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Economic commentator Tinashe Murapata believes that the extension of the multi-currency system in Zimbabwe was influenced by a combination of factors, including the interaction with the International Monetary Fund (IMF). The IMF staff team led by Wojciech Maliszewski conducted a staff visit in Harare from October 18–25, 2023 conducted a visit to Zimbabwe to discuss economic developments and the outlook. They noted that there is still a significant difference in exchange rates and high inflation.
On 27 October 2023, the Zimbabwean government <a href="https://www.pindula.co.zw/2023/10/27/zimbabwe-has-allowed-the-use-of-foreign-currency-until-2030/">allowed for the settlement of transactions and payment for goods and services in foreign currency until 31 December 2030.</a> President Emmerson Mnangagwa said Statutory Instrument 218 of 2023 overrides another regulation called Statutory Instrument 142 of 2019 which declared the Zimbabwe Dollar as the sole legal tender in any transaction in Zimbabwe.
Economic commentator, Tinashe Murapata, believes that the decision to extend the multi-currency system was influenced by a combination of factors, including the interaction with the IMF. He said the IMF warned Zimbabwe about the risks of having a mono-currency system without reserves and confidence in the financial system. He said:
<blockquote>
The IMF was here, on a staff visit straight after the IMF Annual meeting in Marrakech. The IMF team had some strong words for Zimbabwe. The public statement betrays sterner engagement behind closed doors. The message would have been the same; it would be suicide to venture into mono currency when the country has zero reserves and low confidence in its financial system. 
The second event that might have swayed the authorities is the fast-depleting levels of USD cash in the formal system. Contrary to popular belief that the banks stopping their lending activities moved the needle, it’s the shortage of cash that roused panic. As of July USD cash was US$350m from the highs of US$550m at the beginning of the year. After the elections, this number has continued dwindling as depositors became worried about the rhetoric coming from a very powerful President. Notwithstanding, the international commodity price slump that has our miners worried and buckling. The major depositors in our financial system are foreign companies. 
</blockquote>
He added that geopolitical tensions and concerns about capital safety have likely played a significant role in Zimbabwe’s economic situation. Murapata said international creditors are worried about the safety of their money and repayments, and credit committees have increased monitoring and oversight in high-risk countries. South African investors, who control a significant amount of capital in Zimbabwe, have concerns about doing business in the country and the stability of the currency. The Zimbabwean government is not easily swayed by domestic actors and often disregards local business advice. Despite this, Zimbabweans themselves hold a significant amount of money and make investments and contributions to the economy.
Murapata also said the extension of the multi-currency system in Zimbabwe has brought relief to the public, but there are still concerns about the lack of a proper operating model. He said the credibility of the Reserve Bank of Zimbabwe (RBZ) is questioned, and there is a lack of trust and confidence in the system. The Nostro payments system is seen as the key to the success of the multi-currency regime, but it needs to be protected and managed properly in order to gain market confidence. He said the political situation in Zimbabwe is also a factor, with divisions and succession issues taking focus over economic concerns. 
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Pindula News

Economist Says A Number Of Factors Forced Zimbabwe To Extend Multi-currency System

Zimbabwe’s finance minister, <a href="https://www.pindula.co.zw/Mthuli_Ncube/">Mthuli Ncube</a>, has announced the country’s desire to establish a new staff-monitored program with the International Monetary Fund (IMF) by April next year.
An IMF team is scheduled to visit Zimbabwe later this month for initial discussions. Speaking during the IMF and World Bank Annual Meetings in Marrakech, Ncube stated that their goal is to finalise the staff-monitored program before the Spring Meetings in April 2024. <a href="https://www.reuters.com/world/africa/zimbabwe-seeks-new-imf-staff-monitored-programme-by-april-2023-10-12/?rpc=401&amp;">Reuters</a> quoted him as saying:
<blockquote>
Our intention is that by the time we go for the Spring Meetings in April 2024 we should have signed off on a staff-monitored programme.
It will focus on maintaining discipline on the fiscal front and continue fine-tuning our exchange rate system and maintaining a tight monetary policy.
</blockquote>
IMF staff-monitored programs involve close monitoring of the country’s economic plans by IMF staff. This program could potentially lead to future financial arrangements. Zimbabwe’s economy has been heavily impacted by inflation, and its ability to access long-term international capital is hindered by substantial arrears on debts owed to foreign lenders.
In 2019, the IMF approved another Staff-Monitored Program (SMP) to support Zimbabwe’s reform agenda, focusing on macroeconomic stability, re-engagement with the international community, and improving the business environment. Structural reforms, including privatising state-owned enterprises and enhancing governance, were initiated.
In May 2023, Zimbabwe projected to implement another SMP in the last quarter of the year as part of the arrears clearance and debt resolution process. The negotiations involved a three-pronged strategy, including economic reforms and addressing compensation for white former commercial farmers affected by the Land Reform Programme.
The Finance Minister stated that implementing the IMF’s SMP is crucial for development partners to assist Zimbabwe in finding a financier to clear the country’s arrears. The SMP needs to be financed to be effective. Zimbabwe expects partner support in important areas such as agriculture, food security, climate change, social protection, health funding, and education sector funding.
Ncube also stated that the government had reached compensation agreements with some white farmers whose lands were seized two decades ago during the Fast Track Land Reform Programme. According to Minister Ncube, individual farmers have agreed to the payment plan and are satisfied with signing the agreement with the government. Zimbabwe plans to pay the farmers $3.5 billion over a period of ten years, which is a shorter timeframe compared to the previously announced 20 years. This compensation is a crucial part of the government’s strategy to clear arrears, developed in collaboration with the African Development Bank.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwe Announces Desire For A New IMF Staff-Monitored Program

The International Monetary Fund (IMF) advised Zimbabwe not to adopt a gold-backed digital currency to address macroeconomic issues such as volatility in the local currency.
Instead, they recommended that Zimbabwe liberalize its foreign exchange market. However, the country’s central bank began selling digital tokens on Monday to reduce demand for US dollars, currently the preferred currency for transactions. The tokens are available for purchase by individuals for a minimum price of $10 and by corporations and other entities for a minimum price of $5 000 and will eventually be used for transactions.
An IMF spokesperson said Tuesday in an emailed response to questions by <a href="https://www.dailymaverick.co.za/article/2023-05-09-imf-cautions-zimbabwe-against-plan-for-gold-backed-digital-money/">Daily Maverick</a>: 
<blockquote>
A careful assessment should be conducted to ensure the benefits from this measure outweigh the costs and potential risks including, for instance, macroeconomic and financial stability risks, legal and operational risks, governance risks, cost of forgone FX reserves.
</blockquote>
The International Monetary Fund advised Zimbabwe to use conventional measures like maintaining a tight monetary policy and accelerating the liberalization of the foreign currency market to address economic challenges. The Zimbabwean dollar has depreciated 40% against the US dollar this year.

