ZIMBABWE

THE 2024 NATIONAL BUDGET

“Consolidating Economic Transformation”

Presented to the Parliament of Zimbabwe

by

HON. PROF. MTHULI NCUBE

MINISTER OF FINANCE, ECONOMIC DEVELOPMENT AND

INVESTMENT PROMOTION

Harare, 30 November 2023

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 Contents
INTRODUCTION . . . . . . . . . . . . . . . . . . . 7
ECONOMIC DEVELOPMENTS . . . . . . . . . . . . . . 12
Global Economic Outlook . . . . . . . . . . . . . . . 12
Domestic Economic Developments and Outlook . . . . . . 20
Balance of Payments . . . . . . . . . . . . . . . . 29
Inflation Developments . . . . . . . . . . . . . . . 35
Exchange Rate Developments . . . . . . . . . . . . . 36
Public Finance Developments . . . . . . . . . . . . . 37
Public Debt . . . . . . . . . . . . . . . . . . . 43
Financial Sector Developments . . . . . . . . . . . . . 47
THE 2024 MACROECONOMIC FISCAL FRAMEWORK . . . . . 63
DEVELOPMENT PARTNER SUPPORT. . . . . . . . . . . 75
THE 2024 BUDGET PRIORITY AREAS . . . . . . . . . . . 77
Economic Growth and Macro-Stability . . . . . . . . . 78
2024 Fiscal Policy Thrust . . . . . . . . . . . . . 81
Price and Exchange Rate Stability . . . . . . . . . . 82
Currency Regime . . . . . . . . . . . . . . . . 84
Public Procurement . . . . . . . . . . . . . . . 85
Civil Service Remuneration . . . . . . . . . . . . 87
Budget Execution . . . . . . . . . . . . . . . . 90
Supporting Productive Value Chains . . . . . . . . . . 91
Agriculture . . . . . . . . . . . . . . . . . 92
Manufacturing . . . . . . . . . . . . . . . . . 104
Mining . . . . . . . . . . . . . . . . . . 109
Tourism . . . . . . . . . . . . . . . . . 114
Climate Change . . . . . . . . . . . . . . . . . 119
Infrastructure, ICT and the Digital Economy . . . . . . . . 121

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 Transport . . . . . . . . . . . . . . . . . . . 124
Energy . . . . . . . . . . . . . . . . . . . 132
Digital Economy . . . . . . . . . . . . . . . . . 136
Housing . . . . . . . . . . . . . . . . . . . 139
Water and Sanitation . . . . . . . . . . . . . . . 146
Youth, Sport, Arts and Culture . . . . . . . . . . . . . 151
Women, Gender Equity, SMEs and War Veterans . . . . . . 155
Persons with Disabilities . . . . . . . . . . . . . . 157
War Veterans . . . . . . . . . . . . . . . . . . 158
Human Capital Development and Well-Being . . . . . . . . 159

Health . . . . . . . . . . . . . . . . . . . 160

Education . . . . . . . . . . . . . . . . . . . 165

Skills Audit . . . . . . . . . . . . . . . . . . . 171

Social Protection . . . . . . . . . . . . . . . . . 172

Effective Institution Building and Governance . . . . . . . . 175

Ease of Doing Business Reforms . . . . . . . . . . . 175

State Enterprise and Parastatal (SEP) Reform . . . . . . 179

Corruption . . . . . . . . . . . . . . . . . . . 185

National Security . . . . . . . . . . . . . . . . . 186

Tripartite Negotiating Forum . . . . . . . . . . . . . 188

Oversight Institutions . . . . . . . . . . . . . . . 189

Devolution & Decentralisation . . . . . . . . . . . . . 191

Image Building, Engagement and Re-engagement . . . . . 195

REVENUE MEASURES . . . . . . . . . . . . . . . . 200

CONCLUSION . . . . . . . . . . . . . . . . . . . 248

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 List of Tables and Figures
Table 1: Global Economic Growth Projections 12
Table 2: Selected Sub-Saharan African GDP Growth (%) 14
Table 3: Selected SADC Countries GDP Growth Projections 15
Table 4: Global Inflation (%) 16
Table 5: International Commodities Indices 18
Table 6: Sectoral GDP Growth Rate (%) 21
Table 7: Selected Economic Indicators (Growth %) 22
Table 8: Sectoral Contribution to GDP (%) 23
Table 9: Agriculture Sector Output (000 tonnes) 24
Table 10: Mining Sector Output (000 tonnes) 25
Table 11: Lithium Producing Companies 26
Table 12: Volume of Manufacturing Index 27
Table 13: Electricity Supply and Demand 28
Table 14: Merchandise Exports (US$M) 30
Table 15: Merchandise Imports (US$M) 32
Table 16: Public Finance Performance (Z$B) 38
Table 17: Revenue Performance 39
Table 18: Expenditure Outturn (Z$B) 40
Table 19: Government Borrowing (Z$M) 42
Table 20: Total Debt Stock (Z$B) 43
Table 21: Total Debt Stock (US$M) 44
Table 22: Total Domestic Debt (Z$B) 45
Table 23: Public External Debt (US$M) 46
Table 24: External Debt Service (US$M) 47
Table 25: All Share 56
Table 26: Prescribed Asset Status Compliance Levels 63
Table 27: Macro-Fiscal Framework 64
Table 28: 2024 Annual Borrowing Plan (Z$M) 66
Table 29: 2024 External Loans in Pipeline 67
Table 30: Vote Allocations 68
Table 31: Expenditures Classified by Government Functions 77
Table 32: Development Partner Support 126
Table 33: Source of Funding for Road Projects 128
Table 34: Toll Gates to be Constructed and Upgraded 143
Table 35: Targeted Housing Delivery Projects 145
Table 36: Targeted Master and Spatial Development Plans 163
Table 37: Targeted Health Infrastructure Projects 169
Table 38: Infrastructure Projects for Higher and Tertiary Education 193
Table 39: 2024 Inter-Governmental Fiscal Transfers Allocation 201
Table 40: Revised Allowable Thresholds 215
Table 41: Proposed Surcharge Rates 216
Table 42: Proposed Toll Fees (US$) 224
Table 43: Proposed Vehicle Registration Fees 225
Table 44: Proposed Passports Fees 225

Figure 1: Global Inflation (%) 17

Figure 2: Merchandise Exports (US$M) 31
Figure 3: Merchandise Imports (US$M) 33
Figure 4: Current Account Developments 34
Figure 5: Annual Inflation Developments and Outlook 36
Figure 6: Exchange Rate Developments 37
Figure 7: Contribution to Total Revenue (%) 39
Figure 8: Banking Sector Foreign Currency Deposits 48
Figure 9: Sectoral Distribution of Loans 51
Figure 10: Non-Performing Loans Ratio 52
Figure 11: Broad Money Developments and Composition 54
Figure 12: ZSE indices 56
Figure 13: ZSE Market Capitalisation 57
Figure 14: ZSE Turnover 57
Figure 15: ZSE Foreign Participation 58
Figure 16: VFEX All Share Index 59
Figure 17: VFEX Turnover 59
Figure 18: VFEX Market Capitalisation 60
Figure 19: GDP Growth Vs NDS1 targets 79
Figure 20: Agriculture Sector Growth (%) 96
Figure 21: National Cattle Herd 98
Figure 22: Manufacturing Sector Growth (%) 104
Figure 23: Industry Capacity Utilisation (%) 105
Figure 24: Mining Sector Growth (%) 110
Figure 25: Mining Output (%) 110
Figure 26: Airlines Coming into the Country 117
Figure 27: FDI Inflows: 2021–2022 (US$ Billions) 176
Figure 28: FDI Inflows in Africa: 2021–2022 (US$ Billions) 177
Figure 29: Foreign Direct Investment inflows (US$M) 178

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6
INTRODUCTION

1. The formulation of the 2024 National Budget follows the

electoral mandate bestowed on the Second Republic by the
people of Zimbabwe through the August 2023 Harmonised
Elections. This, coming after the Mid-Term Review of the
National Development Strategy 1, allows Government to refine
policy actions at the level and scale required to accelerate
the realisation of the country’s vision of becoming an Upper
Middle-Income Society by 2030.

