Ndlovu has been given a new role. To accommodate him, President Mnangagwa split the old Ministry, appointing Barbara Rwodzi as the Minister of Tourism and Hospitality, while retaining Ndlovu as the Minister of Environment, Climate, and Wildlife. Tongai Mnangagwa, the President’s nephew and MP for Harare South, was named as Ndlovu’s deputy.
<h3><a href="https://www.pindula.co.zw/Anxious_Masuka/">Dr Anxious Masuka:</a></h3>
President Mnangagwa exempted Minister Anxious Masuka from constituency politics to focus on reviving the agriculture sector. Masuka and John Basera were recognised as top performers in the 2022 evaluation. Masuka will serve as a non-constituency legislator, according to Mnangagwa’s column in The Sunday Mail and Sunday News. He wrote:
<blockquote>
I have released Minister Anxious Masuka from the distractions of constituency politics so his sole focus and sole politics relate to this one goal of transforming our agriculture for a food-secure Nation for all times.
He will be a non-constituency Member of Parliament, so he has enough time to live, think and dream of agriculture only. 
In 2022, Zimbabwe achieved a record wheat harvest as farmers delivered over 375 000 tonnes to the Grain Marketing Board (GMB).
Before last year’s output, the highest-ever wheat output since commercial production began in the 1960s was 325 000 tonnes realised in 1990.
</blockquote>
<h3><a href="https://www.pindula.co.zw/Ziyambi_Ziyambi/">Ziyambi Ziyambi</a></h3>
Ziyambi Ziyambi was reappointed as the non-constituency Minister of Justice, Legal, and Parliamentary Affairs. Despite losing in the ZANU PF primary elections, attempts to save him through a rerun indicated his continued favour. Ziyambi’s history of pushing legislation to strengthen President Mnangagwa’s power is not surprising. He demonstrated his loyalty by criticizing observer reports. His deputy is lawyer Norbert Mazungunye, who won against <a href="https://www.pindula.co.zw/Fortune_Chasi/">Fortune Chasi</a> in the ZANU PF primaries.
<h3><a href="https://www.pindula.co.zw/Mthuli_Ncube/">Mthuli Ncube</a></h3>
Ncube retains the Ministry of Finance, now called Finance and Investment Promotion. He lost his constituency seat but was reappointed as a non-constituency Minister. Despite development initiatives, criticism remains for austerity measures, currency issues, and economic instability. Public scepticism lingers regarding his ability to address these concerns. Ncube’s experience and qualifications:
– Chief Economist and Vice President of the African Development Bank. 
– Expertise in finance, economics, investment, and public policy. 
– Entrepreneur and academic. 
– Professor at the University of Oxford, teaching economic development, public policy, and business in Africa. 
– HSBC Distinguished Professor of Banking and Financial Markets at the University of the Witwatersrand. 
– Founder and former CEO of Barbican Bank. 
– Lecturer in Finance at the London School of Economics. 
– Dean and Professor of Finance at Wits Business School. 
– Board member of the South African Financial Services Board. 
– Chairman of the National Small Business Advisory Council. 
– Chairman of the Board of the African Economic Research Consortium. 
– Minister of Finance and Investment Promotion in Zimbabwe since 2023.
<h3><a href="https://www.pindula.co.zw/Amon_Murwira/">Amon Murwira</a></h3>
Amon Murwira is another non-constituency Minister who was appointed by President Mnangagwa. He is an academic and was retained as Minister of Higher Education, Science, and Technology Development. He holds a PhD in Geo-Information Science and has expertise in GIS and Remote Sensing. Murwira worked as an ecologist in Zimbabwe’s Department of Natural Resources and is a Fellow of the Zimbabwe Academy of Sciences.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

New Cabinet: President Mnangagwa's Non-Constituency Ministers

Some ZANU PF big spenders lost to the opposition in last week’s Harmonised General elections in a development that political analysts said shows that the urban electorate cannot be bought by temporary trinkets that do not positively impact their livelihoods, reported <a href="https://www.newsday.co.zw/thestandard/news/article/200015864/voters-reject-zanu-pfs-big-spenders">The Standard</a>.
ZANU PF’s big spenders who lost in the recent elections include gold dealer Pedzisai “Scott” Sakupwanya and the former Finance and Economic Development Minister Mthuli Ncube.
Sakupwanya lost to CCC’s Febion Kufahakutizwi in the Mabvuku-Tafara constituency in Harare.
The gold dealer garnered 12 038 votes against the winner Kufahakutizwi who polled 15 934 votes.
That was despite the fact that the former Mabvuku councillor spent a lot of money rehabilitating roads in the constituency and also brought the former American boxer, Floyd Mayweather to entertain residents.
Ncube lost the battle for Cowdray Park in Bulawayo to CCC’s Pashor Raphael Sibanda (28).
Ncube also reportedly spent a lot of money on development projects in the constituency.
In other parts of the country, some ZANU PF candidates drilled boreholes and dished out freebies, such as fried chicken and chips, mineral water, and soft drinks, for votes.
Stephen Chan, a professor of world politics at the University of London’s School of Oriental and African Studies, said:
<blockquote>
They will take the “chicken and chips”, but not necessarily vote for the big spender.
In Ncube’s case, everyone knows he was the minister of Finance, who presided over the economic erosion that has so severely damaged their lives.
</blockquote>
Southern Africa Programme Head for the Institute for Security Studies southern Africa programme head, Piers Pigou, said:
<blockquote>
In many respects, in areas where this has happened, it reflects one level of sophistication from the local electorate in the context of their needs that they will be prepared to accept whatever gifts or trinkets are on offer but not shift their political needs.
</blockquote>
Witwatersrand University-based political analyst Romeo Chasara said:
<blockquote>
Urban voters tend to vote for the main opposition political party with little regard for its representatives, especially at local and constituency levels.
Throughout the campaign period, supporters were encouraged to attend ZANU PF rallies and accept all that was being offered including regalia but to punish it in the ballot box.
</blockquote>
ZANU PF reportedly a huge budget for the 2023 elections, with one of President Emmerson Mnangagwa’s allies Uebert Angel telling undercover Al Jazeera journalists in “Gold Mafia” that the ruling party had US$240 million for the polls.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

ZANU PF Big Spenders Lose To CCC Candidates

After losing in the 23-24 August elections, ZANU PF MP candidate for Chinhoyi Constituency, Thomas Chidzomba, took the surprising step of dismantling the equipment for a borehole he had drilled for the community. Initially, he had locked the borehole, but later he made the decision to remove the equipment altogether.
We do not know how much Chidzomba used to drill the borehole in Chinhoyi. While the cost can vary depending on various factors such as the depth of the borehole, geological conditions, and the drilling company hired, generally, it ranges from approximately US$3,000 to US$10,000 or more. 
Chidzomba received criticism from community members who viewed his actions as a sign of his lack of dedication to the people. People expressed disappointment, suggesting that individuals like him should not hold leadership positions. Some even suggested charging him for vandalism and requiring him to restore the borehole through community service.
In contrast, other unsuccessful ZANU PF candidates, such as Pedzai Scot Sakupwanya and Finance Minister Mthuli Ncube, reportedly left the services intact. Sakupwanya even released a statement expressing his determination to fulfil the promises he made during the election campaign. He encouraged residents to reach out to his office for any assistance and pledged to support the winning opposition candidate in developing the constituency.
During election campaigns in Zimbabwe, politicians often undertake developmental projects to gain public support. These projects aim to address various societal needs and demonstrate the politicians’ commitment to improving people’s lives. Some examples include:
<ol>
<li>
Infrastructure Development: Politicians may focus on building roads, schools, hospitals, bridges, and other public infrastructure. These projects aim to enhance connectivity and access to essential services.
</li>
<li>
Water and Sanitation: Efforts may be made to provide clean drinking water, construct boreholes, install water pumps, and improve sanitation facilities in communities lacking these basic amenities.
</li>
<li>
Agriculture and Rural Development: Politicians may support initiatives to boost agricultural productivity, such as providing farming inputs, irrigation systems, and training programs. The goal is to improve food security and income generation in rural areas. ZANU PF has been doing this for a very long time.
</li>
<li>
Education and Skills Development: Projects may involve building or renovating schools, libraries, and vocational training centres. Scholarships, bursaries, and educational resources might also be provided to enhance access to quality education and skills training.
</li>
<li>
Health and Social Welfare: Politicians may focus on improving healthcare facilities, supplying medical equipment, and ensuring the availability of essential medicines. In Mabvuku/Tafara, Sakupwanya is said to have brought doctors to treat residents of varying sicknesses free of charge. They may also support social welfare programs that address poverty alleviation and the needs of vulnerable groups.
</li>
</ol>
Despite their efforts in implementing developmental initiatives, politicians can still face electoral defeat due to various factors. These include their personal history, the political party they represent, and the popularity of their opponents. Past controversies or perceived shortcomings can diminish voter trust, and corruption is a significant factor that drives voters to support alternative candidates. In the case of Sakupwanya, the Gold Mafia documentary by Al Jazeera, which implicated him in gold smuggling, may have impacted his electoral prospects negatively.
The reputation and standing of political parties can impact election results. Rural areas tend to support ZANU PF, while major cities lean towards opposition parties. This makes it challenging for opposition candidates in rural areas and ZANU PF candidates in cities, regardless of their qualifications.
Additionally, the charisma, popularity, and track record of opponents play a significant role. Winning elections requires a combination of effective policies, public perception, strategic campaigning, and the ability to connect with constituents.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Zimbabwe 2023 Elections: ZANU PF Candidate Dismantles Community Borehole After Losing