<ul>
<li><a href="https://news.pindula.co.zw/2023/05/08/buying-rbzs-gold-backed-digital-tokens-here-is-what-you-need-to-know/">Buying RBZ Gold-backed Currency: Here Is What You Need To Know</a></li>
</ul>
The effectiveness of conventional measures in addressing economic challenges in Zimbabwe has been mixed. While maintaining a tight monetary policy and accelerating foreign currency market liberalization can help address macroeconomic issues like currency volatility, the country has struggled with economic instability, high inflation, and a shortage of foreign currency for years.
Zimbabwe has implemented several economic reforms in recent years, including currency reforms, but progress has been slow, and the country continues to face significant economic challenges.
Some factors contributing to Zimbabwe’s economic instability include political instability, corruption, poor governance, land reform policies, and economic sanctions. 
International Organizations’ Role in Zimbabwe’s economic recovery:
The International Monetary Fund (IMF) has provided financial support to Zimbabwe through various programs, including the Staff Monitored Program (SMP) and the Extended Fund Facility (EFF). The World Bank has also provided Zimbabwe with technical assistance and policy advice through various programs, including the Economic Reform and Competitiveness Project. Additionally, regional organizations like the African Development Bank (AfDB) have provided financial and technical assistance to support Zimbabwe’s economic recovery efforts. However, the effectiveness of these efforts has been limited by political and economic challenges within the country.
<h2><a href="https://www.pindula.co.zw/">More Pindula News</a></h2>

IMF Advised Zimbabwe Against Adopting Gold-backed Digital Currency For Economic Stability

A senator belonging to the opposition MDC-T has advised Finance and Economic Minister <a href="https://www.pindula.co.zw/Mthuli_Ncube">Mthuli Ncube</a> not to repay International Monetary Fund (IMF) and World Bank loans saying the two Breton Woods institutions are enemies to Zimbabwe.
The senator, Tichinani Mavetera (Masvingo Province), who is also the MDC-T Chief Whip in the Senate, said the financing institutions have been influencing other financiers to refuse to bail out Zimbabwe. <a href="https://openparly.com/imf-world-bank-are-our-enemies-do-not-repay-them-says-mdc-t-senator/">Open Parly</a> quotes him as saying:
<blockquote>
The other issue is of our foreign debt. I think the Minister is doing a sterling job in trying to make sure that we honour our external debt. It is not a bad idea, if you borrow, you should learn to pay back – it is a good behaviour.
However, I have a problem Madam President, if I borrow from you Madam President and you want me to pay back but you go around and encourage other people not to lend me money that will enable me to generate more money so that I pay you back, it is not good. At the moment what we are facing as a country, the Paris Group of Financial Institutions are the ones we owe more money but for the past two decades, they have not given us money, yet they want us to pay.
Not only that, but they also go around the world saying do not pay Zimbabwe. You will hear that Zimbabwe has got its image tainted, it is not tainted by anyone but it is being tainted by those Paris Club Financial Institutions, but the Minister is going around in trying to get money to pay them, what for?
I think the issues which we are facing as a nation such as shortage of drugs, children are not going to school yet we want to spend our hard earned dollar paying those debts.
Let us put them on hold, probably we will never pay them, nyika haigone kutorwa, we will defend, and we buy guns from our friends for our defence. Definitely, those are the issues which we need to articulate, this budget is actually burdening the Zimbabwean populace.
As a nation, we do not need to pay IMF, we do need to pay World Bank because since I was a little boy and now am old; 20 years they have not given us anything. Yes, if you borrow and you do not pay back, they do not have to go around telling everyone to say: do not give him and then you come demanding your money. Those are our enemies, if I were to declare, I will declare them enemies of the State. We do not need them…
Therefore, Hon. Minister, you are spending energy on the wrong things. That is my comment as a citizen and as someone who has suffered from those policies. We do not need to perpetuate those ones. Yes, we have got an obligation to pay but the timing is wrong when we do not have drugs when we are dying and have got hunger.
</blockquote>
<ul>
<li><a href="https://zero.pindula.co.zw/zimbabwe-engaging-imf-world-bank-on-how-to-clear-its-debts/">Zimbabwe Engaging IMF, World Bank On How To Clear Its Debts</a></li>
<li><a href="https://zero.pindula.co.zw/zimbabwe-hit-with-penalties-totalling-us2-1-billion-for-unsettled-debts/">Zimbabwe Hit With Penalties Totalling US$2.1 Billion For Unsettled Debts</a></li>
</ul>
Since coming to power in 2018, the Emmerson Mnangagwa-led government has made part of its priority to service the debts.
However, Senator Mavetera is against the idea, instead labelling the creditors as enemies of the country.
In his response to the senator, minister Mthuli Ncube said there have been positives that have come due to the servicing of the debt and that the country will continue with token payments. He said:
<blockquote>
Then on the foreign debt, the Hon. Senator was eloquent that perhaps we should not be paying these token payments because we are getting nothing from these parastatals but we are getting something. Only that they do not wish to put those resources through central government but want to use other structures such as UNDP and so forth. 
The monies are coming but it is not at the same level as before, so it is a lot smaller but it is coming.  Our view was that we cannot clear our debts if we do not even begin to show that we are good debtors.  It is important to make these token payments and it is not strenuous on us as a government because we are able to make these small payments. 
</blockquote>
He added that the payments work to normalise relations between Zimbabwe and the Paris Club, one of Zimbabwe’s major creditors.
<h2><a href="https://zero.pindula.co.zw/">More Pindula News</a></h2>

MDC-T Senator Advises Finance Minister Not To Repay IMF, World Bank Loans

The International Monetary Fund (IMF) has urged the Reserve Bank of Zimbabwe (RBZ) to liberalise the exchange rate, NewsDay reported citing a statement by the Breton Woods institution.
The IMF delegation led by Dhaneshwar Ghura made the recommendation following a 15-day visit to Zimbabwe. Read the statement:
<blockquote>
A near-term policy imperative is to sustainably anchor macro-economic stability. In this context, fund staff recommends accelerating the liberalisation of the forex market, including through the removal of restrictions on the exchange rate at which banks, authorised dealers and businesses transact…
This can be achieved by mobilising additional revenues, based on tax policy reforms, and by scaling back non-priority outlays, while strengthening public finance management. The financial oversight of the SOEs [State owned enterprises] by Treasury should be further strengthened in order to minimise fiscal risks.
International re-engagement remains critical for debt resolution and access to external financial support.
</blockquote>
RBZ established the forex auction in June 2020 to cater for the foreign currency needs of businesses.
Local economists have always been advising the government through the RBZ to stop quasi-fiscal activities, liberalise the exchange rate, wind down gold coins and restore macroeconomic stability. 
The central bank has been controlling and regulating the foreign currency exchange rate accusing players on the black market of fueling the collapse of the Zimbabwe dollar.
<h2><a href="https://zero.pindula.co.zw/">More Pindula News</a></h2>

IMF Urges RBZ To Liberalise The Exchange Rate

Finance and Economic Development Minister, Professor <a href="https://www.pindula.co.zw/Mthuli_Ncube">Mthuli Ncube</a> has said Zimbabwe is engaging with the World Bank and International Monetary Fund (IMF) on how to <a href="https://zero.pindula.co.zw/former-finance-minister-biti-says-zimbabwes-external-debt-figure-is-heavily-contested/">clear its debts with international financial institutions.</a>
Ncube told an IMF press conference on Saturday that Zimbabwe had begun issuing bonds with maturities of between two and 20 years in order to honour its debt to creditors and was looking at how they can be traded, while it was also looking to issue bonds to compensate white former farmers over time.
A bond is a fixed-income investment that represents a loan made by an investor to a borrower, usually corporate or governmental, according to <a href="https://www.investopedia.com/terms/b/bond.asp">Investopedia</a>. 
Zimbabwe has over $10 billion in external debt, mostly in arrears. It has not received funding from lenders like the IMF and World Bank for more than two decades as a result. Ncube said:
<blockquote>
We’ve begun to make token payments to the World Bank, the AfDB (African Development Bank), European Investment Bank. And all the Paris Club creditors, 17 of them, we will be making token payments to show that we want to be a good debtor.
</blockquote>
He said IMF staff would visit Zimbabwe in December and then discuss a staff-monitored programme in the first and second quarters of 2023.
In 2019, the IMF approved <a href="https://t792ae.c2.acecdn.net/wp-content/uploads/2019/05/IMF-PRESS-RELEASE.pdf">Zimbabwe’s Staff Monitored Program</a> which was intended to assist the authorities in the implementation of a coherent set of economic and social policies to facilitate a return to macroeconomic stability.
The SMP was also meant to assist in re-engagement with the international community.
<h2><a href="https://zero.pindula.co.zw/">Pindula News</a></h2>