2. The mid-term review of NDS1 has identified the variance

between what was targeted, as well as achieved under each
of the 14 thematic areas of the Strategy. This will inform
interventions during the second half of NDS1 and beyond, as
the Nation strives to build a resilient, inclusive and sustainable
economy, that integrates every citizen in the country’s
development process.

3. In this regard, the 2024 National Budget presents an opportunity

to deepen and implement reforms that will ensure progress
towards the achievement of the nation’s Vision, as reiterated
by His Excellency, the President, Cde E. D. Mnangagwa’s
inaugural address on 3 September 2023, hence the theme
‘Consolidating Economic Transformation’.

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4. The President’s people centred development philosophy,
“Nyika inovakwa, igotongwa, igonamatigwa nevene vayo/
Ilizwe lakhiwa, libuswe, likhulekelwe ngabanikazi balo”,
enjoins all levels of Government and citizens to provide new
impetus to the country’s transformation agenda, by enhancing
production and productivity across all sectors of the economy,
one that builds a stronger economy and a fairer society, where
everyone can fulfil their dreams in dignity, peace and security.

5. When Government and the public genuinely collaborate, rapid

progress is inevitable and economic transformation across all
sectors of the economy is achievable. It is a commitment to
deliver broad-based growth and development, leaving no one
and no place behind, one that extends opportunities to the
majority of citizens and in every corner of the country.

6. It is a determination to ensure the full range of knowledge,

creativity and solutions from everyone in society is tapped into,
and an acknowledgement that where a segment of society, let
alone economic or social group, is excluded or left behind,
development is neither sustainable nor durable.

7. The Second Republic’s increased focus on the economy and

the commitment from the highest office in the land, provides
impetus to us all to undertake the necessary but difficult reform

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 measures that will stabilise the economy and fully exploit the
country’s potential for rapid inclusive growth and development.

8. The crafting of the 2024 National Budget benefitted from

contributions from a wide range of stakeholders during the
budget consultative process as mandated by the Public
Finance Management Act [Chapter 22:19] and other applicable
regulations, in line with the ‘whole of society’ and ‘whole of
Government’ approach to national development.

9. As part of these consultations, the 2nd Zimbabwe Economic

Development Conference, was held in Victoria Falls from 1 to 3
October, 2023, under the theme, “Public and Private Resource
Mobilisation for Sustainable Development”. Stakeholders debated
and proffered policy recommendations and strategies to
upscale mobilisation of resources for development, from both
the public and private sectors.

10. Stakeholders stressed the need to fully implement

macroeconomic stabilisation measures that address exchange
rate and inflation volatility, as an anchor to the transition
towards a mono-currency in the medium term.

11. Furthermore, the National Economic Consultative Forum, in

October 2023, organised the 2nd Infrastructure Summit and

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 Expo, in Victoria Falls, under the theme ‘Accelerating Transport
Infrastructure Development Projects in Zimbabwe: Towards
World Class Transport Networks by 2030’, where participants
discussed sustainable infrastructure funding models, among
other issues.

12. Parliament also undertook the Annual Pre-Budget Seminar

at the New Parliament Building in Mt Hampden, during the
period 1 to 4 November, 2023, where submissions from the
various Portfolio Committees and Hon. Members enhanced
the quality of this National Budget. In particular, the difficult
task of allocating the limited fiscal resources among the many
competing demands on the Budget was extensively discussed.

13. The key messages from these stakeholder engagements

have shaped policy proposals contained in this 2024 National
Budget.

14. Broadly, the focus areas and priorities from stakeholders

revolve around the following issues:

• Macro-economic stabilisation measures that will entrench

price and currency stability;
• Structural reforms aimed at improving the business
environment and promote private sector led sustainable
and inclusive growth;

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 • Interventions that facilitate structural economic
transformation and promote diversification, value addition
and domestication of value chains;
• Strengthening the capacity of public institutions and
governance systems to ensure that they provide quality
essential services, as well as respond to the needs of
citizens;
• Effective social protection programmes that cushion
vulnerable groups against shocks, including empowerment
of youths, women and marginalised groups;
• Upscale delivery of quality public infrastructure services
and security of supply for key enablers. This includes
provision of efficient technological infrastructure and
services necessary for a digital economy; and,
• Engagement and Re-engagement efforts that build
confidence and goodwill with external development
partners, as well as resolving the external debt arrears,
including debt restructuring.

15. Fiscal outlays, as well as prioritisation of programmes and

projects by MDAs have largely embraced the above focus
areas, which also form the basis of policy proposals that have
been included in this 2024 National Budget.

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ECONOMIC DEVELOPMENTS

16. This section provides the context to the 2024 National Budget
Macroeconomic Fiscal Framework, by reviewing global and
domestic economic developments and outlook prospects.

Global Economic Outlook

17. The global economy is expected to continue to recover

unevenly from the negative impact of the COVID-19 pandemic,
and the cost-of-living crisis. The unprecedented tightening
of global monetary conditions in response to decades-high
inflation levels has slowed the pace of the recovery of the
global economy. In that light, prospects for global growth are
anticipated to be at risk over the medium term.

18. Consequently, the International Monetary Fund (IMF), World

Economic Outlook (WEO) forecast for October 2023 projects
global growth to slow down from 3.5% estimated in 2022, to
3% during 2023 and 2.9% for 2024.

Table 1: Global Economic Growth Projections

2022 2023 Proj. 2024 Proj
World 3.5 3.0 2.9
Advanced economies 2.6 1.5 1.4
United Kingdom 4.1 0.5 0.6
United States 2.1 2.1 1.2
European Union 3.3 0.7 1.5
Emerging market 4.1 4.0 4.0

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 2022 2023 Proj. 2024 Proj
China* 3.0 5.4* 4.6*
India 7.2 6.3 6.3
Sub-Saharan Africa 4.0 3.3 4.0
Nigeria 3.3 2.9 3.1
Source: IMF World Economic Outlook (October 2023)

19. Growth in advanced economies is projected at 1.5% in 2023

from 2.6% in 2022, with the 2024 growth maintained at the
July 2023 projection of 1.4%, mainly as a result of stronger
than expected growth in the United States and weaker than
expected growth in the Euro Area. About 93% of advanced
economies are projected to see a decline in growth in 2023.

20. On the other hand, growth prospects for emerging markets

and developing economies are projected to marginally decline,
from 4.1% in 2022 to 4% in both 2023 and 2024, reflecting a
slowdown in growth in China.

Sub-Saharan Africa

21. Economic activity in the Sub-Saharan African countries during

2023 has been difficult, mainly due to tight financial conditions,
elevated spreads, and ongoing exchange rate pressures. As a
result, growth in 2023 is expected to fall to 3.3% from 4% last
year, 2022.

22. Growth in the Sub-Saharan Africa is projected to pick up to 4%

in 2024, mainly driven by strong performances in non-resource
intensive countries.