Finance Minister Mthuli Ncube has emphasised the need for immediate policy actions to mitigate the substantial risk associated with the instability of exchange rates. 
In his 2024 Budget Strategy paper released last week, Ncube highlighted the impact of such volatility on revenue collection, expenditures, debt service, and budgetary pressure caused by inflation resulting from exchange rate depreciation. Ncube said:
<blockquote>
Exchange rate volatility has been a major source of risk in the recent past, affecting revenue collection, expenditures and debt service, particularly for those items denominated in foreign currency.
To the extent that exchange rate depreciation feeds into domestic inflation, thus generates pressure on prices on the budget. In the absence of policy interventions, a 1% depreciation of the Zimbabwe dollar against the US dollar widens the fiscal deficit by about 0,1% of GDP (gross domestic product).
Government will continue to strengthen the value for money audits measures and plug loopholes in the existing procurement systems to ensure that MDAs (ministries, departments and agencies) are not overcharged in respect of payments for goods and services as well as regulate the market, having observed that some of the suppliers or contractors were manipulating the foreign exchange market.
</blockquote>
According to the World Bank, Zimbabwe’s economy was valued at US$20.68 billion at the end of 2022, indicating that a 1% exchange rate depreciation could lead to a fiscal deficit widening of approximately US$20.68 million.
Ncube further explained that the government had implemented various measures to address the risk, including weekly wholesale foreign currency sales to commercial banks. He stated that the medium-term expenditure framework aimed to limit spending to available resources and maintain the fiscal deficit below 3% of GDP.
The Treasury set a budget deficit target of ZW$2.3 trillion (US$504.85 million), equivalent to 1.5% of GDP, for 2024. Ncube highlighted the challenge of a rising wage bill and commitments to foreign currency-denominated expenditures, which crowded out funding for social sectors and infrastructure development. Wages, procurement, social needs, infrastructure spending, and climate shocks were identified as major government expenses that could increase further if the local currency depreciated.
Ncube pledged to implement value-for-money programs, increase transparency in the wage bill, adhere to the approved budget, and penalise overspending. The recent fiscal and monetary measures aimed to stabilise the foreign exchange market and align formal and informal exchange rates by addressing excess liquidity and promoting local currency usage.
Ncube mentioned the increase in money supply as a cause of local currency depreciation and emphasized the importance of tax administration initiatives to enhance compliance and revenue collection. The government also planned to review concessions and contracts and adjust fees and charges to improve revenue collection.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Finance Minister Urges Immediate Policy Actions To Reduce Risk Of Exchange Rate Instability

Finance and Economic Development Minister Mthuli Ncube has said the assumption of the Reserve Bank of Zimbabwe (RBZ)’s external debt by Treasury will make budget financing for the 2024 fiscal year difficult.
On 15 June, President Emmerson Mnangagwa issued Statutory Instrument 108 of 2023 which authorised Treasury to take over RBZ’s external debt.
<a href="https://www.newsday.co.zw/business/article/200015330/rbz-external-debt-gives-treasury-headache">NewsDay</a> reported that this was done to prevent the central bank from printing money to service its debt but since the promulgation of the statutory instrument, Treasury has acquired $7.69 trillion worth of debt accrued by the RBZ between December 31, 2022 and end of May.
The 2024 budget strategy paper released by Treasury last Friday reads in part:
<blockquote>
Government’s financing requirements are expected to remain under pressure during 2024 on account of the takeover of the central bank’s external obligations, growing informalisation and the need to sufficiently provide for NDS1 (National Development Strategy 1) programmes and projects during the medium term.
However, the government’s commitment to maintain the budget deficit within the 3% of GDP (gross domestic product) threshold will be critical in managing inflationary pressures and restoring stability in the economy.
</blockquote>
Ncube said economic growth was expected to remain positive as it was projected at 5.3%, 5.2% and 5% for 2023, 2024 and 2025, respectively, well within the NDS1 growth targets. He said:
<blockquote>
Government measures in support of macroeconomic stability, coupled with the drive towards structural economic transformation, value addition and beneficiation, are expected to sustain this positive growth trajectory.
</blockquote>
He added that increased electricity generation from the Hwange Thermal Power Station and investments by independent power producers will further boost economic activity during 2024.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Treasury Frets Over RBZ External Debt

Citizens Coalition for Change (CCC) parliamentary candidate for Cowdray Park expresses unwavering confidence in the face of ZANU PF’s aspiring National Assembly candidate Mthuli Ncube’s perceived influence. Despite Ncube hosting a prominent rally with President Emmerson Mnangagwa and ZANU PF leaders at Mkhithika grounds in Cowdray Park, Bulawayo, CCC’s Pashor Raphael Sibanda remains unperturbed, asserting his stronger connection with the local populace.
Sibanda, in an interview with Southern Eye, downplayed the significance of the ZANU PF rally, emphasising that every party has the right to organise events of various scales. He said:
<blockquote>
I heard that the opposition Zanu PF hosted a huge rally. There is nothing new about it. Every party is allowed to do something big or small. They are scared of the election because they attempted to disqualify us.
It proves to people that they fear us. They have no clear idea of where to take the country. That’s why we have load-shedding and dilapidated roads. We have won this election. In 2018 it ended in the courts and this one is starting there.
The people of Cowdray Park have to choose between light and darkness, but it’s unfortunate because my brother in the opposition (Mthuli Ncube) is opposing the will of the people.
That’s why I call them the opposition. They are manipulating the works of the government to campaign. They took the project of TelOne just like they did with the project of the Ministry of Transport. While we appreciate development, we are saying we want sustainable projects.
</blockquote>
Sibanda criticised Ncube as an outsider in Cowdray Park and urged the community to choose between progress and stagnation, highlighting the alleged manipulation of government projects by ZANU PF which he called the opposition.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

CCC Candidate Undeterred By Mthuli Ncube's Influence In Cowdray Park

Finance and Economic Development Minister Mthuli Ncube said that the completion of the US$20 million Bulawayo Students City, a student accommodation complex in Selbourne Park is an indication of economic growth, reported the <a href="https://newsday.co.zw/southerneye/local/article/200014125/students-residence-a-sign-of-economic-growth-ncube">Southern Eye</a>.
Touring the complex which is located along Gwanda Road in the city, Ncube said:
<blockquote>
This project is a public-private partnership and this shows that our public or government institutions can work closely with the private sector to solve issues such as accommodation.
When you see the size of this facility you also see economic growth, you can imagine the jobs that were created and this shows that the construction sector is contributing to overall economic growth.
We have several higher education institutions here in Bulawayo and there has been a high demand for affordable students’ accommodation and I am glad that this gap has been filled by the Bulawayo Students’ City project.
… we are making sure that the students are comfortable and live in a nice environment where they will be able to upgrade their skills and contribute towards skills and uplift the country.
</blockquote>
The project was funded by the Infrastructure Development Bank of Zimbabwe, Old Mutual, Zimnat, Motor Industry Pension Fund and others.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Completion Of Bulawayo Students City A Sign Of Economic Growth - Mthuli Ncube

