Mthuli Promises Price Stability

Continued price and currency stability are central to the 2021 national budget set to be presented on Thursday since with stability companies can plan and people can save, Finance and Economic Development Minister Professor Mthuli Ncube told a pre-budget seminar.

“The overarching goal for this Budget is to support macroeconomic stability in terms of prices and currency stability and stability in the general environment. Because with stability we can do so much: companies can plan, people can save, citizens can postpone consumption and they can invest because they will know that the value of their currency is being preserved.

Continued price and currency stability are central to the 2021 national budget set to be presented on Thursday since with stability companies can plan and people can save, Finance and Economic Development Minister Professor Mthuli Ncube told a pre-budget seminar.

“The overarching goal for this Budget is to support macroeconomic stability in terms of prices and currency stability and stability in the general environment. Because with stability we can do so much: companies can plan, people can save, citizens can postpone consumption and they can invest because they will know that the value of their currency is being preserved.

“In terms of specific measures, we will continue to support the Foreign Currency Auction System that we have put in place.”

Several Government Ministers who made presentations during the seminar held last week said Zimbabwe’s economy is poised for growth because of policies being implemented by the Second Republic.

The 2021 Budget presentation comes at a time when the economy is expected to grow by an average 5 percent a year, around 28 percent in total, over the five-year tenure of the newly-announced economic policy — the National Development Strategy (NDS1 2021-2025) — in line with President Mnangagwa’s Vision of transforming the economy to an upper middle income status by 2030.

In her address at the seminar, Industry and Commerce Minister Dr Sekai Nzenza said the state of the economy was not gloomy as stated in some sectors.

“There is a misperception out there. The misperception out there is that industry is gloomy. But that is not the correct perception when we look at industry in terms of the National Development Strategy 1,” she said.

“Already we have seen, since the introduction of the forex auction system, recoveries. We are already witnessing its impact. There are companies that are already celebrating the auction system and one is Lafarge and the price of cement is beginning to stabilise. Other companies that are doing well are Delta Beverages, Schweppes and Varun Beverages and yesterday I was at Nestle. Nestle’s capacity utilisation has moved to 85 percent and what this shows is that there is confidence in investing in Zimbabwe.”

While Covid-19 had disrupted operations of some companies there are some that actually registered growth.- State Media

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