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23. Most economies, however, continue to grapple with elevated
levels of inflation and exchange rate pressures, which
have necessitated high central bank policy rates and the
continuation of tight financial conditions. In addition, growth
is being undermined by decline in global demand, security
issues in the oil producing countries and power shortages in
the Southern African region, among other factors.

24. The geopolitical tensions, coupled with recurrent climate

change related shocks are also hampering economic activity
within the Sub-Saharan Africa.

Table 2: Selected Sub-Saharan African GDP Growth (%)

2022 2023 Prj 2024 Prj
Sub-Saharan 4.0 3.3 4.0
Fuel Exporters 3.2 2.6 3.1
Nigeria 3.3 2.9 3.1
Angola 3.0 1.3 3.3
Middle-Income Countries 3.4 2.6 3.3
South Africa 1.9 0.9 1.8
Mauritius 8.7 5.1 3.8
Low Income Countries 5.6 5.3 5.7
Ethiopia 6.4 6.1 6.2
Zambia 4.7 3.6 4.3
Malawi 0.8 1.7 3.3
Source: IMF REO October 2023 Update

25. Growth in the region continues to be uneven, in particular, the

divergence between resource-intensive and non-resource-
intensive countries. Both groups of economies are expected
to recover next year, but at different paces.

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26. Subdued commodity prices will continue to weigh down on
export growth for most resource-intensive economies, but
overall growth is expected to improve from 2.6% in 2023, to
3.2% in 2024, mainly on account of private consumption and
in some cases, a number of new (or repaired) hydrocarbon
projects coming on stream (Niger and Senegal), and mining
projects starting production (Democratic Republic of the
Congo, Liberia, Mali and Sierra Leone).

27. Growth in non-resource intensive countries, on the other hand,

will be supported by both consumption and investment and is
expected to improve from 5.3% in 2023, to 5.9% in 2024.

Southern African Region

28. The real GDP growth rate of the Southern African Development
Community (SADC) is projected to decelerate to 1.6% in 2023
from 2.7% in 2022, before recovering to 2.7% in 2024 as
shown in the Table below.
Table 3: Selected SADC Countries GDP Growth Projections
2022 Est 2023 Prj 2024 Prj
SADC* 2.7 1.6 2.7
Botswana 5.8 3.8 4.1
Lesotho 2.1 2.1 2.3
Madagascar 4.0 4.0 4.8
Mozambique 4.2 7.0 5.0
Namibia 4.6 2.8 2.7
Eswatini 3.6 3.1 3.3
Tanzania 4.7 5.2 6.1
Zimbabwe** 6.5 5.5 3.5
Source:* AfDB African Economic Outlook, July 2023 Estimates/ **ZIMSTAT/ MoFEDIP/ RBZ Estimates, IMF
REO October 2023 Update

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29. Growth in the region is being weighed down by intense adverse
weather events, coupled with the external debt burden, which
is forecasted to remain high. In addition, major economies
such as South Africa continue to face a number of challenges,
particularly power shortages and weak domestic demand,
owing to tightening global financial conditions.

Global Inflation

30. Declining international commodity prices and monetary policy

tightening have dampened headline inflation during 2023.
Nearly three-quarters of economies are expected to see lower
headline inflation in 2023. The pace of disinflation is especially
pronounced for advanced economies that have stronger
monetary policy frameworks, which facilitate disinflation, as
well as their lower exposure to shocks to commodity prices
and volatile exchange rates.

31. In this regard, global headline inflation is projected to decelerate

to 4.8% in 2024 on a year-over-year basis, from 8.7% and
5.9% recorded in 2022 and 2023, respectively.

Table 4: Global Inflation (%)

2022 2023 2024
World 8.7 5.9 4.8
Advanced Economies 7.3 4.6 3.0
Emerging Market and Developing Economies 9.8 8.5 7.8
Source: IMF World Economic Outlook (October 2023)

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 Table 4: Global Inflation (%)
2022 2023 2024
World 8.7 5.9 4.8
Advanced Economies 7.3 4.6 3.0
Emerging Market and Developing Economies 9.8 8.5 7.8
Source: IMF World Economic Outlook (October 2023)
32. Global core inflation, excluding food and energy prices, is
32. also
Global projected
core inflation, to decline,
excluding albeit
food and more
energy prices,gradually than
is also projected headline
to decline, albeit
more gradually than headline inflation, to 4.5% in 2024.
inflation, to 4.5% in 2024.

Figure 1: Global Inflation (%)

Figure 1: Global Inflation (%)
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Source: WEO
Source: WEOOctober
October2023
2023

International Commodity Prices

International Commodity Prices
33. International commodity prices have declined from their record levels of 2022, but remain well
33. International commodity prices have declined from their record
above their pre-pandemic (2015-2019) average. In the outlook period, commodity prices are
levels of 2022, but remain well above their pre-pandemic
7
(2015-2019) average. In the outlook period, commodity prices
are expected to remain broadly unchanged over the remainder
of 2023 and into 2024, amid improved supply prospects and
weakening global demand.

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 Table 5: International Commodities Indices
2020 2021 2022 Oct 2023 2024
Energy 52.7 95.4 152.6 108.6 103.7
Non-Energy 84.1 112.5 124.4 111.5 108.0
Agriculture 87.1 108.3 122.7 113.9 112.2
Beverages 80.4 93.5 106.3 106.3 100.9
Food 93.1 121.8 143.7 131.1 129.1
Oils & Meals 89.8 127.1 145.2 120.4 117.3
Grains 95.3 123.8 150.4 133.4 129.6
Other Food 95.5 113.1 135.6 142.9 144.1
Raw Materials 75.8 82.9 80.3 76.0 76.9
Timber 86.4 90.4 80.1 79.9 81.2
Other Raw Materials 64.2 74.8 80.5 71.8 72.2
Fertilizers 74.6 152.3 235.7 156.5 132.4
Metals & Minerals 79.1 116.4 115.0 101.4 96.6
Base Metals 80.2 117.7 122.4 107.8 102.3
Precious Metals 133.5 140.2 136.8 138.4 145.1
Source: WEO October 2023

34. Natural gas prices significantly declined from their August

2022 peak and wheat prices had a similar decline from their
May 2022 peak, both reflecting improved supply prospects
and the redirection of trade.

35. Energy price forecasts have been downgraded sharply and

the energy price index is expected to fall by 28.8% and 4.5%
in 2023 and 2024, respectively. Brent crude oil prices are
forecast to average US$84 per barrel in 2023. Weaker global
demand has already caused these prices to drop 15% below
the 2022 average, and are projected to remain at that level
during 2024.

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36. The base metal price index surged in the second and third
quarter of 2022, before retreating due to slowing down global
economic growth, with prices expected to fall by 5.5% on
average in 2022, and decreasing by a further 12% in 2023.

37. Metals and minerals prices, which briefly increased in January

2023, are expected to fall by 11.8% in 2023, relative to 2022
and a further 4.8% in 2024. The decrease is a result of the
anticipated weak global demand in manufacturing and China’s
recovery which is expected to be heavily services-oriented.
Strong supply growth is projected over the forecast horizon,
supported by a recovery from production outages and new
mines coming on stream for key metals (copper, nickel, and
zinc).

38. On the contrary, precious metals prices are expected to

increase by 1.2% in 2023 and a further 5% in 2024, as safe-
haven demand rises amid elevated global risks, with respect
to future growth prospects, ongoing concerns about inflation,
and financial stress in the first quarter.

39. International food prices are expected to fall by 8.8% in 2023

and by a further 1.5% in 2024, assuming that grain and
oilseed exports from the Black Sea region will remain stable.
Nevertheless, real food prices in 2023 will remain at their
second highest levels since 1975, exceeded only in 2022.