According to economists and business executives, the demand for commodities and services has started to weaken due to the rising cost of living. The depreciation of the Zimbabwe dollar has eroded the buying power of many people, particularly those formally employed and earning local currency.
Economics professor <a href="https://www.pindula.co.zw/Gift_Mugano/">Gift Mugano</a> stated that disposable incomes have been significantly eroded by inflation, leaving consumers with little to spend. While 80% of transactions are now conducted in US dollars, there is not enough liquidity in that currency to stimulate demand. Mugano believes that the majority of workers in the formal and informal sectors are not earning enough to stimulate demand. He said last week:
<blockquote>
It’s not about dollarisation or the US dollar dominance, but it is about liquidity, which is quite small.
That is why we have seen prices in the US dollars going down because there is no money to stimulate demand.
Buying power has been eroded and the US dollar incomes have been typically quite low.
</blockquote>
The <a href="https://www.pindula.co.zw/Confederation_of_Zimbabwe_Industries/">Confederation of Zimbabwe Industries (CZI)</a> president, Kurai Matsheza, stated that companies are beginning to witness a massive decline in aggregate demand. He said:
<blockquote>
Certainly until and unless the pay adjustments match the depreciation (of the currency), aggregate demand naturally diminishes and more importantly, would the employers be able to match the salaries to the levels of (currency) depreciation? I don’t think so.
 What we are seeing in our businesses is the coming down of demand; it is drying up even the order quantities have also come down.
</blockquote>
However, the chief executive of the <a href="https://www.pindula.co.zw/ZNCC/">Zimbabwe National Chamber of Commerce (ZNCC),</a> Christopher Mugaga, believes that aggregate demand is not determined by incomes and salaries from the formal sector because they are insignificant and compensated by artificial demand. He said:
<blockquote>
Aggregate demand is not determined by incomes and salaries from the formal sector because they are very insignificant. That insignificant portion is compensated by artificial demand because there are already fears of shortages of products.
</blockquote>
According to some analysts, the decline in order quantities for manufacturers may not be due to weakening demand, but rather changes in trading terms. Schweppes managing director, Charles Msipa said companies are now insisting on upfront Zimbabwe dollar payments, which has become difficult for some. Msipa added that it is still too early to determine the demand patterns due to these changes, particularly in the formal sector, which predominantly uses the Zimbabwe dollar. Msipa stated that it is hard to know if the uptake of the product is low when retailers do not have their products on their shelves.
Last month, the Finance and Economic Development Minister, Prof <a href="https://www.pindula.co.zw/Mthuli_Ncube/">Mthuli Ncube</a>, announced policy measures to stabilize the economy. However, the domestic currency has depreciated by roughly 393% against the US dollar.
While some suggest dollarisation may help, Reserve Bank of Zimbabwe Governor, Dr <a href="https://www.pindula.co.zw/John_Mangudya/">John Mangudya</a>, stated that full dollarisation of the economy would lead to weakening demand for goods and services. He said the rate at which US dollars go out is faster than the rate at which they come in, and dollarisation would lead to companies scaling down and job losses.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Business Executives: Demand Weakens Due To Rising Cost Of Living

Finance and Economic Development Minister <a href="https://pindula.co.zw/Mthuli_Ncube">Mthuli Ncube</a> said that the Government is set to review the salary tax bands to reverse the erosion of incomes and increase consumer purchasing power.
This comes amid reports that the Government will soon award civil servants a salary hike in Zimbabwe dollars.
Speaking in an exclusive interview with <a href="https://www.sundaynews.co.zw/more-usd-for-civil-servants-government-to-adjust-salary-tax-bands/">The Sunday News</a>, Ncube said the Government will soon review upwards the tax bands to restore consumer purchasing power. He said:
<blockquote>
One of the issues that we need to do to support our citizens is the tax that they are paying given the high levels of inflation.
Inflation has gone up but the tax bands have not moved and it is an issue that we are looking into as government.
I will be issuing an announcement soon to move the tax bands upwards so as to give relief to citizens or employees because of high inflation. We are on to it.
This will go a long way in making sure the Zimbabwean dollar can buy more and ensure at least an individual has more money to spend in the shops.
We intend to do this every year where we move the bands upwards.
One of the things that we also did was to lower the Intermediated Money Transfer Tax (IMTT) for USD transactions.
So, all that will go a long way in giving citizens more money and transacting more cheaply.
We are not trying to change the tax rate for each band but we are moving the minimum threshold upwards and that is all we are doing, but the tax rate stays the same for each band.
So, this is really meant to give relief to those employees who are at the bottom end of the employment scale.
</blockquote>
Confederation of Zimbabwe Retailers (CZR) president, Denford Mutashu, said:
<blockquote>
Moving the tax bands upwards will provide the necessary relief to the public as inflation bites, eroding purchasing power, especially in local currency.
It will create demand but CZR urges Government to introduce all measures that contain money supply and speculation.
</blockquote>
Zimbabwe Confederation of Public Sector Trade Unions (ZCPSTU) spokesperson David Dzatsunga said:
<blockquote>
The measure to review tax bands can only make a difference if accompanied by a substantial upwards adjustment of salaries that restores the value that was there and is being lost due to the exchange rate movement.
</blockquote>
On Friday, Treasury announced that corporate tax payments will be made in the local currency as a measure to promote the use of the Zimbabwean dollar in the economy.
In a statement, Treasury said to further promote the use of the Zimbabwean dollar, for the June 2023 Quarterly Payment Date, taxpayers will be required to settle 50% of the foreign currency portion of their corporate tax obligations in local currency.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Government To Review Salary Tax Bands - Mthuli Ncube

Finance and Economic Development Minister <a href="https://pindula.co.zw/Mthuli_Ncube">Mthuli Ncube</a> is accused of damaging a water pipe near the Caravan area in Bulawayo.
Ncube reportedly hired earth-moving machines hired to rehabilitate some of the Cowdray Park roads as part of his campaign ahead of the 23 August 2023 elections.
He is the ZANU PF candidate for the Cowdray Park House of Assembly constituency.
According to CITE, City of Bulawayo councillors recently criticised Ncube for embarking on the road rehabilitation project without seeking approval from the local authority. <a href="https://twitter.com/citezw/status/1668613802386923522?s=20">Reported CITE</a>:
<blockquote>
Earth moving machines hired to rehabilitate some of the Cowdray Park roads as part of an election campaign by ZANU PF aspiring MP for Cowdray Park constituency Prof Mthuli Ncube reportedly damaged a water pipe near the Caravan area.
Water supplies in the area have been affected. Recently, Prof Ncube came under fire from Byo Councillors for embarking on the road rehabilitation project without seeking approval from the council. 
<figure class="wp-caption alignnone" style="width: 780px"><img alt="Image" decoding="async" height="1040" loading="lazy" src="https://pbs.twimg.com/media/FygbZvuacAERfcc?format=jpg&amp;name=medium" width="780"/><figcaption class="wp-caption-text">Image Credit: CITE</figcaption></figure></blockquote>
Responding to the development, CCC spokesperson Fadzayi Mahere said the City of Bulawayo has been vindicated in demanding that due process should be followed before carrying out civil works. <a href="https://twitter.com/advocatemahere/status/1668637863733350404">Said Mahere</a>:
<blockquote>
This is the chaos that ensues when you fail to follow due process. [Nick Mangwana] cried foul when Bulawayo City Council requested compliance with due process before civil works could be carried out by a candidate desperate to impress a community he knows little about. Here we are.
</blockquote>
Ncube and Deputy Industry and Commerce Minister Raj Modi were not contested in the ZANU PF primary elections held in March this year. Modi is eyeing the Bulawayo South constituency.
When Ncube was confirmed as the ZANU PF candidate for Cowdray Park, he said he was working with the Bulawayo City Council to address the issue of the sewage system in the area.
He also promised to drill more boreholes in the constituency as part of efforts to deal with the water crisis in the area.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Mthuli Ncube Accused Of Damaging Underground Water Pipe In Bulawayo

