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Zimbabwe is moving onwards achieving Vision 2030 which entails the country becoming an upper middle income society. The Herald will be serialising the Vision 2030 document every Thursday for Government for the benefit of our readers.

Continued from last week.

Public Administration & Performance Management

110. Government will provide high quality services to citizens in an efficient and effective manner.

111. To this end, Government services will be available online and public sector agencies will be expected to address issues of modernisation and performance management, among others. 

112. The Vision will be guided by a Performance Management System that focuses on:

• Policy formulation, advocacy and coordination;

• Policy implementation, monitoring and evaluation;

• Public sector modernisation;

• Building capacities for public sector institutions;

• A lean well remunerated civil service; and

• Making civil servants apolitical, value driven, responsive, incorruptible and reputable.

State Owned Enterprises

113. Restructuring of individual State Owned Enterprises will be pursued in line with the set out parameters for each entity, that is through:

• Liquidation;

• Full privatisation;

• Transformation from player to regulator;

• Restructuring and establishing strategic partnerships;

• Merging and de-merging; and

• Departmentalisation into existing Ministries.

Foreign Policy & Re-engagement

114. Zimbabwe seeks to shed off its pariah status by actively re-engaging the international community on political, social and economic fronts.

115. In this regard, during the Vision period, Government will craft and adopt domestic policy priorities that translate into foreign policy goals to facilitate re-engagement with the international community, especially the Commonwealth, United Nations and Western countries.

116. The re-engagement drive launched by the new Dispensation with spirited missions of Presidential Special Envoys engaging several key countries for removal of sanctions and normalisation of economic and political relations will continue under Vision 2030.

MACRO-ECONOMIC STABILITY & FINANCIAL RE-ENGAGEMENT PILLAR

117. Vision 2030 can only be realised under a stable macro-economic environment, characterised by fiscal prudence, conducive monetary and financial policies, and a sound and solvent banking sector.

Fiscal Space for Development

118. In this regard, National Budget evolvement towards reduced and sustainable fiscal deficits, ranging 3–5 percent of GDP, is central to the achievement of the aspirations of Vision 2030.

119. Anchoring this will be gradual containment of:

• Total Outstanding Public and Publicly Guaranteed Debt at under 70 percent as a ratio of GDP, consistent with Section 11(2) of the Public Debt Management Act [Chapter 22:21].

• Central Bank Overdraft to under 20 percent of the previous year’s Government revenues, as stipulated in Section 11(1) of the Reserve Bank Act [Chapter  22:15].

120. This will allow for the realisation of Reserve Bank monetary policy targets of 3–7 percent inflation, consistent with the SADC inflation convergence targets.

121. Attainment of the above fiscal and monetary policies’ Vision 2030 targets will depend on progressive reduction of the share of employment costs in the Budget, central to creating fiscal space to accommodate financing of the Development Budget and other social protection programmes of this Vision.

122. Similarly, containment of the Budget deficit will also require sustainable financing of agriculture, through enhancing the role of private financiers.

Arrears Clearance and Debt Restructuring

123. Implementation of fiscal consolidation will be synchronised with the Programme for Clearance of Arrears, complemented by other structural reforms that the new Dispensation has embarked upon.

124. In this regard, Vision 2030 acknowledges that the complexity of the country’s debt challenges requires greater collaboration and cooperation with the international community, through normalising relations for an amicable solution.

Aid Coordination

125. The re-engagement efforts of the new Dispensation open new areas of cooperation with development partners, offering an opportunity for increased engagement with the international community.

126. Vision 2030 requires strengthening capacity of institutions of Government with responsibility for oversight of growing financial flows into Zimbabwe, including the development of a robust aid coordination architecture to buttress re-engagement with Development Partners.

127. This provides for alignment of Development Partners’ support to national development objectives and priorities, in order to streamline fragmentation and overlaps, that way allowing for increased aid effectiveness, accountability and transparency.

Anti-Money Laundering

128. Zimbabwe will strengthen the anti-money laundering legal, regulatory and institutional framework.

129. During the Vision period, it will also consolidate capacity building, training and awareness raising programmes on anti-money laundering.

Financial Intermediation, Stability & Inclusion

130. Vision 2030 envisages a sound and stable financial sector which plays a pivotal role of intermediation, supporting all sectors of the economy.

131. This requires institution of interventions to address risks related to weak corporate governance, and strengthening of Central Bank supervisory capacity.

132. The financial sector stability will be upheld to support the productive sectors of the economy, grow exports and accumulate reserves to attain improved financial and country ratings by global financial rating agencies.

133. Further, Vision 2030 envisages deepening the financial inclusion thrust currently underway to encompass all the unbanked, particularly the informal sector and rural areas, benefiting from advances in cellular technology.

Currency Reforms

134. Currently, the economy is using the multi-currency arrangement under which a basket of currencies dominated by the US dollar, as a transactions’ medium of exchange and store of value.

135. The multi-currency arrangement has posed a number of challenges, mainly related to export competitiveness, cash shortages, among others.

136. As the economy undertakes reforms and re-engagement efforts bear fruit, the economy’s productive capacity is expected to improve and strengthen the economy’s external position, thereby creating the necessary conditions to sustain a domestic currency.

137. The key conditions to sustain such domestic currency include:

• Generation of adequate foreign exchange reserves, to anchor the currency;

• Attainment of a sustainable economic growth path;

• Sustained macro-economic stability, of which anchoring fiscal and monetary policy consolidation are critical; and

• Enhanced business confidence.

138. Vision 2030 envisages Zimbabwe undertaking currency reforms during the period to 2030, subject to the economy meeting the above currency anchors.

INCLUSIVE GROWTH PILLAR

Investment Promotion

139. Under Vision 2030, Government is cognisant that investment is an essential ingredient for supporting the productive sectors.

140. Hence, interaction with various stakeholders, inclusive of the business community, centring on private sector investment led growth, will continue.

Pursuing Tenets of a Private Sector Led Market Economy

141. Bold steps are being taken to reduce Government’s ‘Footprint’ in the economy, empowering its entrepreneurs and fostering innovation at every level, guided by the following fundamental principles:

• Liberalisation through introduction of a Market-Based System;

• Respect for property rights and encouragement of private enterprises to thrive;

• Policy Consistency, Predictability, Certainty and Credibility; and

• Transparency and Accountability, underpinned by Fiscal Responsibility and Discipline.

Ease of Doing Business Reforms

142. The Ease of Doing Business reforms are part of broad measures being implemented under Vision 2030 to improve the investment climate. These target administrative and legislative bottlenecks that frustrate both local and foreign investors.

143. Government is drawing lessons from the experiences of other countries ranking high with regards to the Ease of Doing Business.

144. The necessary legislative and administrative reforms will consolidate and harmonise the various scattered investment related legislative pieces into a single Act.

145. Bureaucratic bottlenecks at ZIMRA, Municipalities, EMA, ZESA, AMA, NECs, NSSA, Liquor Licencing Board, have served to undermine ordinary business undertakings by households and individuals.

146. Hence, a lot of administrative procedures, timelines and costs will be reviewed and streamlined to facilitate the Ease of Doing Business.

147. These include registration of property, granting of construction permits, public procurement reforms, starting a business and ease of trading.