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40. Price surges on the global food markets has contributed to
increase in domestic inflation, limiting the effectiveness of
monetary policy tools and strategies, especially in countries
where food accounts for a large portion of the total food
consumption basket.

Domestic Economic Developments and Outlook

41. The domestic economy is now projected to grow by 5.5% in

2023, a slight upward revision from the August projection of
5.3%, on account of better-than-expected output in agriculture,
in particular, tobacco, wheat and cotton.

42. However, economic growth is expected to slow down to

3.5% in 2024, mainly owing to the anticipated impact of
the El-Nino phenomenon being forecasted for the 2023/24
summer cropping season on agricultural output, as well as
declining mineral commodity prices attributable to the global
economic slowdown.

43. The positive growth of 3.5% in 2024 will be driven by mining

(+7.6%) and accommodation and food services (+6.9%), while
the agriculture sector is projected to contract by (-4.9%).

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 Table 6: Sectoral GDP Growth Rate (%)
Weight 2022 2023 2024 2025 2026
Agriculture, Hunting and Fishing and 12.0 6.2 11.1 -4.9 10.1 5.2
forestry
Mining and quarrying 13.2 10.5 4.8 7.6 4.9 4.8

Manufacturing 11.2 1.6 2.2 1.6 2.7 2.5

Electricity, gas, steam and air conditioning 3.4 3.5 -4.9 17.4 5.3 4.6
supply
Water supply; sewerage, 0.3 1.7 3.8 3.7 5.8 0.1

Construction 2.8 1.9 4.0 3.4 3.8 4.3

Wholesale and retail trade; repair of motor 18.7 4.6 5.5 4.2 4.4 7.4
vehicles
Transportation and storage 1.9 6.6 6.6 4.4 7.8 4.3

Accommodation and food service activities 1.6 23.7 12.1 6.9 4.2 4.2

Information and communication 6.2 14.1 9.4 4.8 6.4 5.4

Financial and insurance activities 8.2 15.6 6.1 4.5 3.9 4.4
Real estate activities 2.9 0.1 3.9 2.7 1.1 3.5
Professional, scientific and technical activ- 1.0 -0.3 2.6 3.7 5.9 7.2
ities
Administrative and support service activities 1.1 1.7 2.1 0.9 3.7 4.8

Public administration and defence 2.3 4.3 2.1 0.9 3.7 4.8

Education 2.8 5.5 4.7 4.8 2.1 2.0

Human health and social work activities 2.6 -1.7 7.0 5.6 6.5 6.2

Overall Growth Rate 6.5 5.5 3.5 5.0 5.0

Source: MOFED, ZIMSTAT, RBZ

44. In the main, industry and services sectors are expected to

drive economic activities in 2024, with growth rate of 6.3%
and 4.1%, respectively, which will, however, be weighed down
by the 4.9% contraction in the agriculture sector.

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 Table 7: Selected Economic Indicators (Growth %)
2021 2022 2023e 2024f 2025f
Real GDP Growth (Production) 8.4 6.4 5.5 3.5 5
Agriculture 17.5 6.2 11.1 -4.9 10.1
Industry 6.6 5.9 2.6 6.3 3.7
Services 7.5 6.7 5.7 4.1 4.6
Real GDP Growth (Expenditure) 8.5 6.5 5.5 3.5 5
Household Consumption 3.5 1.1 3.0 3.4 6.5
Government Consumption 30.5 70.7 13.0 3.9 4.7
Gross Capital Formation -3.8 22.5 3.8 2.7 3.8
Exports, Goods and Services 41.1 29 13.2 5.4 4.5
Imports, Goods and Services 54.8 40.4 5.5 3.5 5.0
Current Account Balance (% of GDP) 1 1 0.7 0.1 -0.1
Fiscal Balance (% of GDP) -2 0.2 -1.2 -1.5 -1.2
Primary Balance (% of GDP) -1.9 0.3 -1 -1.1 -0.9
Source MOFED, ZIMSTAT, RBZ

45. From the expenditure side, household consumption and gross

fixed capital formation are projected to grow by 3.4% and
2.7%, respectively.

46. The 2024 GDP projections are underpinned by the following

broad assumptions:

• Normal to below normal rainfall season due to the El-Nino

effect;
• Slowdown in global economic growth and continued geo-
political tensions;
• Declining international commodity prices;
• Continued use of the multicurrency regime; and
• Tight fiscal and monetary policies.

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47. In terms of the composition of GDP in 2024, agriculture, mining
and manufacturing contribute 11.6%, 13.7% and 10.6%,
respectively.

Table 8: Sectoral Contribution to GDP (%)

2021 2022 2023 2024

Agriculture, Hunting and Fishing and forestry 12.0 12.0 12.6 11.6
Mining and quarrying 12.8 13.2 13.2 13.7
Manufacturing 11.7 11.2 10.8 10.6
Electricity, gas, steam and air conditioning supply 3.5 3.4 3.1 3.5
Water supply; sewerage, waste management 0.3 0.3 0.3 0.3
Construction 2.9 2.8 2.8 2.8
Wholesale and retail trade; 19.1 18.7 18.8 18.9
Transportation and storage 1.9 1.9 2.0 2.0
Accommodation and food service activities 1.4 1.6 1.7 1.7
Information and communication 5.8 6.2 6.5 6.6
Financial and insurance activities 7.5 8.2 8.2 8.3
Real estate activities 3.1 2.9 2.8 2.8
Professional, scientific and technical activities 1.1 1.0 1.0 1.0
Administrative and support service activities 1.1 1.1 1.0 1.0
Public administration and defence; compulsory social security 2.4 2.3 2.3 2.2
Education 2.8 2.8 2.7 2.8
Human health and social work activities 2.8 2.6 2.7 2.7
GDP at Market Prices 100.0 100.0 100.0 100.0
Source: MoFEDIP

Sectoral Developments and Outlook

48. In 2024, the agriculture sector is projected to contract by

-4.9% due to the anticipated normal to below-normal rainfall
pattern during the forthcoming 2023/24 farming season. The
El-Nino phenomena which is associated with extreme weather
patterns, is expected to undermine agriculture production,
especially for maize.

23
 Table 9: Agriculture Sector Output (000 tonnes)
Weights 2023 Initial 2023 Rev 2024 Proj.
Overall Growth 4 11.1 -4.9
Tobacco (flue-cured) 22.86 220 297 300
Maize 17.18 2000 2298 1100
Beef 3.79 98 103 109
Cotton 3.71 65 90 90
Sugar cane 7.45 4551 4653 4650
Horticulture 11.72 101 106 100
Poultry 1.03 174 174 170
Groundnuts 5.23 100 163 112.4
Wheat 12.39 365 400 400
Dairy (m lt) 1.92 116 115 116
Soybeans 1.85 85 106 108
Tea 1.90 39 39 39
Pork 0.26 15 16 18
Sorghum 3.10 148 161 217
Barley 0.40 25 42 42
Sheep & goats 0.57 9 9 10
Sunflower seeds 0.18 15 73 78
Source: MOFEDIP, RBZ & ZIMSTAT

49. To mitigate the impact of the El-Nino phenomenon on the

country’s food security situation, the following measures are
being implemented:

• Distribution of seed varieties appropriate for each ecological

region, with farmers being encouraged to stagger the
planting of crops;
• Early importation of grain when prices are still low;
• Maximise utilisation of available irrigable land for the
production of strategic crops; and
• Implement an aggressive cloud seeding programme.