Professor Jonathan Moyo, Zimbabwe’s former Information Minister, has advised former Deputy Prime Minister Dr. Thokozani Khupe not to contest against Finance Minister Professor Mthuli Ncube for the Cowdray Park parliamentary constituency seat in Bulawayo during the 23 August 2023 general election.
Moyo argued that Ncube is the best possible candidate for Cowdray Park and the region. He argued that if the elections are about deploying the most able and best-positioned candidate with the self-evident capacity to get things done for the community, Ncube deserves the support of everyone in Cowdray Park and the region, including and particularly from Dr. Khupe.
Moyo acknowledged that his statement was not an indictment of Dr. Khupe but an acknowledgement of the objective reality on the ground in Cowdray Park and the region. He argued that Khupe has not been able to do anything differently or better for the constituency or the region since she first went to parliament in 2000. On the other hand, Moyo claimed that Ncube has everything to offer from which the community and the region have a lot to benefit. He said:
<blockquote>
All things considered, and without taking anything from or casting any aspersions on her, Dr Khupe who indeed is very much adored in the region, will be well advised not to take a dive into this one.
This is because Prof Mthuli Ncube is the best possible candidate for Cowdray Park and the region.
If truth be told, and if elections are about having communities deploy their most able and best positioned or placed sons or daughters with self-evident capacity to get things done for the community, then it is manifestly clear that Prof Ncube deserves the support from everyone not only in Cowdray Park but also across the region, including and particularly from Dr Khupe.
It is not an indictment of Dr Khupe but an acknowledgement of the objective reality on the ground in Cowdray Park and the region that there is really hardly much that she would be able to do differently or better now for either the constituency or the region which she has not been able to do since 2000, when she first went to Parliament.
If Dr Khupe returned to Parliament in August 2023, she would merely add to the dwindling minority numbers of the opposition benches. That would perhaps mean something to her personally, as it has meant since 2000, but it will not mean anything to or for Cowdray Park, let alone the region.
On the other hand, Prof Ncube has nothing much if anything to gain personally, but he has everything to offer from which the community and the region have a lot to benefit.
This is an objective fact. It’s praxis, and that’s what real politics is all about: the community using what it has [Prof Ncube] to get what it needs [development] and regular high level attention as might be necessary from time to time over the next five years.
But of course Dr Khupe has a constitutional right to stand for the parliamentary election in Cowdray Park or anywhere else for that matter. Howevet, if she stands in Cowdray Park, she should not be surprised to see many who have supported her in her trials and tribulations in the past, and who have tremendous respect for her, do the right thing to support Prof Ncube this time round.
This is because in this case, and on this occasion, support for Prof Ncube is support for everyone in Cowdray Park, the region and the nation, given the truism that the best national politics is local!
</blockquote>
Mthuli Ncube has been confirmed as the <a class="MarkdownLink_linkifiedLink__KxC9G">ZANU PF candidate</a> for the Cowdray Park constituency. He emerged as the uncontested candidate in the party primaries. Thokozani Khupe will be representing the opposition Citizens Coalition for Change (CCC) led by Nelson Chamisa.
<h3>Some Context:</h3>
Matabeleland in Zimbabwe feels it has been neglected by the government in terms of development and infrastructure projects, resulting in poor living conditions for its residents. The region has inadequate road networks, limited access to clean water, poor health facilities, unreliable electricity supply, and inadequate schools.
The region’s history of political tensions with the ruling party and being predominantly inhabited by the Ndebele ethnic group may have contributed to its neglect. Efforts by civil society organizations and community leaders to address this issue have been made, but the situation remains a challenge for many residents.
According to Moyo’s reasoning, a person of Mthuli Ncube’s status as Minister of Finance may have a better chance of changing the trajectory of development in Matabeleland compared to a mere Member of Parliament if Thokozani Khupe were to win.
<h2><a href="https://www.pindula.co.zw/">More Pindula News</a></h2>

Jonathan Moyo: Khupe Shouldn't Contest Against Mthuli Ncube For Cowdray Park

Zimbabwe’s Ministry of Finance and Economic Development has directed that exporters pay their 25% export proceeds surrender requirement to the government and not the central bank. Finance Minister Mthuli Ncube announced that the Treasury will assume foreign debt by funding the 25% surrender portion of export proceeds. This move was aimed at slowing the growth of money supply, which is causing the Zimbabwe dollar to lose value.
However, concerns have arisen regarding how the government will fund the 25% surrender portion of export proceeds, given that the local currency continues to lose value against the US dollar.
Economic commentators have suggested that increased taxes may not be adequate to pay the portion. Economic blogger Tinashe Murapata said on Twitter:
<blockquote>
Treasury has taken unprecedented steps to force exporters to pay directly surrender proceeds into its accounts in its statement, as one would, when they pay taxes, effectively fiscalising monetary matters. Treasury then claimed that it would settle the 25% surrender receipts with its own ZWL collections.
Having witnessed contractors and wheat farmers delayed payments, the market wondered where treasury would get the money. Even today, the market is wondering where treasury will get the money to pay the “foreign debts” it has assumed. Despite the propaganda of retaining the Zimbabwe dollar, the tussle reveals what is most valuable is the American dollar.
</blockquote>
Additionally, government contractors, civil servants, and farmers are demanding to be paid in US dollars. Zimbabwe’s government has often funded local debt in the past with the issuance of debt instruments.
Local financial services firms have suggested that the government create demand for the local currency to increase private sector participation on the supply side of hard currency, <a href="https://www.newsday.co.zw/thestandard/business/article/200012447/furore-over-25-export-surrender-funding">The Standard</a> reported. Local financial services firm, IH Securities in its analysis of treasury’s measures to prevent a complete slide into dollarisation, said:
<blockquote>
By allowing all customs duty to be payable in Zimbabwe dollars, we expect demand for the local currency to increase. Theoretically, this should trigger private sector participation on the supply side of hard currency as companies sell to meet obligations.
On the other hand, we might experience increased power supply disruptions as foreign currency inflows to Zesa are reduced. The treasury also limited weekly auction allotment to US$5 million so as to avoid build-up of a backlog.
</blockquote>
Despite the economic growth expected to increase by 3.8% this year, Zimbabwe still faces challenges such as power shortages, inflation, and depreciating local currency.
<h2><a href="https://www.pindula.co.zw/">More Pindula News</a></h2>

Zimbabwe Govt Directs Exporters To Surrender 25% Of Proceeds Directly To Treasury

The Zimbabwean government has announced that starting June 1, 2023, a one percent (1%) tax will be applied to all foreign payments. The move announced on May 29, 2023, is one of <a href="https://www.pindula.co.zw/2023/05/29/zimbabwe-announces-additional-measures-to-stabilize-economy-and-currency/">several measures</a> adopted by the government to address months of economic instability, rapid depreciation of the Zimbabwean dollar, and significant price hikes. Finance and Economic Development Minister, Professor Mthuli Ncube said the Treasury will:
<blockquote>
• Introduce a 1% tax on all foreign payments.
</blockquote>
The tax on all foreign payments in Zimbabwe can help the economy in multiple ways. Firstly, the revenue generated can fund public services and infrastructure development, addressing social and economic challenges. Secondly, it can reduce the outflow of foreign currency that depletes foreign exchange reserves, thereby managing its availability and flow, and reducing dependence on external sources.
Additionally, the Zimbabwean government is introducing a system to trace the origin of gold, both commercial and small-scale, in line with international standards. This follows the release of the <a href="https://www.pindula.co.zw/Aljazeera_2023_Zimbabwe_Corruption_Documentary/">Gold Mafia documentary by Al Jazeera</a>, which exposed gold smuggling and money laundering involving senior government officials, Fidelity Printers, ZIMRA, and RBZ. The country reportedly loses billions of dollars annually due to illicit gold trading through porous borders.
Ncube also stated that Treasury will now fund the Zimbabwean Dollar component of the 25% foreign currency surrendered by exporters to eliminate the creation of additional money supply. He said banks will no longer withhold any foreign currency surrendered by exporters, and all liabilities to the banks will be settled through Treasury.
The minister also stated that the Treasury will maintain the USD Cash withdrawal tax at 2%. This tax was introduced in May 2022, where the Foreign Currency Cash Withdrawal Levy for amounts above US$1,000 was reviewed from 5 cents per transaction to 2%. 
Ncube also said excise duty on fuel will now be paid for in foreign currency. This is a departure from a directive issued in 2019, as published in a Government Gazette Extraordinary dated 20th May 2019. At that time, Ncube reduced the rate of excise duty on leaded petrol and unleaded petrol to a uniform rate of $1.15 per litre and the rate of excise duty on diesel and power kerosene to a uniform rate of $0.90 per litre. The new rates were expressed in the local currency, not the US dollar. 
<h2><a href="https://www.pindula.co.zw/">More Pindula News</a></h2>

Zimbabwe Introduces A 1% Tax On All Foreign Payments

Economic analysts have welcomed the measures announced by Finance and Economic Development Minister Mthuli Ncube on Monday to stabilise the country’s economy and the depreciating Zimbabwe dollar.
Among other things, Ncube said with effect from 01 June 2023, Treasury will now fund the Zimbabwe Dollar component of the 25% foreign currency surrendered by exporters. He said this will eliminate the creation of additional money supply.
Ncube also announced that weekly auctions will be limited to a maximum of US$5 million and winning bids at the auction will be paid within 24 hours.
Commenting on the development, economic analysts ZimBollar Institute, said the measures are progressive if “followed to the letter and spirit”. <a href="https://twitter.com/ZimBollar/status/1663272861497212928?s=20">Said ZimBollar Institute</a>:
<blockquote>
To understand the logic behind the (Ministry of Finance and Economic Development) MoF’s measures, one needs to appreciate the mechanics of the foreign currency auction system in terms of its funding. Here we make an attempt to explain.
Exporter A produces and exports goods worth of USD1m. On processing their CD1s, their Bank takes 25% or USD 250k in line with the 25% foreign currency retentions for onward transmission to the RBZ
On receipt of the USD250k, the RBZ is mandated to settle Exporter A with the equivalent of USD250k in ZWL local currency. This effectively increases the supply of ZWL in circulation through the money creation cycle.
The USD250k is then subsequently utilized to settle auction bids at the RBZ Tuesday auction system per the Dutch auction. Since this money is used to settle imports, it effectively represents a drain on forex, since it leaves the country’s borders on payment.
Now look at this: The same ZWL that the RBZ injects as it settles forex retentions will find its way back to demand for foreign currency, hence the huge demand for cheap forex that has remained a perennial phenomenon.
Enter Mthuli’s interventions:
By allowing duties and customs to be settled in ZWL, the MoF has created a demand for the ZWL. Using the same ZWL, Gvt will have the capacity to settle the 25% USD retentions without recourse to printing since they already sit on tax revenue
Three things will happen:
a) Demand for ZWL dollar increases and effectively contains the exchange rate
b) Speculative demand for the USD decreases on account of the auction limit of USD5m
c) By using tax revenues to settle forex retentions they will contain money supply.
Verdict
Masterstroke if followed to the letter and spirit.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Mthuli Ncube's Measures To Stabilise Zimbabwe Dollar A Masterstroke - Analysts