Zimbabwe Engaging IMF, World Bank On How To Clear Its Debts

The International Monetary Fund (IMF), a financial agency of the United Nations, has advised policymakers to adopt austerity measures warning that <a href="https://zero.pindula.co.zw/imf-says-the-worst-is-yet-to-come-for-many-people-2023-will-feel-like-a-recession/">2023 will “feel like a recession.”</a>IMF’s <a href="https://cdn01.dailycaller.com/wp-content/uploads/2022/10/IMF-Oct-2022-1.pdf">World Economic Outlook</a> seen by Pindula News reads in part:
<blockquote>
For most economies, they considered that tighter monetary and fiscal policies are necessary to durably reduce inflation. At the same time, they emphasized that these policies should be accompanied by structural reforms that improve productivity, expand economic capacity, and ease supply-side constraints. Directors recognized that many emerging market and developing economies (EMDEs) face tougher policy choices, as higher food and fuel prices, the need to support the recovery and vulnerable populations, and rising costs of market financing from tighter global financial conditions and US dollar appreciation can pull in different directions, necessitating a difficult balancing act.
Directors stressed that monetary authorities should act decisively and continue to normalize policy to prevent inflationary pressures from becoming entrenched and avoid an unmooring of inflation expectations. They agreed that central banks in most advanced economies and EMDEs would need to continue tightening the monetary policy stance to bring inflation credibly back to target and to anchor inflation expectations.
Directors stressed that maintaining central bank independence and policy credibility will be essential to secure price stability. They also emphasized the importance of continuing to assess the impact of the simultaneous monetary tightening by central banks and, in particular, its implications for EMDEs. Directors stressed that clear communication of both policy functions and the unwavering commitment to achieve price objectives is crucial to preserve credibility and avoid unwarranted market volatility. They considered that, should global financial conditions tighten in a disorderly manner, EMDEs could face capital outflows and should be ready to use all available tools, including foreign exchange interventions and capital flow management measures, guided when appropriate by the Integrated Policy Framework and in line with the Institutional View on the Liberalization and Management of Capital Flows and without substituting for exchange rate flexibility and warranted macroeconomic adjustments.
Directors concurred that fiscal policy is operating in a highly uncertain environment of elevated inflation, slowdown in growth, high debt, and tightening borrowing conditions. They stressed that, where inflation is elevated, a tighter fiscal stance would send a power powerful signal that policymakers are aligned in their fight against inflation. Such a signal would, in turn, reduce the size of required interest rate increases to keep inflation expectations anchored and would help keep borrowing costs lower. Directors emphasized that fiscal support to address the surge in cost of living from high food and energy prices should primarily focus on targeted support to the most vulnerable segments, given the criticality of preserving price incentives to promote energy conservation. Some Directors considered that additional but temporary energy policies may be needed in countries that face exceptionally high and volatile energy prices owing to Russia’s war in Ukraine.
Directors broadly agreed that fiscal policy has a role in protecting people against loss in real incomes in moments of large adverse shocks, but that requires healthy public finances. Building on the experience of the pandemic, they considered that governments should invest in social safety nets and develop policy strategies and tools that can be readily deployed under various scenarios. Directors concurred that a sound and credible medium-term fiscal framework, including spending prioritization and efforts to raise revenues, can help manage urgent needs from high food and energy prices, rebuild fiscal buffers to cope with future crises, and make progress in long-term development needs, such as investment in renewable energy and health care, which can also foster economic resilience.
Directors noted that, although no material systemic event has materialized so far, financial stability risks have risen along many dimensions, which highlights the importance of containing a further buildup of financial vulnerabilities. Being mindful of country-specific circumstances and near-term economic challenges, they agreed that selected macroprudential tools may need to be adjusted to tackle pockets of elevated vulnerabilities. Directors noted, however, that striking a balance between containing the buildup of vulnerabilities and avoiding procyclicality and a disorderly tightening of financial conditions is important given heightened economic uncertainty and the ongoing policy normalization process.
Directors reiterated their urgent call for global cooperation and dialogue, which are essential to defuse geopolitical tensions, avoid further economic and trade fragmentation, and respond to challenges in an interconnected world. They agreed on the criticality of multilateral actions to respond to existing and unfolding humanitarian crises, end Russia’s war in Ukraine, safeguard global liquidity, manage debt distress, mitigate and adapt to climate change, and end the pandemic. Noting that many countries are contending with tighter financial conditions, high debt levels, and pressures to protect the most vulnerable from surging inflation, Directors called on the multilateral institutions to stand ready to provide emergency liquidity to safeguard essential spending and contain financing crises. They also called for
greater debt transparency and better mechanisms to produce orderly debt restructurings—including a more effective Common Framework—in those cases where insolvency issues prevail. Acknowledging that recent energy and food price shocks may have undermined the green transition, Directors stressed that achieving energy security and addressing the climate agenda go hand-in-hand, including by addressing the significant climate financing needs of EMDEs and investing in renewable energy and energy efficiency. Even though the COVID-19 pandemic is starting to fade, Directors called for decisive actions to address the continued inequity in access to health care and vaccinations worldwide and reduce the threat of future pandemics.
</blockquote>
<h2><a href="https://zero.pindula.co.zw/">Pindula News</a></h2>

IMF Recommends Austerity Measures As 2023 Looks Gloomy

The International Monetary Fund (IMF), has warned Tuesday that the “worst is yet to come” for the global economy as economic indicators suggest the world will likely face a recession in 2023.
The global economy currently possesses the world’s weakest growth profile since 2001, excluding the COVID-19 pandemic and the 2008 global financial crisis, according to IMF’s <a href="https://cdn01.dailycaller.com/wp-content/uploads/2022/10/IMF-Oct-2022-1.pdf">World Economic Outlook</a> seen by Pindula News. 
The IMF claimed that soaring energy prices and supply chain disruptions worsened by Russia’s invasion of Ukraine on 24 February this year could send the global economy into a recession. The outlook states:
<blockquote>
More than a third of the global economy will contract this year or next, while the three largest economies—the United States,
the European Union, and China—will continue to stall. In short, the worst is yet to come, and for many people 2023 will feel like a recession.
</blockquote>
The IMF also predicts that global growth will likely remain unchanged in 2022 at 3.2 percent and slow to 2.7 percent in 2023. 
The 2023 global growth will be 0.2 percentage points lower than the July forecast with a 25 percent probability that it could fall below 2 percent, according to IMF.
The IMF also says the hyperinflationary conditions across the world will continue. 
According to the IMF, China’s economic slowdown is also contributing to a looming recession as its strict COVID policies are forcing economic activity to be artificially curtailed. 
China’s lockdowns are contributing to declining global trade as the nation is the world’s second-largest economy and is a massive consumer market.
<a href="https://zero.pindula.co.zw/">Pindula News</a>

IMF Says "The Worst Is Yet To Come, For Many People 2023 Will Feel Like A Recession"

The International Monetary Fund (IMF) has said the Zimbabwean gold coins are a missed chance to build the nation’s gold reserves.
The Reserve Bank of Zimbabwe (RBZ) introduced the Mosi-oa-Tunya gold coins on 25 July this year in a bid to curb stabilise the economy and the local currency that was fast shedding value against the United States dollar.
In an emailed response to <a href="https://www.bloomberg.com/news/articles/2022-09-22/imf-says-gold-coins-a-missed-chance-to-build-zimbabwe-reserves">Bloomberg</a> questions, an IMF spokesperson said:
<blockquote>
The sale of gold coins has contributed to withdrawing Zimbabwe dollar liquidity from the market, though it represents an opportunity cost in terms of foregone reserves for the Reserve Bank of Zimbabwe.
</blockquote>
The central bank plans to sell smaller denominations of the Mosi-oa-Tunya gold coins, named after Victoria Falls, from November. 
The smallest, a tenth of an ounce, will be made available to the public through banks and approved dealers. A regular-size one is selling for $1 755, according to data available Thursday on the central bank’s website.
The government credits the coins for halting the decline in the parallel market rate for the Zimbabwe dollar. That’s allowed it to converge with the official rate, which has plunged more than 80% against the US currency this year.
Gold output in the southern African nation surged 41% in the first eight months of the year to 22,290 kilograms from a year earlier. The country aims to produce 35 tons of bullion in 2022.
<h2><a href="https://zero.pindula.co.zw/">Pindula News</a></h2>

