( 3 minutes read)
· Zimbabwe’s Finance Minister Mthuli Ncube expects the economy would grow by 7.8% indicating a rebound of the economy in this financial year, as against a contraction of 6% experienced even before the onset of pandemic
· The economy was contracted partly because of natural disasters like cyclone Idai and a devastating drought that battered southern part of Africa
· Zimbabwe’s main creditors are the World Bank and the AfDB (African Development Bank) and European Investment (Bank)
Zimbabwe’s Finance Minister Mthuli Ncube expects the economy would grow by 7.8% indicating a rebound of the economy in this financial year, as against a contraction of 6% experienced even before the onset of pandemic. The economy contracted partly because of naturaldisasters like cyclone Idai and a devastating drought that battered the southern part of Africa.
Despite such eventualities, the Zimbabwean finance minister felt buoyed and maintained that the economy is fixable. Recently, the government has introduced a new currency. The country was unique in its monetary policy framework since it did not have a currency of its own.
Zimbabwe faced foreign currency and cash shortages, including an unsustainable budget deficit. It also faced difficulties in re-engaging with international lenders and investors after the Robert Mugabe regime. Now, the minister has claimed that the country has been engaging the creditors. The southern African country has begun repaying its US$8.0 billion external debt, which the finance minister was confident would continue, though most of the liquidation of external debts has been token.
Zimbabwe’s main creditors are the World Bank and the AfDB (African Development Bank) and European Investment (Bank). The country owes money to Paris Club members. The inflation, finance minister said, has begun to slow down from around 700% in 2020, to nearly 162 % last month, while the IMF projects growth of 3.1% for Zimbabwe’s economy.