The Finance and Economic Development Minister of Zimbabwe, Professor Mthuli Ncube, has announced additional measures to stabilize the country’s economy and the depreciating Zimbabwe dollar.
In a statement seen by Pindula News, Ncube said the additional measures include increasing the retention of domestic foreign currency sales to 100%, lifting all restrictions on the importation of basic goods, promoting the use of domestic currency, and introducing a system to manage the traceability of gold.
Ncube added that the government will also assume all <a class="MarkdownLink_linkifiedLink__KxC9G">foreign currency debts</a> from the <a class="MarkdownLink_linkifiedLink__KxC9G">Reserve Bank of Zimbabwe</a>, create a debt redemption fund, and tighten <a class="MarkdownLink_linkifiedLink__KxC9G">monetary policy</a> to reduce bank lending and money creation.
Additionally, the government will continue to review civil servant salaries and allowances in line with these developments and policy measures. He added that the government remains committed to maintaining macroeconomic stability, preserving the <a class="MarkdownLink_linkifiedLink__KxC9G">purchasing power</a> of the <a class="MarkdownLink_linkifiedLink__KxC9G">Zimbabwe dollar</a>, and restoring trust and confidence in the economy. We present the statement below:
<blockquote>
<h2>STATEMENT ON POLICY MEASURES TO STABILISE THE ECONOMY</h2>
Introduction
1. Under the National Development Strategy 1, Government has made considerable progress in fostering domestic macroeconomic stability by implementing a broad range of fiscal and monetary stabilisation measures.
2. In order to continue on the macroeconomic stabilisation front, Government on the 21 of May 2023, introduced the following additional measures to curb the further depreciation of the local currency and increases in prices marked in domestic currency: 
• Increasing the retention on domestic foreign currency sales to 100%- This has resulted in domestic businesses accessing more foreign currency from the market and this potentially translating into additional US dollar deposits in the banking system; 
• Adoption of all external loans by Treasury- This process is well under way and will result in all external liabilities being funded transparently through the National Budget; 
• Increasing Consumers’ Access to Basic Commodities- Lifting all restrictions on importation of basic goods which has promoted competition thereby resulting in a reduction in prices; and 
• Promotion of use of domestic currency by Government Agencies which is expected to further increase the demand for the local currency.
Following on the decision for adoption by Treasury, conferring full responsibility on it, of repaying all foreign currency denominated loans contracted through the Reserve Bank of Zimbabwe, Government announces supportive measures as follows:
Government will implement the following measures as from 01 June 2023: 
• Treasury will now fund the Zimbabwe Dollar component of the 25% foreign currency surrendered by exporters, in order to eliminate the creation of additional money supply. The foreign currency collected from the 25% that is surrendered, will now be collected by Treasury and utilised in servicing the foreign currency loans assumed from the Reserve Bank of Zimbabwe. Banks will no longer withhold any foreign currency surrendered by exporters, and all the liabilities to the banks will be settled through Treasury. 
• Introduce a 1% tax on all foreign payments. 
• Maintain the USD Cash withdrawal tax at 2%. 
• Through Fidelity Gold Refinery, introduce a system to manage traceability of gold from its origin, both commercial and small scale, in line with international standards. 
• All excise duty on fuel will now be paid for in foreign currency.
3. In order to encourage banking of foreign currency, which is mainly in the informal sector, while promoting use of the local currency Government will: 
• Reduce the local interbank foreign transactions IMT tax to 1% ; 
• Reduce the POS IMT tax in foreign currency to 1%; 
• Promotion of use of the domestic currency: 
i. All Government Agencies including Parastatals will substantially now collect their fees in local currency; 
ii. Payments to ZESA by non-exporters will be made in the local currency; and 
ii. All Customs Duty to be payable in local currency, with the exception of designated or luxury goods. and where the importer opts to pay in foreign currency.
4. Treasury will assume all foreign currency debts from the Reserve Bank of Zimbabwe on 01 June 2023.
5. Government shall create a debt redemption fund to service other external liabilities in line with the arrears clearance program. These will be funded through new levies and other resource mobilisation initiatives.
Other Supportive Policy Measures for Immediate Implementation 
6. The above will be supported by the following policy measures: 
• All export proceeds that remain unutilised after 90 days will be liquidated onto the interbank market. 
• The weekly auction will be limited to a maximum of US$5 million. • As from 1 June 2023, winning bids at the auction will be paid within 24 hours of award. 
• All public foreign currency debts will be contracted by Government and will be the responsibility of Treasury. 
• There will be tightening of monetary policy in order to reduce lending and hence money creation by banks. 
• All manufacturers selling general goods, such as cement, milk, soft drinks, etc for the export market, will now be required to charge VAT, which is refundable by ZIMRA after exporting.
7. Government will continue to sterilise excess liquidity already injected into the economy through issuance of Treasury bills, whilst the Reserve Bank will also continue to sterilise through appropriate monetary policy tools. 
8. With regards to externalisation of funds and transfer pricing, Government will strengthen surveillance and monitoring, complemented by a robust foreign currency payment system and information sharing system between financial institutions and ZIMRA.
9. Government will continue to review Civil Servants salaries and allowances in line with the above developments and policy measures, including increasing the threshold of the local currency IMT tax.
Conclusion
The assumption of the external obligations by Treasury and implementation of non-inflationary financing of the liabilities, coupled by sourcing of additional resources. will go a long way in reducing money supply growth and its impact on exchange rate depreciation and price increases.
Government remains firmly committed to the maintenance of macro-economic stability, the preservation of the purchasing power of the Zimbabwe dollar and the restoration of trust and confidence in the economy.
</blockquote>
<h2><a href="https://www.pindula.co.zw/">More Pindula News</a></h2>

Zimbabwe Announces Additional Measures To Stabilize Economy And Currency

The member of Parliament for Harare East, <a href="https://www.pindula.co.zw/Tendai_Biti/">Tendai Biti</a> of the opposition party CCC, has challenged the Finance Minister, <a href="https://www.pindula.co.zw/Mthuli_Ncube/">Mthuli Ncube</a>, to provide a detailed explanation before Parliament about Statutory Instrument 127 and <a href="https://news.pindula.co.zw/2023/03/03/govt-adopts-blended-inflation-rate-based-on-usd-zim-dollar/">blended inflation. </a>
SI 127 of 2021 amends the Exchange Control Act and the Bank Use Promotion Act, imposing heavy administrative penalties for breaches of special provisions of the Act.
The SI prohibits businesses from selling goods and services or quoting them at an exchange rate above the foreign currency auction system rate. It also punishes businesses for issuing clients with Zimbabwean dollar receipts for payment received in foreign currency.

