Minister of Information Monica Mutsvangwa has admitted that government has failed countless times in the implementation of its policies since the advent of the new republic.Minister Mutsvangwa alluded to the fact Zimbabwe failed through its Transitional Stabilisation Programme (TSP) and was now pinning its hopes on the latest National Development Strategy (NDS1).
Confirming government’s failure Mutsvangwa said
“Noting that previous economic blueprints, albeit with similar targets, have fallen short on implementation, NDS 1 is premised on the need for bold and transformative measures that will ensure achievement of the country’s vision of an empowered and prosperous upper middle-income society by 2030,” Mutsvangwa said.
“This framework is set to steer the economy on a growth trajectory averaging 5%, supported by a sustainable annual fiscal deficit target of around 1,2% of GDP [gross domestic product], exchange rate stability and single digit inflation.”
The NDS1 is the second blueprint launched by President Emmerson Mnangagwa’s administration, following in the footsteps of the Transitional Stabilisation Programme (TSP), which was launched in 2018 to run for two years but fell flat.
Zimbabwe has in the last three decades launched several economic recovery plans which missed their targets due to failure by authorities to implement reforms and keep expenditure within budget.
But the southern African nation is in the throes of its worst economic crisis in more than a decade underpinned by the continuing collapse of its Zimdollar on the more representative parallel market.
Its economic plight was made worse by the outbreak of the coronavirus that caused lockdowns which resulted in companies shedding jobs in an effort to stay afloat.
However, speaking during the post-Cabinet briefing yesterday, Information minister Monica Mutsvangwa said NDS1 was the magic wand to steer the economy on a growth trajectory and stabilise the exchange rate.
Critics say the authorities are maintaining an artificial exchange rate of $84,70 to the greenback while trading at $140 on the verdant black market.
Mutsvangwa said government would do away with “unmitigated and unbudgeted subsidies” as they undermined fiscal consolidation objectives under the new policy.
Clearly government has found a starting point by admitting failure now they must correct these very mistakes and face reality head on.