24
50. The mining sector is expected to grow by 7.6% in 2024, driven
mainly by ongoing investment in PGMs, gold, coal and lithium.
The growth will also be sustained by expected relatively stable
electricity supply on account of increased domestic electricity
production, complemented by direct import initiatives by
large scale miners and private sector investment initiatives in
renewable energy, especially solar.

51. The sector, however, faces risks related to declining mineral

commodity prices, particularly for PGMs which have the
potential of scaling down ongoing expansion projects in the
medium to long term.

Table 10: Mining Sector Output (000 tonnes)

Weights 2022 2023 Initial 2023 Rev 2024 Proj
Overall Growth 12.4 9.1 4.8 7.6
Black Granite \t 0.2 392.4 420.0 420 449
Chrome \t 6.8 1,109.8 1,500.0 1,500 1,530
Coal \t 4.1 4,185.4 4,200.0 4,353 5,500
Cobalt \t 0.2 211.2 387.0 350 580
Copper \t 1.4 10,168.1 9,684.0 10,473 10,200
Gold \kg 44.4 37,265.2 40,000.0 36,000 39,000
Lithium \t 0.3 102,420 881,709 881,709 1,113,965
Iridium \t 0.5 601.2 672.0 619 637
Nickel \t 5.4 14,259.7 14,300.0 14,300 14,690
Palladium \kg 16.1 13,934.6 13,481.0 14,214 14,639
Phosphate \t 0.2 21,910.2 25,000.0 22,129 42,000
Platinum \kg 11.3 16,459.9 16,500.0 16,954 17,462
Rhodium \kg 3.6 1,461.1 1,551.0 1,505 1,550
Ruthenium \kg 0.3 1,341.5 1,373.0 1,382 1423
Vermiculite\t 0.1 26,380.3 26,908 26,908 30,406
Diamonds (Carats) 5.0 4,844.0 5,500.0 5,500 5,900
Source: MoFEDIP, ZIMSTAT & RBZ

25
52. Lithium output is expected to increase to 1.1 million tonnes,
benefiting from various mines such as Zulu mine and others
that have already been commissioned in 2023, together with
additional companies expected to be commissioned in 2024.

Table 11: Lithium Producing Companies

Mining Company
1. SINOMINE BIKITA MINERALS Petalite
Spodumene Concentrate
2. SABI STAR Lithium Concentrates
3. PROSPECT LITHIUM ZIMBABWE Petalite
High Ferrous Content Petalite
Concentrate
Spodumene Concentrate
4. ZULU LITHIUM (REGENT RESOURCES) Spodumene Concentrate
5. SANDAWANA (KUVIMBA) Lithium Ore
6. KAMATIVI Lithium Ore

53. In terms of beneficiation, Prospect Resources Zimbabwe,

Bikita Minerals and Zulu Lithium have successfully constructed
lithium processing plants to beneficiate ore to the second
stage of concentrate level. The aim is to beneficiate lithium up
to carbonate level, fourth state of beneficiation in the medium
term. The ultimate objective is the local manufacturing of
lithium batteries for electric vehicles.

54. With regards to the manufacturing sector, growth is expected to

slow down to 1.6% during 2024, mainly due to the anticipated
lower agriculture output and the impact of the credit crunch.
The lower positive growth, however, will be driven by improved
electricity supply and continued investments in the sector.

26
 Table 12: Volume of Manufacturing Index
Weights 2022 2023 2024
Overall Growth (%) 1.6 2.2 1.6
Foodstuffs 379 395.4 397.0 402
Drinks, Tobacco and Beverages 200 391.7 396.0 400
Textiles and Ginning 25 38.5 39.0 41.0
Clothing and Footwear 9 265.7 260.0 258.0
Wood and Furniture 8 369.8 372.3 374.5
Paper, printing and Publishing 40 569.3 650.0 600
Chemical and Petroleum Products 116 80.4 84.0 84.7
Non-metallic mineral products 116 329.7 350.0 370.0
Metals and Metal products 72 338.3 330.0 360.8
Transport, Equipment 1 128.0 128.0 129.0
Other manufactured goods 35 45.8 55.0 55.0
Manufacturing Index 1 1000.0 330.8 338.0 343.4
Source: MoFEDIP, ZIMSTAT, RBZ

55. In 2024, electricity generation is expected to recover by

17.4%, on account of expected full commercialisation of
Hwange 7 & 8 and upscaling of maintenance programmes, as
well as expected new solar IPP projects. However, electricity
generation at Kariba and Hwange 1-6 will remain constrained
by low water levels and the ongoing life extension programme,
respectively.

56. Notwithstanding the enhanced electricity generation, a supply

gap of about 400 MW/h is expected, and will be partly met
through imports.

27
 Table 13: Electricity Supply and Demand
Average MW 2023 Average MW 2024
Hwange 1-6 260.0 350
Hwange 7 & 8 300.0 600
Kariba 404.0 250
IPPs 33.0 80
Total Domestic 1,026.0 1,280.00
Imports 300.0 200
Total supply 1,326.0 1,480.00
National Demand 1,700.0 1,866.70
Short Fall -374.0 -386.70
Source: MoFEDIP, ZIMSTAT, RBZ

57. Sustainability of electricity supply to the economy going

forward will be dependent on progress being made on the
restructuring of ZESA, complemented by critical governance
reforms, including charging of commercially viable tariffs, as
well as promotion of private investment in renewable energy
sources.

58. The tourism industry is experiencing a resurgence and is

expected to grow by 6.9% in 2024, driven by growing interest
from international tourists, increased travel and trade in the
region, the ongoing global tourism recovery and improved
accessibility to Zimbabwe made possible by improved
infrastructure and the entry of new airlines into the country.
These developments indicate promising prospects for the
country’s tourism sector.

28
59. During the period January to September 2023, tourist arrivals
increased by 52%, reaching 1,087,445 from 714,621 during
the same period in 2022. Most source markets saw an increase
in arrivals, notably the Middle East (153%) and Africa (76%).
As a result, tourism receipts increased by 18%, to US$724
million, up from US$615 million realised in the same period in
2022.

60. Other sectors are also projected to contribute positively

to economic growth, with information and communication
projected to grow by 4.8%, transport 4.2% and construction
3.4% in 2024.

61. Growth in the information and communication sector will be

driven by a renewed focus on digitalisation, increased data-
centric services and the transition from PSTN to VoIP, whilst
the construction sector will be sustained mainly by private
sector construction activities.

Balance of Payments

62. Merchandise exports rose by 1.5% from US$5.1 billion

during the first nine months of 2022, to US$5.2 billion in
the corresponding period in 2023. Mineral exports, which
constitute about 80% of the country’s merchandise exports,

29
 however, declined by 2.3% to US$4.1 billion from US$4.2
billion in the first nine months of 2022, primarily driven by the
ongoing retreat of key commodity prices, mainly PGMS.

63. To year end, merchandise exports are projected to increase

by 4.3%, from US$7 billion in 2022 to US$7.3 billion in 2023,
on account of higher tobacco, lithium, and diamond exports.