IMF Says Gold Coins Are A Missed Chance To Build Zimbabwe's Gold Reserves

The International Monetary Fund (IMF) Thursday said at least a third of Zimbabwe’s total population faces starvation as a result of high inflation and exchange rate fragilities, which have been compounded by a poor rainfall season, 
Zimbabwe has an estimated population of 16 million people and a third translates to over five million people.
In a statement released following the conclusion of its 2022 Article IV Consultation, the IMF said one of the most immediate, crucial interventions that Zimbabwe required was to end the currency crisis.
This would be a vital step in limiting the impact of bad policies, IMF said.
However, it commended the government for swiftly combating the COVID-19 pandemic, although policy missteps were now overshadowing its interventions. IMF said:
<blockquote>
High double-digit inflation and wide parallel foreign exchange market premium have persisted. Poverty has risen and about a third of the population is at risk of food insecurity.
</blockquote>
In the past three years, Zimbabwe has been held back by exogenous shocks, including drought and a string of cyclones, which led to a deep recession.
The government has already ruled out this year’s farming season following inconsistent rains. 
Senators recently urged the government to raise the maize producer price to lure more farmers into growing the crop. 
More: <a href="https://www.newsday.co.zw/2022/03/fresh-trouble-for-zimbabwe/">NewsDay Zimbabwe</a>

A Third Of Zimbabwe's Total Population Faces Starvation  - IMF

Zimbabwe paid US$44.2 million to foreign creditors during the nine months to September, as part of its refreshed debt repayment plan.
The data released by Finance minister Mthuli Ncube in his annual debt analysis showed that Zimbabwe’s external debt increased to US$13.7 billion during the period.
But at this rate of settlement, it could take Harare over 300 years to pay off the mounting debts and interest.
Harare’s unsettled debt to international lenders was estimated at US$10.7 billion early this year.
Big global lenders have turned their backs on Zimbabwe citing the Southern African country’s inability to service existing commitments.
But Ncube revealed in July that he would be fighting to demonstrate the government’s commitment to pay debts through token payments.
Ncube said in the paper that the US$44 million was paid to active portfolios, international financial institutions (IFIs) and Paris Club creditors. He said:
<blockquote>
Payments for the active portfolios are critical in unlocking disbursements for ongoing projects.
</blockquote>
Most of the payments were wired to China Eximbank, which received US$15 million.
Settlements to Arab Bank of Economic Development in Africa amounted to US$11.7 million followed by Sinosure, which received US$6 million and India Eximbank, which was paid US$2.7 million.
The World Bank got a token payment of US$3 million while the Paris Club bloc received a combined US$1.6 million, in addition to US$1.5 million which was paid to the African Development Bank.
Most of these institutions are owed over US$1 billion.
Zimbabwe had defaulted since 2001, after falling into an economic crisis, which saw inflation hitting a record 231 million per cent in 2008, as per official statistics.
Speaking during an economic review webinar hosted by the Zimbabwe Independent in July, Ncube said his plan was to demonstrate goodwill to the powerful economies before kicking off full-scale payments.
More: <a href="https://www.newsday.co.zw/2021/11/underfire-zim-pays-us44m-of-foreign-debt/">NewsDay Zimbabwe</a>

Zimbabwe Pays US$44.2 Million Of Foreign Debt

The government of Zimbabwe has announced a plan to borrow ZW$146.8 billion (about US$1.4 billion) in 2022 to fund various infrastructure development projects.
This debt would add to the existing stock of US$13.7 billion, according to a paper on debt trends released Thursday.
Finance minister <a href="https://www.pindula.co.zw/Mthuli_Ncube">Mthuli Ncube</a> said the debt will be sourced through the issuance of government securities, utilisation of the <a href="https://www.pindula.co.zw/Special_Drawing_Rights_(SDR)">International Monetary Fund Special Drawing Rights (SDRs)</a> allocation and external loan disbursements.
The IMF SDRs were received in August as part of a big global package announced to stabilise the global economy in the aftermath of the COVID-19 pandemic.
The statement on public debt was presented to Parliament Thursday along with the 2022 national budget. Ncube said:
<blockquote>
On domestic borrowing, government will continue to issue Treasury Bills through the auction system for competitive pricing, as well as to improve accountability and transparency. The projected stable macroeconomic environment, characterised by low stable inflation, as well as, stable exchange rate is expected to spur the uptake of medium to long-term government securities by investors.
</blockquote>
As part of deficit financing, the government will issue seven-year USD denominated Treasury bonds of up to US$100 million, to be listed on the <a href="https://www.pindula.co.zw/Victoria_Falls_Stock_Exchange">Victoria Falls Securities Exchange</a> (VFEX) during the first quarter of 2022, earmarked for specific priority infrastructure projects. 
Government borrowing has in the past attracted criticism from stakeholders including the <a href="https://www.pindula.co.zw/ZIMCODD">Zimbabwe Coalition on Debt and Development (ZIMCODD). </a>
ZIMCODD argues that the <a href="https://news.pindula.co.zw/2019/04/16/zimcodd-challenges-government-to-be-transparent-on-debt/">huge chunk of the country’s debt is due to corruption which goes unpunished.</a>
More: The Independent

Zimbabwe To Borrow US$1.4 Billion In 2022 To Fund Various Projects

The International Monetary Fund has revised Zimbabwe’s growth for this year downwards from 6% to 5.1%.  Zimbabwe says its economy will grow by 7.8%.
<a href="https://insiderzim.com/imf-revises-zimbabwe-growth-downwards/">The Insider</a> reports that the IMF also said inflation is likely to end the year at 92.5%. Inflation for September was pegged at 51.5%.
Zimbabwe’s inflation has been dropping steadily from 837.5% in July last year to 348.6% in December but rose to 362.6% in January before declining to 50.2% in August.
The Reserve Bank of Zimbabwe (RBZ) revised its inflation figures for the end of the year from below 10% to between 25 and 35%.
Inflation is rising following the siege on the Zimbabwe dollar which has now dropped to as much as $200 to the United States dollar against the auction rate of $90.08.
Analysts say the only solution is to dollarise but the government argues that there is no way the country’s economy can grow if the country dollarises. The government has set up a roadmap for de-dollarisation.
President Emmerson Mnangagwa believes his administration is steering the country back onto the growth path despite efforts by saboteurs to choke government efforts. 

The business community argues that government policies are to blame for the present chaos. <a href="https://news.pindula.co.zw/2021/10/15/czi-speaks-on-the-arrest-of-business-leaders/">The Confederation of Zimbabwe Industries said on Wednesday:</a> 

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Bad policy blurs the lines and results in criminal activity co-mingling with legitimate business survival decisions in a forex mispriced system. 