<ul>
<li><a href="https://www.pindula.co.zw/2023/03/08/blended-inflation-rate-is-pure-undiluted-heresy-biti/">Blended Inflation Rate Is “Pure, Undiluted Heresy” – Biti</a></li>
<li><a href="https://www.pindula.co.zw/2023/03/15/blended-inflation-rate-problematic-for-economy-experts/">Blended Inflation Rate Problematic For Economy – Experts</a></li>
<li><a href="https://www.pindula.co.zw/2023/04/13/accountants-engage-govt-over-weighted-blended-inflation-rate/">Accountants Engage Govt Over Weighted Blended Inflation Rate</a></li>
</ul>
Biti has demanded an explanation from Ncube on how he crafted the method of mixing currencies in the country. The SI has been viewed as an attempt to curtail the exchange rate on the parallel market to stabilize the local currency. However, business leaders view it as a regulation that could lead to shortages of goods and akin to price controls. Regulations promulgated under Presidential Powers expire after six months, and permanent legislation is expected to be enacted to replace them before the expiry date. Biti said:
<blockquote>
I stood up to speak about inflation. I know we have spoken about inflation before but the reason why I stood up is because of Statutory Instrument 127 of 2021 that speaks of inflation, which is calculated on goods and services in US dollars and RTGS.
In economics, inflation is a measurement of the rise in prices and only one currency is used, whether USD or RTGS or local currency, and you cannot mix currencies. So, the Minister of Finance who is a professor of economics should come to this august House and explain where he is getting this mixing of currencies, RTGS and US dollars, and why he is calling it blended inflation.
</blockquote>
Speaker of the National Assembly Jacob Mudenda said Ncube should appear before Parliament to explain SI 127.
Blended inflation is a method used to calculate inflation by taking into account both foreign and domestic currencies in countries with multiple currencies in circulation.
The Reserve Bank of Zimbabwe uses this method to measure the rate of inflation by converting prices of goods and services into a common currency, such as the US dollar. The prices are then aggregated and weighted to calculate inflation.
Although blended inflation is considered more accurate than using a single currency, it can also mask the impact of inflation on specific sectors of the economy, which can lead to a distortion in the inflation data. Therefore, the use of blended inflation can be controversial.
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Biti Challenges Ncube To Explain SI 127 And Blended Inflation In Parliament

ZANU PF’s candidate for Cowdray Park constituency in Bulawayo, Mthuli Ncube, has intensified his election campaign in the sprawling suburb.
Ncube says he has embarked on infrastructure development projects, including the resurfacing of roads as well as introducing training programmes for youths.
According to <a href="https://businesstimes.co.zw/mthuli-intensifies-election-campaign-in-cowdray-park/">Business Times</a>, Cowdray Park suburb has over 75 000 residents, making it the second-largest suburb in Zimbabwe after Budiriro in Harare.
Speaking at a recent meeting with Cowdray Park residents, Ncube said he had brought relief to commuters by rehabilitating roads. He said:
<blockquote>
Most commuter omnibuses could not get to certain areas. We have been working on the road network. We have those being upgraded and graded as well.
The residents of Cowdray Park were walking three to four kilometers to get to the transportation areas. That’s a thing of the past.
This has given a lot of relief to the elderly so that’s critically important.
We want to turn Cowdray Park into a smart city and from now on we really want to be serious about it.
</blockquote>
Ncube also said he was working with the Bulawayo City Council to ensure that all houses in the suburb are connected to the sewer system.
He added that 12 electricity transformers have been delivered so far out of an expected 38 in order to connect over 90 00 households to the national grid.
Ncube, who is the Minister of Finance and Economic Development, was uncontested in Cowdray Park during ZANU PF’s recent primary elections.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Mthuli Ncube Pledges To Make Cowdray Park A Smart City

The recent move by the Government to suspend import duty and import value-added tax (VAT) on selected groceries is something Zimbabweans have become familiar with as it happened exactly 12 months ago.
The suspension was lifted in late November 2022, which means it has taken the Government just six months to reverse its decision amid soaring prices and a runaway exchange rate.
On Friday, 12 May, the Government suspended import duty and import value-added tax (VAT) on 11 basic grocery items: maize meal, rice, milk, flour, sugar, salt, cooking oil, petroleum jelly, toothpaste, bath soap and washing powder.
The suspension of the import duty and import VAT shall be valid for six months from 12 May 2023.
The development evokes a sense of déjà vu as similar measures to address rampant price increases were put in place in May 2022.
In May last year, Ministry of Finance and Development permanent secretary George Guvamatanga directed Zimbabwe Revenue Authority (ZIMRA) then acting Commissioner-General Regina Chinamasa to suspend duty on selected products for a period of six months with effect from 17 May 2022. Wrote Guvamatanga:
<blockquote>
Reference is made to the press statement by the Minister of Finance and Economic Development where a pronouncement was made regarding the introduction of measures aimed at ensuring access to affordable basic commodities, in view of the recent substantial increases in prices of locally manufactured products.
In view of the above, Zimbabwe Revenue Authority is hereby authorised to suspend duty on the following products for a period of six months with effect from May 17, 2022.
</blockquote>
Rice, flour, cooking oil, margarine, salt, sugar, maize meal, milk powder, infant milk formula, tea (whether or not flavoured), petroleum jelly, toothpaste, bath soap, laundry bar were to be imported duty-free.
Finance and Economic Development Minister Mthuli Ncube scrapped the suspension of import duty when he presented the 2023 national budget on 24 November 2022.
In his budget presentation at the New Parliament Building in Mt Hampden, Ncube said:
<blockquote>
Mr speaker sir, the government suspended customs duty on basic commodities in order to cushion consumers from unjustified price increases, this measure has contributed to stability in prices of basic commodities, hence the suspension which expired on November 16, 2022 will not be extended.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Six Months Ago Govt Re-imposed Duty On Basic Groceries

Economic commentators have condemned the measures announced by Finance and Economic Development Minister Mthuli Ncube last week to stablise the exchange rate and prices of goods and services.
Some of the measures included the removal of duty on 11 selected basic grocery items, allowing businesses to keep 100% of their locally generated forex revenue, and a pledge to fine-tune the foreign exchange auction system so that it operates on a pure Dutch auction basis.
Speaking to <a href="https://www.newsday.co.zw/thestandard/business/article/200011510/it-will-not-work-industry-tells-ncube">Standardbusiness</a>, economic analyst Vince Musewe said Ncube’s measures are reactive and will not work. He said:
<blockquote>
An economy cannot be managed in a reactive mode from crisis to crisis, but sadly that is what is happening.
There is no debate that Zimbabweans prefer the US dollar and those with US dollars will continue to demand a premium.
Despite the country generating US$12 billion per annum, the appetite for the US$ dollar will never be satisfied and it is clear the informal sector does not react to economic policy measures but operates to maximise profits.
This has resulted in a supermarket economy where everyone is selling some imported trinkets to make a living and importing basic goods kills local industry.
The scenario has not changed where the rate goes up inflation goes up and the rate goes up creating a vicious cycle.
It is time to realise that the dollarisation of incomes is the only sensible thing to do to cushion citizens.
Salaries and wages must now be in US dollars and companies must freely charge in US dollars.
The economy has rejected the Zimbabwe dollar; nobody wants it.
</blockquote>
Confederation of Zimbabwe Industries (CZI) chief executive officer Sekai Kuvarika said:
<blockquote>
I think we need to give the stabilisation measures a chance before we destabilise the manufacturing sector by flooding the market with cheap imports.
You also have to remember that these imports are coming from environments that are not the same as we are.
</blockquote>
She said there was no shortage of basic commodities in the country.
Another economic analyst Stevenson Dhlamini said:
<blockquote>
It’s difficult to conclude whether they are effective or non-effective, but it’s showing that they are appreciating that we are in a crisis.
There is a clause where the minister says he will increase the interest rates to curb inflation in the short term.
My belief is that the interest rates and the parallel market have to continue to chase each other.
The more you increase interest rates the parallel market simply increases its premiums to compensate for the higher interest rates.
So the question can be: is the interest targeting the best or the most effective response at this stage or rather we should be addressing the sources of money supply growth?
</blockquote>
Meanwhile, Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya said that the measures will support the issuance of gold coins and tokens by the central bank.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