Table 14: Merchandise Exports (US$M)

2023 2024 22/23 23/24
Change Change
(%) (%)
Agricultural Exports 1,240.1 1,316.3 16.2 6.1
Tobacco 1,090.8 1,172.0 17.8 7.4
Horticulture 41.6 46.0 0.7 10.6
Mac Nuts 7.4 7.6 -4.6 3.0
Citrus 9.3 9.1 -3.5 -2.3
Flowers 3.9 3.5 12.8 -9.7
Fresh Produce 20.4 25.0 1.9 22.5
Hides 29.0 29.9 26.1 3.0
Mineral Exports 5,628.8 5,891.5 1.0 4.7
Gold 1,871.1 1,818.8 -6.3 -2.8
PGMs 1,403.6 1,328.4 -36.8 -5.4
Chrome & HCF 455.8 480.1 3.1 5.3
Diamonds 476.8 290.4 222.5 -39.1
Coke 185.7 209.6 28.2 12.9
Lithium 717.9 1,216.2 917.0 69.4
Nickel 58.6 61.3 -8.2 4.6
Manufactured Exports 430.7 446.5 19.1 3.7
Refined Sugar 28.3 33.0 46.3 16.6
Cigarettes 105.9 109.0 64.0 3.0
Wood & Timber 10.5 10.8 -20.7 3.0
Metal Products 16.5 17.0 3.4 3.0
Electricals Products 39.7 40.9 12.6 3.0
Merchandise Exports 7,299.7 7,654.3 4.3 4.9
Source: RBZ

30
 Nickel 58.6 61.3 -8.2 4.6
Manufactured Exports 430.7 446.5 19.1 3.7
Refined Sugar 28.3 33.0 46.3 16.6
Cigarettes 105.9 109.0 64.0 3.0
Wood & Timber 10.5 10.8 -20.7 3.0
Metal Products 16.5 17.0 3.4 3.0
Electricals Products 39.7 40.9 12.6 3.0
Merchandise Exports 7,299.7 7,654.3 4.3 4.9
Source: RBZ
64. In 2024, despite the softening of commodity prices of key

64. minerals, in the

In 2024, despite particular
softening ofPGMs, exports
commodity prices of are projected
key minerals, to remain
in particular PGMs,
on theareincrease
exports sustained
projected to remain by growth
on the increase sustainedin output
by growth fromfrom
in output lithium,
lithium,
coke and
coke tobacco
and to US$7.7tobillion.
tobacco US$7.7 billion.

Figure 2: MerchandiseFigure
Exports (US$M)
2: Merchandise Exports (US$M)
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Source: RBZ

65. Merchandise imports registered a 4.7% increase, from US$6

16
billion in the first nine months of 2022, to US$6.3 billion during
the same period in 2023, driven by growth in fuel, machinery,
and electricity imports. In 2023, merchandise imports are
projected at US$8.5 billion, 4.9% up from US$8.1 billion in
2022.

31
 Table 15: Merchandise Imports (US$M)
2023 2024 22/23 23/24
Change (%) Change
(%)
Food 597.9 586.1 15.0 -2.0
Maize 96.8 120.1 169.5 24.1

Wheat 120.8 83.7 20.1 -30.7

Rice 158.0 158.8 2.2 0.5

Other 222.3 223.5 -2.8 0.5

Non-food 7929.9 8381.8 4.2 5.7

Fuel 1530.6 1581.2 14.1 3.3

Diesel 916.7 959.4 16.8 4.7

Petrol 438.3 450.9 10.4 2.9

Raw Materials 2852.1 3023.2 -1.4 6.0
Machinery 2005.9 2126.2 11.4 6.0

Manufactured Goods 585.1 620.2 -0.3 6.0

Vehicles 665.3 708.2 4.4 6.5

Oils and Fats 279.9 285.4 -24.1 2.0

Electricity 195.2 210.2 -4.5 7.7

Merchandise Imports 8527.8 8967.9 4.9 5.2

Source RBZ

66. Imports are projected to increase to US$9 billion in 2024, on

account of higher imports of grain, energy, raw materials and
machinery imports.

32
 Figure 3: MerchandiseFigure 3: Merchandise
Imports (US$M) Imports (US$M)
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Source: RBZ
Source: RBZ

67. Services trade is recovering from the Covid-19 pandemic shock with travel, passengers
67. Services trade
transport and other is recovering
key services from
beginning to trend up. the Covid-19 pandemic
shock with travel, passengers transport and other key services
68. Services exportstoaretrend
beginning projected
up.to increase from US$453.3 million in 2022, to US$456.7 million
in 2023, and are projected to further increase to US$481.5 million in 2024, driven by travel
and transport services.
68. Services exports are projected to increase from US$453.3

69. million in 2022,

Services imports to US$456.7
are expected to increasemillion
to US$1.6inbillion,
2023, and
driven are projected
by travel, transport and
to further
other businessincrease
services. to US$481.5 million in 2024, driven by travel

and transport services.

70. Secondary income inflows, specifically remittances, are projected to continue driving the
current account surplus and are projected to close 2023 at US$2.1 billion before rising further
69. Services imports are expected to increase to US$1.6 billion,
to US$2.2 billion in 2024.
driven by travel, transport and other business services.
Current Account

71. The current account surplus is projected to close the year 2023 at US$244.4 million, slightly
lower than the US$305 million registered in 2022. In 2024, the current account surplus is
33

18
70. Secondary income inflows, specifically remittances, are
projected to continue driving the current account surplus and
are projected to close 2023 at US$2.1 billion before rising
further to US$2.2 billion in 2024.

Current Account

71. The current account surplus is projected to close the year

2023 at US$244.4 million, slightly lower than the US$305
million registered in 2022. In 2024, the current account surplus
is projected to narrow to US$204.5 million, reflecting a wider
trade deficit, as imports accelerate at a faster pace than
projected to narrow to US$204.5 million, reflecting a wider trade deficit, as imports accelerate
exports.
at a faster pace than exports.

FigureDevelopments
Figure 4: Current Account 4: Current Account Developments
4000
3000
2000
1000
0
-1000
-2000
-3000
-4000
-5000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Balance on Goods Balance on Services

Balance on Primary Income Balance on Secondary Income
Source: RBZ
Source: RBZ

Inflation Developments

72. Domestic prices have relatively been stable since the third quarter of the year, as reflected
34 from 12.1% in June 2023, to 4.5% in November
by month-on-month inflation which declined
2023.
 Inflation Developments

72. Domestic prices have relatively been stable since the third
quarter of the year, as reflected by month-on-month inflation
which declined from 12.1% in June 2023, to 4.5% in November
2023.

73. Concomitantly, the annual headline inflation declined from

30.9% in June 2023 to 21.6% in November 2023.

74. In the outlook, annual inflation is expected to remain on the

decline and is projected to end the year 2023 slightly below
20%.

75. In 2024, annual inflation is anticipated to end the year slightly

above 10%, reflecting continued tight monetary and fiscal
policies.

35
 Figure
Figure 5: Annual 5: Annual
Inflation Inflation Developments
Developments and Outlookand Outlook
60

50

40
Percentage,%

30

20

10

Actual Inflation Policy Baseline

Source:ZIMSTAT
Source: ZIMSTAT & RBZ
& RBZ

Exchange Rate Developments

Exchange Rate Developments
76. The introduction of the wholesale foreign exchange auction on the back of the recent
76. The introduction of the wholesale foreign exchange auction
liberalization of the exchange rate, saw the parallel market premium declining from a peak of
on the back of the recent liberalization of the exchange rate,
over 140% in May 2023 to around 35% in November 2023.
saw the parallel market premium declining from a peak of over
77. The ZW$/US$
140% exchange
in May 2023ratetodepreciated
around from ZW$5
35% 466.75 on 29 September
in November 2023. 2023, to
ZW$5 776.23 on 24 November 2023.

77. The Z$/US$ exchange rate depreciated from Z$5 466.75 on

29 September 2023, to Z$5 776.23 on 24 November 2023.

36
20
 Figure 6: Exchange Rate Developments
Figure 6: Exchange Rate Developments
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WZD/hD;йͿ /EdZE<Zd hd/KEZd WZ>>>Zd^;dƌĂŶƐĨĞƌͿ

Source RBZ
Source RBZ

78. Government, through the Central Bank, will continue to refine the foreign exchange market
78. Government, through
moving towards market determined the Central
exchange Bank, will continue to
rate regime.

refine the foreign exchange market moving towards market

Public Finance Developments
determined exchange rate regime.