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CZI warns against arresting business leaders saying the move has the effect of instilling fear in stakeholders. 
More: <a href="https://news.pindula.co.zw">Pindula News</a>

IMF Revises Zimbabwe's Growth For 2021 Downwards

Zimbabwe can now withdraw its SDR677.4 million, which is equivalent to US$960 million, from the International Monetary Fund (IMF).
IMF managing director Kristalina Georgieva said Monday the organization is allocating US$650 billion to its 190 members which members can withdraw from today.
The bailout is, however, befitting rich countries as the allocation is based on each country’s quota shares in the IMF.
The United States, for example, is entitled to SDR79 billion which is over US$111 billion, and is more than five times what all the low-income countries are getting.
Georgieva said about US$275 billion is going to emerging and developing countries, of which low-income countries will receive about US$21 billion.
The rich countries: China, Japan, Germany, France and the United Kingdom, are each getting more than all the low-income countries are getting.
Below is a list of how much some countries are getting:
<img alt="" class="aligncenter size-full wp-image-41583" decoding="async" height="1700" loading="lazy" sizes="(max-width: 2200px) 100vw, 2200px" src="https://insiderzim.com/wp-content/uploads/sdr-allocations-7.jpg" srcset="https://insiderzim.com/wp-content/uploads/sdr-allocations-7.jpg 2200w, https://insiderzim.com/wp-content/uploads/sdr-allocations-7-300x232.jpg 300w, https://insiderzim.com/wp-content/uploads/sdr-allocations-7-1024x791.jpg 1024w, https://insiderzim.com/wp-content/uploads/sdr-allocations-7-768x593.jpg 768w, https://insiderzim.com/wp-content/uploads/sdr-allocations-7-1536x1187.jpg 1536w, https://insiderzim.com/wp-content/uploads/sdr-allocations-7-2048x1583.jpg 2048w, https://insiderzim.com/wp-content/uploads/sdr-allocations-7-360x278.jpg 360w, https://insiderzim.com/wp-content/uploads/sdr-allocations-7-545x421.jpg 545w, https://insiderzim.com/wp-content/uploads/sdr-allocations-7-1600x1236.jpg 1600w" width="2200"/>
 
More: <a href="https://insiderzim.com/zimbabwe-can-now-draw-its-us960-million-from-imf/7/">The Insider</a>

Zimbabwe Can Now Withdraw US$960 Million From The IMF

Former finance minister Tendai Biti has described the International Monetary Fund (IMF) as a naïve and dishonest institution after it published a report forecasting a 7% growth in Zimbabwe’s economy.
After the IMF staff team led by Dhaneshwar Ghura conducted a virtual staff visit with the Zimbabwe authorities during June 1–15, 2021 to discuss recent economic developments and the economic outlook, it released a press statement saying that economic recovery is underway in 2021.
IMF also projected real GDP growth of 6 per cent, “reflecting a bumper agricultural output, increased energy production, and the resumption of greater manufacturing and construction activities.”
Addressing online viewers during a policy dialogue organised by SAPES to discuss the recent IMF and World Bank reports, Biti said:
<blockquote>_The IMF press statement was naïve and dishonest. It reminded me of  IMF reports that used to be issued in 2014/15/16 by an IMF chief known as Dominic Fanizer who later on left the IMF and joined the Development Bank._
_Those reports were so dishonest and so dangerous they sounded been written and authored at the Zanu PF head office._
_It looks like we are now back to that same level of naivety by the IMF so we have a group of people and I don’t think the lead economist has actually ever been to Zimbabwe so they conduct zoom interviews by zoom officials, conduct zoom interviews with Zimbabweans carefully selected by the local office which has been adding and abating this dishonest and suddenly they have become experts on Zimbabwe and they can write a report on Zimbabwe._
_This is typical of decades of IMF interventions on the African continent which has been consistent siding with autocrats, which has been consistent with siding and undermining democratic agenda._
_If you trace the 70s, the 80s constantly there were writing reports oblivious to the atrocities of people like Emperor Bukasa, Sani Abacha stealing billions in Nigeria, various Ugandan governments from Milton Obote now Yoweri Kaguta Museveni who just by the way only last week got a billion-dollar loan from the IMF despite the atrocities and electoral disputes in Uganda._
_So, it appears that the IMF particularly under the new managing director Georgina Christina, the regime at the IMF is naïve and dishonest._</blockquote>
Biti said agriculture, which IMF based its predictions on, now plays an insignificant contribution to GDP adding that its share fell from 35% of GDP to 8% of GDP.
More: <a href="https://news.pindula.co.zw">Pindula News</a>; <a href="https://www.newzimbabwe.com/biti-rubbishes-naive-and-dishonest-imf/">NewZimbabwe</a>

Biti Blasts "Naive" IMF Over Economic Growth Predictions

The International Monetary Fund (IMF) has said Zimbabwe needs a broader reform and stabilisation agenda to sustain efforts by the government to support the local currency and to lower inflation.
IMF spokesperson told NewZimbabwe on Friday that Zimbabwe should address pandemic-related health and social challenges, coordinate fiscal, foreign-exchange and monetary policies, and implement structural reforms aimed at improving the business climate and curbing corruption.
The Breton Woods institution indicated plans to hold a virtual staff visit in the first half of June, which would be a precursor to the country’s enrolment in a staff-monitored program.
A similar programme ended in February 2020, when the IMF said Zimbabwe had gone “off track.” Said the spokesperson:
<blockquote>_Fund staff will discuss recent macroeconomic developments, the authorities’ efforts in addressing the Covid-19 pandemic and vaccine roll-out, economic outlook and policies and capacity development priorities._
_Fund staff take note of the authorities’ efforts to stabilize the local currency and lower inflation over the last few months._</blockquote>
Zimbabwe’s Minister of Finance and Economic Development, Professor Mthuli Ncube previously projected that the economy will grow 7.4% this year while IMF projects a 3.1% growth.
Zimbabwe is saddled with a $10 billion debt owed to multilateral lenders including the World Bank, Paris Club, and African Development Bank and clearing it is crucial for it to access fresh credit lines.
The IMF recommends the implementation of “sound policies” and attraction of donor support to resolve the <a href="https://news.pindula.co.zw/2018/10/17/farmers-will-no-longer-get-farm-implements-from-govt-for-free-mthuli-ncube/">debt overhang problem.</a>

<ol>
<li class="entry-title"><a href="https://news.pindula.co.zw/2020/10/16/imf-paints-gloomy-picture-on-zimbabwes-economy/">IMF Paints Gloomy Picture On Zimbabwe’s Economy</a></li>
<li class="entry-title"><a href="https://news.pindula.co.zw/2020/07/28/watch-imf-meet-to-consider-south-africas-4-2-billion-loan-request/">WATCH: IMF Meet To Consider South Africa’s $4.2 Billion Loan Request</a></li>
<li class="entry-title"><a href="https://news.pindula.co.zw/2020/05/02/mthuli-ncube-should-resign-after-his-imf-confessions-analysts/">Mthuli Ncube Should Resign After His IMF ‘Confessions’ – Analyst</a>s</li>
<li class="entry-title"><a href="https://news.pindula.co.zw/2020/06/30/worse-than-we-thought-imf-on-deterioration-of-zimbabwe-african-economies/">Worse Than We Thought: IMF On Deterioration Of Zimbabwe, African Economies</a></li>
<li class="entry-title"><a href="https://news.pindula.co.zw/2020/04/30/broke-zimbabwean-govt-promises-imf-that-it-will-reform/">Broke Zimbabwean Govt Promises IMF That It Will Reform</a></li>
<li class="entry-title"><a href="https://news.pindula.co.zw/2018/09/14/2-year-economic-stabilisation-plan-ready-for-cabinet-approval-top-govt-official/">2 Year Economic Stabilisation Plan Ready For Cabinet Approval- Top Govt Official</a></li>
<li class="entry-title"><a href="https://news.pindula.co.zw/2020/03/11/mthuli-to-set-up-a-currency-stabilisation-task-force/">Mthuli To Set Up A Currency Stabilisation Task Force</a></li>
</ol>
More: <a href="https://news.pindula.co.zw/">Pindula News</a>; <a href="https://www.newzimbabwe.com/imf-calls-for-major-reforms-to-turn-zimbabwes-economy-around/">NewZimbabwe</a>

IMF: Zimbabwe Needs Broader Reform & Stabilisation Agenda

The International Monetary Fund has said that most of the African economies will deteriorate farther than they had projected.
The fund initially predicted that Zimbabwe’s economy would grow by shrink by 0.8 percent before revising the projection to 7.4% in April, and now further down to 10.4%.
In April, the IMF had predicted that Zimbabwe would record growth of 2.5% next year but now predicts that the Zimbabwe economy will recover 4.2% in 2021.
The projections are made after Zimbabwe’s Finance Minister Mthuli Ncube, in a letter to the IMF in April, said Zimbabwe’s economy could fall by as much as 20% as COVID-19 worsens the economic crisis.
Turning to African economies at large, the IMF report observed that remittances which had in the past surpassed Foreign Direct Investment (FDI), will fall significantly. The report observed:
<blockquote>The outlook for 2020–21 is considerably worse than expected in April and subject to much uncertainty.
Across country groupings, growth is expected to fall the most in tourism-dependent and resource-intensive countries. Growth in non-resource intensive countries is expected to come to a near standstil.</blockquote>
The majority of African countries were staggering even before the outbreak of the coronavirus pandemic therefore a further decline can worsen the economic and humanitarian crisis obtaining on the continent.
More: <a href="https://newzwire.live/worse-than-we-thought-imf-cuts-zimbabwe-forecast-further-to-10-4-but-sees-4-2-recovery-in-2021/" rel="noopener noreferrer" target="_blank">NewzWire</a>