It Will Not Work, Economists Tell Mthuli Ncube

Former Finance Minister <a href="https://www.pindula.co.zw/Tendai_Biti/">Tendai Biti</a> has said the latest policy announcements by the Ministry of Finance demonstrate a lack of leadership in Zimbabwe.
Finance Minister <a href="https://www.pindula.co.zw/Mthuli_Ncube/">Mthuli  Ncube</a> announced a<a href="https://www.pindula.co.zw/2023/05/12/finance-minister-announces-measures-to-stabilise-exchange-rate-and-macroeconomy/"> cocktail of measures</a> meant to stabilise the exchange rate and macroeconomy. In a statement seen by Pindula News, Ncube announced several measures, including the exemption of all domestic sales in foreign currency from the 15% <a class="MarkdownLink_linkifiedLink__KxC9G">surrender requirement</a>, the transfer of all external loans to the Government’s Treasury, further fine-tuning of the <a class="MarkdownLink_linkifiedLink__KxC9G">Foreign Exchange Auction System</a>, lifting of restrictions on the importation of basic goods, and the creation of a supportive <a class="MarkdownLink_linkifiedLink__KxC9G">interest rate environment</a> domestically.
However, Biti believes that failed exchange policies are the root cause of macro instability and that de-dollarization has failed. Biti suggests that Zimbabwe should dollarize and float the Zimbabwean dollar, paying civil servants and pensioners in US dollars. He also opposes the use of gold coins and gold-backed digital currencies, which he views as a means of laundering and looting.
Biti who is a senior official in the opposition Citizens Coalition for Change (CCC) opposes the removal of Export Surrender Requirements. He also argues that the assumption of RBZ debt is unconstitutional and morally reprehensible. He believes that all debt assumptions must have prior parliamentary approval and suggests replacing the Central Bank with a Currency Board. He wrote on Twitter:
<blockquote>
The defining feature of all failed incompetent regimes is the capacity for adhocratic incoherent panicky decisions. The latest policy announcements by the Ministry of Finance are a leviathan manifestation of the crises of leadership arresting Zim.
Four measures have been announced namely 1) removal of duty on basic imports 2)assumption of RBZ debt 3)removal of Export Surrender Requirements 4) pre-announced envelope on FX auction With respect these measures will not halt the collapse of the ZWL$ nor reverse the meltdown.
We contend that the real cause of the macro instability is the failed exchange policy. De – dollarization has failed &amp;failed in absolute terms . To achieve stability &amp; to contain inflation regime must dollarise &amp; float the Zim $. Civil servants &amp; pensioners must be paid in US$
Gold coins &amp; gold coin-backed digital currency are a zany instrument of laundering &amp; looting. They must be scrapped immediately with our gold being used to stock up reserves. The Dutch auction system has been another means of theft &amp; capture &amp; must be abandoned forthwith.
Only in Dec&amp;against our protests Mthuli Ncube scrapped duty-free imports of basic commoditie.5 months on the perennial flip-flopper reverses his decision. The challenge of adhocratic move is that it will not address inflation nor exchange rate collapse. Only dollarisation can
Furthermore, a discussion with local manufacturers was required to avoid hurting some strategic sectors of food industry.We have consistently called for removal of Export Surrender Requirements but removing same now when there so much imbalance will not help this economy
The decision to assume RBZ debt is not only unconstitutional but morally reprehensible. This RBZ has been guilty of corrosive Quasi Fiscal Activities outside parliamentary scrutiny. It’s huge debt &amp; relationship with the opaque Afrexim Bank is odious &amp; incestous.
All debt assumptions must have prior approval of parliament &amp;this move is clearly unconstitutional. More than that it’s wrong to continue to saddle taxpayers with opaque Central Bank debt. This Bank is rogue&amp;needs to be replaced by a Currency Board. Truth is this lot has failed.
</blockquote>
A <a class="MarkdownLink_linkifiedLink__KxC9G">Currency Board</a> is a <a class="MarkdownLink_linkifiedLink__KxC9G">monetary authority</a> that issues notes and coins fully backed by a foreign reserve currency. It differs from a <a class="MarkdownLink_linkifiedLink__KxC9G">Central Bank</a> (like RBZ) in that it does not have the authority to create money or conduct monetary policy.
Its sole focus is maintaining the exchange rate between the local currency and the <a class="MarkdownLink_linkifiedLink__KxC9G">reserve currency</a>. A Currency Board is generally considered more transparent and less prone to political influence than a Central Bank.
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Biti: Govt's Measures To Stabilise Exchange Rate Show Zimbabwe's Lack Of Leadership

The Finance and Economic Development Minister, Professor Mthuli Ncube, declared that <a class="MarkdownLink_linkifiedLink__KxC9G">import licenses</a> will no longer be required for all basic goods entering the country and they will also be exempt from <a class="MarkdownLink_linkifiedLink__KxC9G">import duties</a> and taxes.
In a statement seen by Pindula News, Ncube said the move is meant to enhance the supply of basic goods to the public. Reads the statement:
<blockquote>
Lifting of All Restrictions on importation of Basic Goods.
In order to enhance the supply of basic goods to the public, all basic goods will no longer be subject to import licences, and will also come into the country free of import duties and taxes.
</blockquote>
The majority of <a class="MarkdownLink_linkifiedLink__KxC9G">Zimbabwe</a>‘s imports are subject to the open general import license (OGIL) and do not necessitate special permits or licenses, with the Ministry of Industry and Commerce managing the process for products that do require them.
Furthermore, the government mandates certain documentation for importing goods, including a <a class="MarkdownLink_linkifiedLink__KxC9G">bill of entry</a>, pertinent invoices, shipping documents such as a <a class="MarkdownLink_linkifiedLink__KxC9G">bill of lading</a>, freight statements, and <a class="MarkdownLink_linkifiedLink__KxC9G">certificates of origin</a>, particularly for products entering from <a class="MarkdownLink_linkifiedLink__KxC9G">SADC member states</a> and the <a class="MarkdownLink_linkifiedLink__KxC9G">Preferential Trade Area</a> (PTA) of Eastern and Southern Africa.
Imposing these requirements <a class="MarkdownLink_linkifiedLink__KxC9G">discouraged imports</a> and promoted buying from local producers, but as the local industry operates below capacity, it fails to meet local demand, resulting in some dealers with a monopoly on scarce commodities increasing prices arbitrarily. Thus, lifting all restrictions on importing crucial goods is an effort to curb the steep price hikes.
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Zimbabwe Exempts All Basic Goods From Import Licenses, Duties And Taxes

The Finance and Economic Development Minister, Professor Mthuli Ncube, has announced measures aimed at stabilising both the <a class="MarkdownLink_linkifiedLink__KxC9G">exchange rate</a> and macro economy. In a statement seen by Pindula News, Ncube announced several measures, including the exemption of all domestic sales in foreign currency from the 15% <a class="MarkdownLink_linkifiedLink__KxC9G">surrender requirement</a>, the transfer of all external loans to the Government’s Treasury, further fine-tuning of the <a class="MarkdownLink_linkifiedLink__KxC9G">Foreign Exchange Auction System</a>, lifting of restrictions on the importation of basic goods, and the creation of a supportive <a class="MarkdownLink_linkifiedLink__KxC9G">interest rate environment</a> domestically. Reads the statement:
<blockquote>
MEASURES TO STABILISE THE EXCHANGE RATE AND MACROECONOMY
Introduction The Government of Zimbabwe, through the implementation of the NDS1, has gone a long way on the economic reform agenda.
The Zimbabwean Economy remains on a firm growth path, with all key productive sectors registering positive growth. 
After registering about 4% growth in GDP for 2022, we anticipate that Growth for 2023 will be significantly higher than the initial projection of 3.8%.
Food security has been assured, underwritten by a deliberate policy mix from Government and supported by two successive good rainy seasons. On the back of the re-introduction of the Zimbabwe dollar, which brought about clarity to currency markets together with a number of advantages to the economy, together with a supportive policy framework, industrial capacity utilisation and productivity continue to grow, with about 70% of goods on the shelves now being locally produced. 
In addition to this widely visible and tangible competitiveness of the local industry, which is evidenced by the notable growth in manufactured exports and observable import substitution effects, there is also notable growth recorded in the hard goods and intermediate goods manufacturing sectors.
The broader economy, including the mining sector, has particularly benefitted from having a significant realignment of domestic costs from the rebasing of wage costs in particular to the domestic currency. 
We have seen an increase in unofficial (shadow) foreign exchange reserves as private holdings of foreign exchange which are available for use in both domestic and external trade transactions as reflected by healthy levels of foreign currency deposits in the banking sector. 
Foreign currency receipts across all categories of inflows have increased by at least 100% compared to a few years ago and are at their highest levels in years, with total foreign currency receipts expected to top USD13billion this year. 
However, despite all the underlying strong fundamentals, we have now seen a resurgence of macro-economic instability, with domestic inflation being driven primarily by the skewed preference for US Dollars as a savings currency. This has put enormous pressure on the exchange rate as the skewed preferences have continued to increase the velocity of the Zimbabwe dollar.
This phenomenon has seen a growing USD cash economy and it is estimated that a large portion of domestic transactions are now being conducted in foreign currency. 
It is against this background and following wide consultations with the private sector and other stakeholders, that Government now announces the following policy measures: 
1. 100% Retention of Domestic Foreign Currency Earnings. 
In order to promote the banking of domestic sales foreign currency in the banking system, the Reserve Bank of Zimbabwe will with effect from 15 May 2023, exempt all proceeds from domestic sales in foreign currency from the 15% surrender requirement. 
2. Adoption of All External Loans by Treasury. 
All external loans to the Government will now be transferred from the Reserve Bank of Zimbabwe to Treasury. 
3. Enhanced Foreign Exchange Auction System. 
The Foreign Exchange Auction System will be further fine-tuned and will now auction a pre announced envelope, on a pure Dutch auction basis. 
4. Lifting of All Restrictions on importation of Basic Goods. 
In order to enhance the supply of basic goods to the public, all basic goods will no longer be subject to import licences, and will also come into the country free of import duties and taxes. 
5. Supportive Interest Rate Environment Domestic 
Interest rates remain a variable of focus and are one of the main tools available for monetary authorities to discourage speculative borrowing and to reduce the velocity of the Zimbabwe dollar and thus promote stability. Measures to restore real savings rates in the economy are therefore necessary.
The Reserve Bank of Zimbabwe, through its Monetary Policy Committee, shall continue to review the domestic interest rate framework to allow domestic currency savings interest rates to be above the perceived rate of expected devaluation for holding ZWL balances, to be attractive to savers.
In the short-term, Government needs to immediate’ interest rates of tenors up to 6 months to rise sharp rates remaining low, to reflect future inflation exp squeeze out speculative demand for both ZWL and USD.
6. Promotion of the Use of the Domestic Curren Agencies.
Government will endeavour to promote the growing and committed use of the local currency for domestic transactions by ensuring that levies and fees charged by its affiliated agencies and service providers, are to be paid for in local currency. 
7. Gold Coins and Gold-Backed Digital Tokens.
The Government of Zimbabwe is very pleased with the uptake of both the physical gold coins since they were introduced as well as the more recently issued Gold Backed Digital Tokens. Government, through the Reserve Bank of Zimbabwe, shall continue to assure public confidence in both instruments by ensuring that at all times, the Gold Coins and Gold Backed Digital Tokens remain fully backed by physical gold reserves.
</blockquote>
Ncube also affirmed that the Zimbabwean Government is dedicated to upholding macro-economic stability and eradicating detrimental and destabilising <a class="MarkdownLink_linkifiedLink__KxC9G">arbitrage conditions</a> that have plagued the economy and harmed the general population.
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Finance Minister Announces Measures To Stabilise Exchange Rate And Macroeconomy