79. The 2023 National Budget was premised on total annual revenue collections of ZWL$3.9
Public Finance Developments
trillion (18% of GDP), expenditures of Z$4.2 trillion (19.5% of GDP) and a targeted budget
deficit of Z$336.9 billion (1.5% of GDP).
79. The 2023 National Budget was premised on total annual
80. revenue collections
During the first ofthe
nine months of Z$3.9 trillion rate
year, exchange (18% and of GDP),
inflation expenditures
movements resulted in
of
bothZ$4.2
revenuetrillion (19.5%
and expenditures of GDP)
performing andthe
way above a targets
targeted budget
in nominal terms. deficit

of Z$336.9 billion (1.5% of GDP).

81. Notwithstanding, expenditures by MDAs were still within the available revenue inflows and
compliant with the fiscal rule of a budget deficit of not more than 3% of GDP. Government is,
80. During the first nine months of the year, exchange rate and
therefore, exercising fiscal discipline even under volatile macro-economic conditions.
inflation movements resulted in both revenue and expenditures
82. performing way
Revenue collections for above
the periodthe targets
January in nominal
to September terms.
2023 amounted to Z$11.4 trillion,
against expenditures of Z$12.3 trillion, resulting in a budget deficit of Z$0.9 trillion.

37
21
81. Notwithstanding, expenditures by MDAs were still within the
available revenue inflows and compliant with the fiscal rule
of a budget deficit of not more than 3% of GDP. Government
is, therefore, exercising fiscal discipline even under volatile
macro-economic conditions.

82. Revenue collections for the period January to September 2023

amounted to Z$11.4 trillion, against expenditures of Z$12.3
trillion, resulting in a budget deficit of Z$0.9 trillion.

Table 16: Public Finance Performance (Z$B)

Jan to Sept 2023
Total Revenues 11,418.1
Tax Revenues 11,185.5
Non-Tax Revenues 232.6
Total Expenditures & Net Lending 12,317.9
Recurrent Expenditure 9,373.4
Transfers to Provincial Councils and Local Authorities 140.7
Capital 2,944.5
Deficit -899.8
Source: MoFEDIP

Revenue Developments

83. Cumulative revenue collections for the period January to

September 2023 amounted to Z$11.4 trillion, comprising of tax
revenue of Z$11.2 trillion (97.5% of total revenue), and non-
tax revenue of Z$232.6 billion.

38
 Table 17: Revenue Performance
Revenue Head Jan to Sept 2023 (Z$)
Total Revenue 11.4
Tax Revenue 11.2
Non-tax 0.2
Source: MoFEDIP

84. The increase in revenue collection was due to higher-than-

expected receipts from all tax heads. Value Added Tax (VAT)
accounted for 29.3% of total revenue, Personal Income Tax
(PIT) (19.4%), Excise Duty (12.4%), Corporate Income Tax
(CIT) (11.5%), Customs Duty (8.2%), and Intermediate Money
Transfer Tax (IMTT) (5.4%).

Figure 7: Contribution to Total

Figure Revenue (%)
7: Contribution to Total Revenue (%)
Taxes on Financial and Other Indirect Taxes Non-tax Revenue
Capital Transactions 0.2% 2.0%
5.4%
Tax on Gross Revenue Personal Income Tax
5.7% 19.4%

Corporate Tax
11.5%

Value Added Tax

29.3%
Other Taxes on
Income and Profits
1.0%

Customs Duties
8.2%
Taxes on Specific
Services Excise Duties
4.9% 12.4%
Source: MoFEDIP
Source: MoFEDIP (2023)
(2023)

85. To year end, revenue collections are projected at Z$21.2 trillion.

Expenditure Developments

39
86. During the period January to September 2023, cumulative expenditure amounted to Z$12.3
trillion.
85. To year end, revenue collections are projected at Z$21.2
trillion.

Expenditure Developments

86. During the period January to September 2023, cumulative

expenditure amounted to Z$12.3 trillion.

Table 18: Expenditure Outturn (Z$B)

Jan to Sept 2023
Total Expenditures & Net Lending 12,317.9
Recurrent Expenditure 9,373.4
Compensation of Employees 4,420.3
Use of Goods and Services 4,453.6
Social Benefits 171.0
Subsidies 88.1
Interest 51.8
Other expenses 47.9
Transfers to Provincial Councils and Local Authorities 140.7
Capital Expenditure 2,944.5
Source: MoFEDIP

87. Recurrent expenses amounted to Z$9.4 trillion, driven by

compensation of employees at Z$4.4 trillion and use of goods
and services amounting to Z$4.5 trillion.

88. Cumulative expenditure on social protection programmes for

the period January to September 2023 amounted to Z$457
billion towards the following;

• Presidential Input Support Scheme Z$320 billion

40
 • Basic Education Assistance Module (BEAM) Z$87 billion
• Food Deficit Mitigation Z$12 billion
• Harmonised Cash Transfer Z$5 billion

89. Capital expenditure during the period January to September

2023 amounted to Z$2.9 trillion, whilst transfers to Provincial
Councils and Local Authorities amounted to Z$140.7 billion.

90. Expenditures to year end is projected at Z$22.6 trillion,

comprising of compensation of employees of Z$10.9 trillion,
operations and maintenance amounting to Z$7.5 trillion and
capital expenditure of Z$4 trillion.

Deficit

91. During the first nine months, the fiscal deficit stood at Z$0.9
trillion, and is projected to end the year at Z$1.4 trillion (1.2%
of GDP).

92. Government issued Treasury bills amounting to Z$305.9

billion to partly finance the budget deficit and to mop up excess
liquidity in the market, as well as for cashflow smoothening.

41
 Table 19: Government Borrowing (Z$M)
Tenor Jan-Mar April-June Jul-Sep Total (Jan- Sep)
Target Actual Target Actual Revised Actual Target Actual
Target
90-day - 60,550 - 61,705 52,000 108,900 52,000 231,155
180-day - 16,100 3,200 16,100 65,000 5,433 68,200 37,633
270-day 2,200 15,000 4,900 4,300 65,000 - 69,900 19,300
365-day 6,100 16,100 8,200 1,750 78,000 - 86,200 17,850
Total Treasury 8,300 107,750 16,300 83,855 260,000 114,333 276,300 305,938
Bills
Source: MOFEDIP

93. The issuances were done through private placement, with 90-
day and 180-day having an average coupon rate of 81% and
82%, while 270-day and 365-day had average coupon rates of
83% and 88%, respectively.

94. Most of the resources were raised from the banking sector
(99%), while the non-banking sector provided the remaining
1%. This is notwithstanding the requirement that pension
funds should comply with the prescribed asset status of 20%
of their investable resources, against the current levels of 7%.

95. In addition, the budget deficit was also partly financed through a
trade finance structure of US$400 million from AFREXIMBANK
and US$9 million disbursement from active loans.

96. To year end, if necessary, Government will raise additional

resources from domestic and external borrowing to finance
the deficit.

42
 Public Debt

97. The total Public and Publicly Guaranteed (PPG) debt stock
as at end September 2023, amounted to Z$96.71 trillion,
(81.3% to the GDP). The debt is comprised of an external debt
amounting to Z$69.36 trillion and domestic debt of Z$27.4
trillion.