Worse Than We Thought: IMF On Deterioration Of Zimbabwe, African Economies

Zimbabwe is set to receive US$7 million from the World Bank to support its fight against the coronavirus pandemic.
The Bretton Woods institution indicated that the money comes from its trust funds and partners because Zimbabwe is not eligible to access funds through its regular financing channels because it is not current on its debt-service obligations with the institution.
In an emailed response to questions by Bloomberg, the Bank said:
<blockquote>We recognize this is a global crisis that impacts every country and we cannot leave anyone behind.</blockquote>
This comes a few weeks after Zimbabwe’s Finance Minister, Professor Mthuli Ncube made a heartbreaking plea to the International Monetary Fund to provide financial assist assistance to the country.
Ncube said that the money would be used to fight the coronavirus pandemic and the economic and humanitarian crisis in the country.
More: <a href="https://www.bloomberg.com/news/articles/2020-05-06/world-bank-to-give-zimbabwe-virus-lifeline-despite-arrears">Bloomberg</a>

Zimbabwe Gets $7M From The World Bank

Zimbabwe’s Minister of Finance and Economic Development, Professor Mthuli Ncube recently wrote a letter to the International Monetary Fund asking for financial assistance.
Ncube’s plea comes when the outbreak of the deadly coronavirus pandemic has affected the country’s revenue inflows.
We present the minister’s letter in full below.
<blockquote>
Dear Madam Kristalina Georgieva 
Managing Director International Monetary Fund 
REF: DEBT RELIEF AND ARREARS CLEARANCE STRATEGY FOR ZIMBABWE TO SUPPORT THE AUTHORITIES’ RESPONSE TO THE GLOBAL COVID-19 PANDEMIC 
Introduction 
The global COVID-19 Pandemic is expected to have a devastating health, humanitarian and economic impact on Zimbabwe. Domestic resources to allow the authorities to mitigate the impact of the pandemic are insufficient and access to external financing is severely constrained due to external debt arrears. The Zimbabwean authorities propose a high-level dialogue on mitigating the economic and social downfall from COVID- I 9 Pandemic through transformative arrears clearance and re-engagement plan; short of which the country will suffer a health and economic catastrophe. Immediate financial support for health spending and the normalization of relationships with Zimbabwe’s creditors both bilateral and multilateral will be indispensable for as to be able to respond effectively to the global pandemic. As elaborated below, the Government is committed to undertake critical economic. governance, and political reforms. 
COVID-19 Pandemic Exacerbates an Already Difficult Economic Situation 
With cases increasing and the risks of a major outbreak very high, Zimbabwe must urgently scale up the emergency preparedness and containment response, to ensure that its health sector can respond accordingly and to minimize economic and social disruption from the global pandemic. The Government has prepared a comprehensive response strategy, but is short on the resources required to implement this strategy. 
The Zimbabwean economy contracted sharply in 2019, amplified by climate shocks that crippled agriculture and electricity generation. Growth is projected to contract further in 2020. with domestic demand expected to be significantly depressed from the lockdown put in place as a preventive measure to stop the spread of the virus. Cumulatively, Zimbabwe’s economy could contract by between 15 to 20 percent during 2019 and 2020 – this is a massive contraction with very serious social consequences. Already, 8.5 million Zimbabweans (half of the population) are food insecure, from Cyclone !dal and successive droughts, health services are inadequate. and poverty levels are rising. These indicators are expected to worsen. 
A Case for Immediate Financial Support for Zimbabwe 
Zimbabwe desperately needs urgent international support. The global pandemic will take a heavy toll on the health sector, with many being lives lost, and raise poverty to levels not seen in recent times, including worsening food insecurity. A domestic collapse also would ha, potentially adverse regional effects, where spillovers are significant. 
The international community is seeking to provide significant amounts of financial assistance to LICs to counter COVID-I 9 Pandemic. As part of this. you Madam as the Managing Director of the IMF and the World Bank Group President have called for debt relief for LICs to sup, their responses to the global pandemic. Despite its needs and low-income count, status. Zimbabwe is not eligible to benefit from these initiatives because of its official external debt arrears. 
In this regard, Zimbabwe is proposing a high level and urgent dialogue to advance a transformative financial support and arrears clearance plan that can mitigate the looming crisis. Immediate financial sup, for urgent health spending and the normalization of relationships with Zimbabwe’s creditors both bilateral and multilateral, will both be indispensable for us to be able to respond effectively to the global pandemic. The World Bank Group (WBG, estimates a financing gap of almost US$ 1billion in 2020 to finance spending for health, education. food security and social protection. Of this amount, about US$ 200 million is needed for unplanned COVID-19 Pandemic expenditures. 
Compensation of Former Farm Owners Affected by the Land Reform Program 
• Completion by June 2020 of the exercise to determine the Compensation Figure and signing of the Compensation Agreement with the Compensation Steering Committee of the former farm owners. 
Political Reforms 
• Government has already repealed POSA; 
• AIPPA repeal has been approved by Parliament through the approval of the Freedom of Information Bill which awaits the President’s signature; 
• Government will issue a time-framed program of aligning all national laws to the 2013 Constitution; 
• Government will provide a time-framed program for the omnibus Bill on Electoral Reforms, including setting up of a Parliament, Over-Sight Committee to implement the reforms before the constitutionally mandated next general elections; and 
• Government to continue with the process of engaging in National Dialogue. 
Coordination 
The Government is proposing to have a holistic effort, which is well-coordinated and monitored by the IMF, WBG, and MOB, to ensure consistency in the financial support, near-term macroeconomic stabilization, and long-term sustainable private sector-led growth, and allow us to build a track record towards macro-stabilization and potential future debt relief. 
Please be assured of my highest consideration. 
Hon. Prof. M. Ncube 
Minister of Finance and Economic Development 
Cc. Hon. C. Chiduwa, Deputy Minister for Finance and Economic Development; Dr. M.J.M. Sibanda. Chief Secretary to the President and Cabinet; G. Guvamatanga, Secretary for Finance and Economic Development. Dumisani Mahlinza. Executive Director, International Monetary Fund Patrick Amir Imam, Resident Representative for Zimbabwe, International Monetary Fund</blockquote>

FULL TEXT: Zim Finance Minister's Request Letter For Financial Assistance To IMF

The International Monetary Fund (IMF) Executive Board has approved immediate debt relief for 25 Countries.
This was announced in a statement that was issued on the 13th of April by Ms Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF).
We present her statement below.
<blockquote>Today, I am pleased to say that our Executive Board approved immediate debt service relief to 25 of the IMF’s member countries under the IMF’s revamped Catastrophe Containment and Relief Trust (CCRT) as part of the Fund’s response to help address the impact of the COVID-19 pandemic.
This provides grants to our poorest and most vulnerable members to cover their IMF debt obligations for an initial phase over the next six months and will help them channel more of their scarce financial resources towards vital emergency medical and other relief efforts.
The CCRT can currently provide about US$500 million in grant-based debt service relief, including the recent US$185 million pledge by the U.K. and US$100 million provided by Japan as immediately available resources. Others, including China and the Netherlands, are also stepping forward with important contributions. I urge other donors to help us replenish the Trust’s resources and boost further our ability to provide additional debt service relief for a full two years to our poorest member countries.
The countries that will receive debt service relief today are: Afghanistan, Benin, Burkina Faso, Central African Republic, Chad, Comoros, Congo, D.R., The Gambia, Guinea, Guinea-Bissau, Haiti, Liberia, Madagascar, Malawi, Mali, Mozambique, Nepal, Niger, Rwanda, São Tomé and Príncipe, Sierra Leone, Solomon Islands, Tajikistan, Togo, and Yemen.</blockquote>
It is not known why Zimbabwe is not among the relieved countries. Probably it is not among the “poorest and most vulnerable members” in the lenses of the IMF.
More: <a href="https://www.imf.org/en/News/Articles/2020/04/13/pr20151-imf-executive-board-approves-immediate-debt-relief-for-25-countries">IMF</a>