Former Finance Minister <a href="https://www.pindula.co.zw/Tendai_Biti/">Tendai Biti</a> criticized Treasury boss <a href="https://www.pindula.co.zw/Mthuli_Ncube/">Mthuli Ncube</a> over the falling Zimbabwe dollar. Biti said there is widespread rejection of the local currency in the market and an urgent need to address the failed de-dollarization experiment. He wrote on Twitter:
<blockquote>
There is rampant rejection of the local currency in the market. Local manufacturers are openly rejecting the RTGS [real-time gross settlement], proving once more that an economy will never be run by statutory instruments. There is an urgent need to address the failed de-dollarisation experiment. What a disaster.
Zimbabwe has remained trapped by multiple crises — economic, political and social. The decay of infrastructure and the collapse of public services, the mismanagement of the exchange rate, the closure of political space, point to the fact that this lot is the worst regime in the history of governments.
</blockquote>
Despite government efforts, including the introduction of gold coins, the local currency is unstable and trading at over 200% premium on the parallel market. Some businesses have abandoned the local currency and only accept US dollars, despite threats from the government.
Economists blame the Zimbabwe dollar’s continuous decline on the shortage of US dollars, which is causing the local currency to lose value.
The declining currency can have significant negative impacts on the country’s economy, including:
1). Inflation: A weakening currency can lead to higher inflation as the cost of imported goods and services rise, which can reduce people’s purchasing power and increase the cost of living.
2). Reduced investment: Investors may be less willing to invest in a country with a weak currency, which can limit economic growth and job creation.
3). Reduced government revenue: The government’s revenue is often collected in local currency, so a weakened currency can reduce the government’s ability to fund public services and infrastructure projects.
4). Increased debt: A weaker currency can make it more difficult for the government to service its debt, which can lead to defaults and other financial problems.
5). Reduced international trade: A weaker currency can make it more expensive for local businesses to import goods and services, which can reduce international trade and limit economic activity.
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Biti Criticizes Mthuli Ncube Over Falling Zimbabwe Dollar

Zimbabwe intends to join the New Development Bank (NDB), the multilateral bank set up by the BRICS states, to expand the country’s sources of capital for infrastructure development.
This was revealed by Finance and Economic Development Minister Mthuli Ncube in the United Kingdom (UK) during an interview with CGTN Africa.
CGTN Africa is the African division of China Global Television Network, the English-language news channel run by Chinese State broadcaster China Central Television (CCTV).
Zimbabwe is failing to access funding from some multilateral financial institutions such as the International Monetary Fund (IMF) due to its huge external debt.
The external debt, expected to be roughly US$17.5 billion including arrears, according to <a href="https://www.businessweekly.co.zw/zim-turns-to-brics-bank-for-funding/">Business Weekly</a>, has resulted in foreign investors shunning Zimbabwe due to its high-risk profile. Said Ncube:
<blockquote>
We have made contact with the management; we have made contact with the current shareholders for us to progress that initiative.
We look forward one day to then being accepted into the BRICS bank. We are trying to expand sources of capital, we are trying to expand various platforms where we can source additional capital for development.
What we want to achieve is just (an) additional source of capital for infrastructure development and for the development agenda; to move the country forward.
We recognise that we have to keep expanding sources of capital and the BRICS bank is one such source of capital.
</blockquote>
The New Development Bank, formerly referred to as the BRICS Development Bank, is a multilateral development bank established by the BRICS states.
It was established to mobilise funds for infrastructure in emerging markets and the developing world.
The NDB originally served the five BRICS countries — Brazil, Russia, India, China and South Africa — and has now added Bangladesh, the United Arab Emirates and Egypt.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwe Turns To New Development Bank For Funding

Finance and Economic Development Minister Mthuli Ncube has threatened to hike Zimbabwe’s policy rate beyond 200% if companies continue engaging in parallel market activities.
Ncube was speaking during the Zimbabwe International Trade Fair (ZITF) business conference in Bulawayo this week. He said:
<blockquote>
We have responded to inflation domestically by raising interest rates.
The interest rates have been quite high. Of late, we have started bringing down the interest rate.
But I’m now wondering about the recent hike in the exchange rates in other (black) markets. Should I increase the interest rates?
Please stop pushing that parallel market (rate), because what we will do is increase the interest rates to 200% and beyond.
Because that is what we know; so desist from operating in that market and pushing up the parallel rate. It is because this is very costly to everyone.
</blockquote>
Last year, the Reserve Bank of Zimbabwe (RBZ) hiked the policy rate to 200%.
It was later reduced to 150%, and further to the current 140% but this is still considered punitive by firms.
The policy rate (benchmark or key interest rate) is the interest rate at which a central bank lends money to commercial banks in its country.
The policy rate is set by the central bank’s monetary policy committee and is used as a tool to control inflation and stabilise the economy.
Hiking the policy rate makes borrowing becomes more expensive for commercial banks and this can lead to a decrease in lending and economic activity, which can help to control inflation by reducing demand for goods and services.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Mthuli Ncube Threatens Fresh Interest Rate Hike

The Ministry of Finance and Economic Development has given companies who were paid but didn’t deliver their goods or services a deadline of 7 days to do so.
Finance Secretary, <a href="https://wiki.pindula.co.zw/George_Guvamatanga">George Guvamatanga</a> said if they don’t deliver, they will face legal action and their personal property may be taken away. These companies are sometimes called “air suppliers” because they deliver nothing.
Guvamatanga was speaking in Harare on Monday 24 April 2023 at the launch of the International Public Sector Accounting Standards (IPSAS) and the Zimbabwe Financial Reporting Manual presided over by Finance Minister <a href="https://wiki.pindula.co.zw/Mthuli_Ncube">Mthuli Ncube</a>.
He said the public procurement system has been invaded by tenderpreneurs who collude with some corrupt officials within the government to process payment often running into hundreds of thousands of US dollars in the full knowledge the culprits have no capacity to supply what they promise. <a href="https://www.zimlive.com/treasury-gives-7-day-ultimatum-to-air-suppliers-threatens-property-seizures/">ZimLive</a> cites Guvamatanga as saying:
<blockquote>
We also realised another disturbing trend in the public procurement system which is what is called in the streets as air supply…where actually orders and invoices are generated, and payments are made but nothing is delivered. They would have supplied air.
So, we are actually further strengthening our public procurement system.
We have got several cases currently under investigation of air supply and the culprits will be dealt with across the whole of the system, whether it is from government to the suppliers.
They will be dealt with, with the sternest measures that they deserve but we have further engaged the process working closely with PRAZ (Procurement Regulatory Authority of Zimbabwe) to ensure that our processes and systems actually work much, much better.
This is a very strong warning to all those who have been involved in this air supply; that your time has come to an end and the systems that we have put in place will make sure that you are all plucked out wherever you are hiding.
I guess for those who are smart enough, maybe in the next seven days, I might advise you maybe to find the goods that you were supposed to deliver and deliver them because we are coming after you.
</blockquote>
Guvamatanga said the measures will involve the seizure of cars and homes from government officials found to have colluded with the tenderpreneurs if they do not have savings in their bank accounts.
He could not readily state how much the government has been conned by the dealers.
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Government Gives 7 Days To Companies That Didn't Deliver Paid Goods

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