‘2016 National Budget target hard to achieve’ Acting President Emmerson Mnangagwa

Tinashe Makichi in Victoria Falls

Vice President Emmerson Mnangagwa has said the country’s 2016 National Budget target will be difficult to attain due to the El Nino-induced drought and the resultant costs of importing grain into the country. Giving his official address at the Zimbabwe National Chamber of Commerce Annual Congress in Victoria Falls yesterday, Vice President Mnangagwa said the economic challenges that the country was facing now require candid engagement in dialogue which should lead to the development of strategies to turnaround the economy.He said the impact of low mineral prices that have not as yet fully recovered from 2015 are also going to have a bearing on the anticipated failure to attain the budget target.

“I have no doubt that the urgency to rehabilitate and construct new infrastructure will be well received by this ZNCC congress as such enablers constitute the lifeblood of industry and commerce.

“In light of this, our 2016 National Budget target will be difficult to attain due to the El Nino-induced drought and importation of grain into the country. The firming US dollar against all neighbouring currencies has also had an effect on increasing costs of production and this is hurting export competitiveness across the board,” said VP Mnangagwa.

He said Government is implementing several economic recovery initiatives as contained in the Zimbabwe Agenda for Sustainable Socio-Economic Transformation and the Ten Point Plan.

The country had a budget of about $4 billion for the past four years and foreign direct investment has remained a challenge for the country due to policy inconsistencies.

The 2016 National Budget was projected at $3,85 billion, with growth rates of 2,7 percent with the agriculture and mining sectors expected to drive the growth.

VP Mnangagwa said Government is currently negotiating with bilateral and multilateral creditors on how to clear its international debt.

“As Government we are negotiating with our bilateral and multi-lateral creditors on how we intend to clear our debt and all that we owe. Fortunately for us, they all agreed with our repayment plan to initially clear what we owe the International Monetary Fund, The African Development Bank and the World Bank.

“Thereafter we will then negotiate for access to long-term lines of credit for infrastructure development and re-tooling of industry,” said VP Mnangagwa.

“I am convinced that the anticipated reduction in our debt obligations will send the right signals to potential investors and improve our economic rating, thereby attracting new foreign direct investment into the economy,” he said.

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