FULL LIST: 25 Countries Receive Debt Relief Service From IMF

Financial Times has reported that the relationship between the International Monetary Fund (IMF) and Zimbabwe is now at risk after the Reserve Bank of Zimbabwe secretly resumed printing of the Zimbabwe Dollar.
The IMF which was overseeing the country’s reform drive had advised the central bank to stop printing the money.
The fund on <a href="https://news.pindula.co.zw/2020/02/27/imf-projects-zimbabwes-growth-in-2020-at-near-zero-food-shortages-continuing/">Wednesday, however, said that the programme was “off-track” adding that </a>there was “uneven implementation of reforms, notably delays and missteps in FX and monetary reforms,” resulting in failure to restore confidence in the new currency.
Of great concern to the fund, according to senior officials in the Zimbabwean government,  was a recent discovery which showed that RBZ had, against the IMF’s advice, resumed printing the Zimbabwe dollar to provide state subsidies to gold producers.
The gold subsidy that was intended to support miners who are required by the central bank to convert much of their US dollar export earnings at the official exchange rate, was reportedly one of the central reasons that the IMF came to a conclusion that the programme is off-track.
The publication was further told that the subsidy has now been stopped and a plan to continue monetary reforms without IMF oversight is being crafted.
More: <a href="https://www.ft.com/content/4ae27da8-5967-11ea-abe5-8e03987b7b20">Financial Times</a>

RBZ Secretly Printing The Zimbabwe Dollar Putting IMF Assistance In Jeopardy

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Former Finance Minister of Zimbabwe, Tendai Biti has claimed that <a href="https://news.pindula.co.zw/2020/02/27/imf-projects-zimbabwes-growth-in-2020-at-near-zero-food-shortages-continuing/">the International Monetary Fund’s latest report on Zimbabwe</a> reveals that Zimbabwe is going nowhere with President Emmerson Mnangagwa’s government.
Posting on Twitter, Biti who is also the vice president of the MDC led by Nelson Chamisa said:
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The collapse of the <a class="link-complex" href="https://twitter.com/search?q=%23SMP" rel="hashtag noopener noreferrer" target="_blank">#SMP</a> &amp; the Fund’s damning Article 4 Staff Report confirms the truth that Zim is a rogue State run&amp; presided by a predatory mafia that is unwilling &amp; incapable of reform. Only 2 things matter to this rogue element, the <a class="link-complex" href="https://twitter.com/search?q=%23power" rel="hashtag noopener noreferrer" target="_blank">#power</a> retention agenda &amp; its bottom line. 
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There can never be reforms without reformers &amp; therefore expecting the <a class="link-complex" href="https://twitter.com/search?q=%23SMP" rel="hashtag noopener noreferrer" target="_blank">#SMP</a> to have succeeded was as ambitious as it was naive. In Emmerson &amp; his team lie a group of incompetent greedy reckless &amp; predatory characters without any comparison in the history of misgovernance.
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More than anything it is <a class="link-complex" href="https://twitter.com/search?q=%23CORRUPTION" rel="hashtag noopener noreferrer" target="_blank">#CORRUPTION</a> &amp; State Capture that has been the bane for the regime. Billions have been stolen through Command Agriculture, FX , fuel, export surrender requirements, procurement, TBs, subsidies &amp; commodities. Cartels (Sakunda)hold the regime hostage.
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The <a class="link-complex" href="https://twitter.com/search?q=%23RBZ" rel="hashtag noopener noreferrer" target="_blank">#RBZ</a> must bear a huge responsibility for the collapse of the <a class="link-complex" href="https://twitter.com/search?q=%23SMP" rel="hashtag noopener noreferrer" target="_blank">#SMP</a>. Its corrosive money printing activities have driven up money supply by over300% It’s quasi-fiscal activities &amp; opaque non-concessional loan contraction have been a parallel govt operating outside Parly. <time class="tweet-timestamp js-timestamp txt-mute flex-shrink--0" data-time="1582816691000" datetime="2020-02-27T15:18:11.000Z"> </time>
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Second, to the <a class="link-complex" href="https://twitter.com/search?q=%23RBZ" rel="hashtag noopener noreferrer" target="_blank">#RBZ</a> are the regime s policy distortions &amp; incompetence. The attempt to de-dollarize has been a complete disaster. Budget deficits &amp;an expansionary fiscal policy hidden at the <a class="link-complex" href="https://twitter.com/search?q=%23RBZ" rel="hashtag noopener noreferrer" target="_blank">#RBZ</a> , lack of reform, lies, deception &amp; deflection have been the regime s modus operandi.
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Zimbabwe is going nowhere with &amp; under <a class="link-complex" href="https://twitter.com/search?q=%23Emmerson" rel="hashtag noopener noreferrer" target="_blank">#Emmerson</a>. Having lost the backing of Fund shareholders his govt has nowhere to hide. An urgent rethink is required. Resolving the political crises, attending to structural reforms, national convergence &amp; a disruptive agenda the only solution.
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<a href="https://twitter.com/BitiTendai/status/1233048695148511233">More: Tendai Biti</a>
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FULL THREAD: "IMF Report On Zimbabwe Reveals Huge Incompetence And Deception By ED's Govt," - Former Finance Minister

Former Political Science lecturer at the University of Zimbabwe, Shakespeare Hamauswa who is also opposition MDC legislator for Warren Park constituency has said that the government’s Transitional Stabilization Programme (TSP) is doomed to fail.
The TSP is being implemented by the government in conjunction with the International Monetary Fund (IMF). Hamauswa posted on Twitter saying:
<blockquote>Transitional Stabilization Programme will not bring desired economic outcomes unless backed by a Political Transitional Authority. Cure the politics and economic stability and growth will be a bonus.</blockquote>
The government says that the TSP which runs from October 2018 to December 2020, was initiated in a bid to set the economy on a recovery path after years of stagnation.
Authorities observe that among other things, the TSP acknowledges policy reform initiatives of “the new dispensation to stimulate domestic production, exports, rebuilding and transforming the economy to an upper middle-income status by 2030.”
More: <a href="https://twitter.com/shamauswa/status/1210190829442289664">Shakespeare Hamauswa</a>

"Transitional Stabilization Programme Doomed To Fail," Former UZ Lecturer

Zimbabwe’s Finance Minister, Professor Mthuli Ncube has said that members of the public must not be concerned about the safety of public funds since they are in good hands.
His remarks come when some observers have said that the government was prioritising luxurious goods at the expense of basic public goods.
Speaking during a post-2020 National Budget breakfast meeting in Harare jointly organised by Zimpapers and ZBC, Ncube dismissed allegations that austerity measures under the Transitional Stabilisation Programme (TSP) were only targeting the ordinary citizen saying that Cabinet ministers were yet to receive some of their benefits. He added:
<blockquote>Government finances are in order; they are actually in good hands. I declare Government finances are in good hands. The deficit is under control. I think we have achieved a miracle; to achieve the twin-deficit target without external support, who does this? Only us, without external support.</blockquote>
Government critics, however, ridicule Ncube’s claim that Zimbabwe registered a surplus when he also claims that the country has a deficit.
They also say that the alleged surplus which is in the local currency must be converted into United States dollars since the country had a USD Budget.
More: <a href="https://www.herald.co.zw/tsp-delivers-a-miracle-says-minister/">The Herald</a>

"I Declare, Govt Finances Are In Good Hands." Zimbabwe Finance Minister

The World Bank (WB) has claimed that about a million people have been added to the group of people who were recorded as living in poverty last year.
In its recent Poverty and Equity brief, the Bretton Woods Institution attributed the sharp increase to natural disasters including Cyclone Idai which it said has worsened the situation in three key provinces that account for 30% of agricultural output. The WB added said:
<blockquote>Extreme poverty is estimated to have risen from 29 percent in 2018 to 34% in 2019, an increase from 4.7 to 5.7 million people. The increase is driven by economic contraction and the sharp rise in prices of food and basic commodities. Contraction of agricultural production following an El Nino induced drought worsened the situation in rural areas.</blockquote>
The WB also said that drought also contributed to the deterioration in standards of living as it worsened shortages in electricity and water “causing widespread rationing and tariff adjustments to manage costs”.
The report is consistent with reports by the International Monetary Fund and government statistics agency, ZIMSTAT who projected severe starvation for many citizens.
More: <a href="https://www.newzimbabwe.com/zim-extreme-poverty-surges-to-34-as-1-million-more-added-to-poor-bracket-world-bank/">New Zimbabwe</a>

"Sharp Increase To The Number Of Zimbabweans Living In Extreme Poverty," - World Bank

International Monetary Fund (IMF)) has attributed Zimbabwe’s economic woes to policies which were introduced by Finance Minister, Professor Mthuli Ncube.
The Bretton Woods institution issued a statement on Thursday following a two-week-long mission by its team to assess progress made under the Staff Monitored Programme.
IMF Chief of the African Department Gene Leon reported that the local currency has been depreciating since the February currency reform.
Leon also observed that the depreciation of the Zimbabwe dollar against the United States dollar enhanced high inflation, which reached <a href="https://news.pindula.co.zw/2019/09/27/imf-report-inflation-jumps-up-in-august/">almost 300% year-over-year in August.</a> He added:
<blockquote>Risks to budget execution are high as demands for further public sector wage increases, quasi-fiscal activities of the Reserve Bank of Zimbabwe that will need to be absorbed by the central government, and pressure to finance agriculture could push the deficit back into an unsustainable stance.</blockquote>
The IMF also observed that socio-economic conditions have deteriorated immensely during the period under review.
Leon also observed that the country’s crises were being worsened by the country’s failure to quickly engage the international community.
More: <a href="https://www.newzimbabwe.com/imf-blames-mthuli-ncubes-policies-for-igniting-economic-chaos/">New Zimbabwe</a>

IMF Attributes Zimbabwe's Economic Woes To Finance Minister's Policies

The International Monetary Fund (IMF) has reported that Zimbabwe’s annual inflation rate soared to nearly 300% in August.
In a statement after a two-week mission to Zimbabwe, the IMF said that the country’s year-on-year inflation rose mainly as a result of a collapsing currency.
The latest estimates suggest a major rise since inflation had stood at 176% in June this year.
The IMF projected that Zimbabwe’s GDP growth in 2019 will be steeply negative due to drought which has an adverse impact on agricultural production and electricity generation.
IMF also observed that social conditions had deteriorated sharply. It also indicated that weakening confidence, policy uncertainty, a continuation of foreign currency market distortions, and a recent expansionary monetary stance had increased pressure on the exchange rate.
Contrary to IMF findings, the local statistics agency, ZIMSTAT, earlier reported that <a href="https://news.pindula.co.zw/2019/09/17/august-inflation-falls-to-18-per-cent-zimstat/">month-on-month inflation rate had dropped</a> by 2.97 per cent in August this year. The report said that the rate of inflation had dropped to 18,07% from 21,04% in July.
This comes when Finance Minister, Mthuli Ncube, announced that the country will soon print its new currency.
He insists that conditions necessary to sustain the new currency are in place.
More: <a href="https://www.thenews.com.pk/print/532499-zimbabwe-inflation-soars-to-nearly-300-percent-imf">The News</a>

IMF Report: Inflation Jumps Up In August

A note that is purported to have been written by an official at the Reserve Bank of Zimbabwe has exposed massive underhand dealings at the central bank. The note suggested that the country was losing millions of United States dollars daily as some individuals were externalising proceeds from gold sales. We present the note below.
<img decoding="async" src="https://pbs.twimg.com/media/EE6vIwvXUAEFKFH?format=jpg&amp;name=large"/><img decoding="async" src="https://pbs.twimg.com/media/EE6vIw0WkAE4eMS?format=jpg&amp;name=large"/>

FULL TEXT: Note Purportedly Written By RBZ Insider Exposes Massive Corruption

The International Monetary Fund (IMF) has welcomed the monetary reforms which were recently announced by both the Ministry of Finance and Economic Development. The reforms were introduced through February 20 Monetary Policy Statement and SI 142 of 2019 in an endeavour to address economic distortions that have restrained macroeconomic stability.
Through SI 142 of 2019, Government outlawed the use of any foreign currency in local transactions. Pursuant to the introduction of the SI, the <a href="https://news.pindula.co.zw/2019/06/25/full-text-rbz-releases-measures-to-strengthen-the-new-currency/">RBZ introduced a raft of measures</a> which are meant to strengthen the local currency.
Commenting on the changes, IMF representative to Zimbabwe, Mr Patrick Imam, told Business Weekly in an interview that the latest measures are welcome. He said:
<blockquote>We welcome the reforms announced in the February 20 Monetary Policy Statement and June 24 press release, which seek to address economic distortions that have impaired macroeconomic stability.</blockquote>
He, however, noted that a lot still needs to be done so as to preserve financial stability. Imam added:
<blockquote>We encourage the authorities to continue ongoing efforts to implement a coherent monetary policy framework to pursue policies that preserve financial stability and ensure the orderly operation of payment systems and stop monetary financing of fiscal deficits to stabilise inflation and the exchange rate.
As part of this effort, more transparency in monthly data statistics on the execution of the budget ,but especially on the evolution of money and credit, will be important.</blockquote>
Imam also said that Zimbabwe’s economic policies under the TSP constitute a comprehensive stabilisation and structural reform programme to address Zimbabwe’s deep macroeconomic imbalances.
More: <a href="https://www.herald.co.zw/imf-welcomes-monetary-reforms/" rel="noopener noreferrer" target="_blank">The Herald</a>

IMF: We Welcome Reforms Which Seek To Address Economic Distortions

The International Monetary Fund (IMF) has said that the adoption of the Zimbabwe Dollar as sole tender is a sovereign decision by the Zimbabwe government. This comes after Zimbabwe introduced Statutory Instrument 142 of 2019 which bans the use of all foreign currencies for domestic transactions.
IMF representative to Zimbabwe, Patrick Imam, yesterday said that the Fund welcomes authorities’ implementation of and continued commitment to fiscal and monetary restraint. He said:
<blockquote>The adoption of the Zimbabwe dollar as sole legal tender is a sovereign decision by the government of Zimbabwe.</blockquote>
The government has partnered with the IMF as it embarks on STP to create conditions which are aimed at inducing economic recovery.
A fortnight ago, the IMF urged monetary authorities to stop the practice of levying taxes in US dollars so as to reduce pressure on the exchange rate by increasing demand on the RTGS$.
The IMF also recommended that the official exchange rate should be determined by the market on a willing-buyer-willing-seller basis. The IMF said:
<blockquote>This can be done by allowing FX (forex) earners to sell their FX surrender requirements directly in the foreign exchange market. This would help boost confidence, facilitate improved price discovery, and reduce FX market distortions.</blockquote>
Iman is also of the view that the printing of bond note could marginally decrease inflation because the speed of circulation of physical money is much lower than that of electronic money. He, however, cautioned that some would avoid the 2% tax by using a lot of bond notes.
More: <a href="https://www.theindependent.co.zw/2019/06/30/ncube-shocks-international-financial-institutions/" rel="noopener noreferrer" target="_blank">The Standard</a>

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