Table 20: Total Debt Stock (Z$B)

DOD PRA IRA Penalties PRA+IRA+ Total
Penalties
Total PPG Debt (a+b) 58,433 16,163 9,120 12,998 38,281 96,714
a.PPG External Debt (1+2+3) 31,256 15,990 9,120 12,998 38,108 69,364
Bilateral and Multilateral Exter- 11,815 15,990 9,120 12,998 38,108 49,923
nal Debt (1+2)
1.Bilateral Creditors 8,556 9,573 3,016 11,706 24,295 32,851
Paris Club 447 7,310 2,512 11,113 20,935 21,382
Non-Paris Club 8,109 2,263 504 593 3,360 11,469
2.Multilateral Creditors 3,259 6,417 6,104 1,292 13,813 17,072
World Bank 624 3,936 3,876 - 7,812 8,435
African Development Bank 140 1,514 2,070 - 3,584 3,724
European Investment Bank 53 780 126 1,292 2,198 2,251
Afreximbank 2,187 - - - - 2,187
Others 256 187 33 - 219 475
3. Liabilities on the RBZ Bal- 19,441 - - - - 19,441
ance Sheet
To be assumed by Treasury 9,933 - 9,933
2023
Other Liabilities on the RBZ 9,508 - 9,508
Balance Sheet
b. Domestic Debt 27,177 172 - - 172 27,349
Government Securities 8,043 - - - - 8,043
Of which Blocked Funds 7,984 - - - - 7,984
Domestic Arrears (to Service - 172 - - 0.17 0.17
Providers)
Compensation of Former Farm 19,134 - - - - 19,134
Owners
DOD: Disbursed Outstanding Debt PRA: Principal Arrears INA: Interest Arrears
Source: MOFEDIP

43
98. In US$ terms, total PPG debt amounted to US$17.7 billion, as
at end September 2023, of which external debt amounted to
US$12.7 billion and domestic debt of US$5 billion.

Table 21: Total Debt Stock (US$M)

DOD PRA IRA Penalties PRA+IRA+ Total
Penalties
Total PPG Debt (a+b) 10,689 2,957 1,668 2,378 7,002 17,691

a.PPG External Debt (1+2+3) 5,717 2,925 1,668 2,378 6,971 12,688

Bilateral and Multilateral 2,161 2,925 1,668 2,378 6,971 9,132

External Debt (1+2)
1.Bilateral Creditors 1,565 1,751 552 2,141 4,444 6,009

Paris Club 82 1,337 459 2,033 3,830 3,911

Non-Paris Club 1,483 414 92 108 615 2,098

2.Multilateral Creditors 596 1,174 1,117 236 2,527 3,123

World Bank 114 720 709 - 1,429 1,543

African Development Bank 26 277 379 - 656 681

European Investment Bank 10 143 23 236 402 412

Afreximbank 400 - - - - 400

Others 47 34 6 - 40 87

3. Liabilities on the RBZ 3,556 - - - - 3,556

Balance Sheet
To be assumed by Treasury 1,817
2023**
Other Liabilities on the RBZ 1,739
Balance Sheet
b. Domestic Debt 4,971 32 - - 32 5,003

Government Securities 1,471 - - - - 1,471

Of which Blocked Funds 1,461 1,461

Domestic Arrears (to Service - 32 - - 32 32
Providers)
Compensation of Former 3,500 - - - - 3,500
Farm Owners
**The assumption is in line with the policy announcement of May 2023, on measures to stabilise the economy
Source: MOFEDIP

44
 Domestic Debt Stock

99. The stock of total domestic debt, as at end September 2023

amounted to Z$27.4 trillion, comprising of Government
securities of Z$8 trillion, domestic arears to service providers
of Z$172 billion and compensation of former farm owners of
Z$19.1 trillion.

Table 22: Total Domestic Debt (Z$B)

Category 2023
Government securities 8,043
Domestic arrears to service providers 172
Compensation of Former Farm Owners** 19,134
Total 27,349
**Interim relief payments to FFOs will be netted off to final compensation
Source: MOFEDIP

External Debt Stock

100. Total external debt stock as at end September 2023 amounted

to US$12.7 billion, including liabilities on the RBZ balance
sheet assumed by Treasury. Of the total external debt stock,
the bilateral and multilateral debt amounted to US$9.1 billion,
of which 76% are principal arrears, interest arrears and
penalties.

45
 Table 23: Public External Debt (US$M)
DOD PRA IRA Penalties PRA+IRA+ Total
Penalties
.PPG External Debt (1+2+3) 5,717 2,925 1,668 2,378 6,971 12,688
Bilateral and Multilateral External Debt 2,161 2,925 1,668 2,378 6,971 9,132
(1+2)
1.Bilateral Creditors 1,565 1,751 552 2,141 4,444 6,009
Paris Club 82 1,337 459 2,033 3,830 3,911
Non-Paris Club 1,483 414 92 108 615 2,098
2.Multilateral Creditors 596 1,174 1,117 236 2,527 3,123
World Bank 114 720 709 - 1,429 1,543
African Development Bank 26 277 379 - 656 681
European Investment Bank 10 143 23 236 402 412
Afreximbank 400 - - - - 400
Others 47 34 6 - 40 87
3. Liabilities on the RBZ Balance Sheet 3,556 - - - - 3,556
To be assumed by Treasury 2023** 1,817
Other Liabilities on the RBZ Balance 1,739
Sheet
**The assumption is in line with the policy announcement of May 2023, on measures to stabilise the economy
Source: MOFEDIP

101. Government made external debt service payments amounting

to USD$55.6 million over the period January to end September
2023, for the active portfolio, legacy debts and token payments.

102. In addition, as a sign of its commitment to the international

engagement and re-engagement thrust, Government made
token payments to all International Financial Institutions and
Paris Club creditors amounting to USD$10.7 million over the
same period.

46
 Table 24: External Debt Service (US$M)
Jan-Mar Apr-Jun Jul-Sep Total
Active Portfolio
China Eximbank 2.0 4.0 2.0 8.00
India Eximbank - 2.3 - 2.27
Kuwait - 0.3 0.2 0.47
Sinosure 2.0 4.0 - 6.00
Afreximbank - - 7.0 7.00
BADEA - 0.6 - 0.64
OFID - 1.8 - 1.79
IFAD - 0.2 - 0.19
4.00 13.14 9.21 26.36
Legacy Debts 8.83 8.83 0.89 18.55
Token Payments
World Bank Group 2.00 1.00 1.00 4.00
African Development Bank Group 1.00 0.50 0.50 2.00
European Investment Bank 0.20 0.10 0.10 0.40
Paris Club 2.96 0.10 1.26 4.33
6.16 1.70 2.86 10.73
Grand Total 18.99 23.67 12.97 55.63
Source: MOFEDIP

Financial Sector Developments

103. The financial sector has remained sound and stable, with
strong capital and liquidity positions, as well as strong risk
management practices on the back of proactive, holistic and
supportive stabilisation measures by the authorities.

104. To sustain the financial stability and inclusive growth,

Government in collaboration with relevant stakeholders
has commenced the formulation of the Financial Sector
Development Strategy. It is envisaged that the Strategy will be
launched during 2024.

47
 Banking Sector

105. The banking sector is comprised of 14 commercial banks, 4

building societies and 1 savings bank. In addition, there are
219 credit-only microfinance institutions, 8 deposit-taking
microfinance institutions (DTMFI) and 4 development financial
institutions.

106. Confidence in the banking sector continues to improve as

evidenced by growth in foreign currency deposits from around
US$300-400 million in 2018, to US$1.6 billion, as of the end of
September 2023.

Figure 8: Banking Sector

Figure ForeignSector
8: Banking Currency Deposits
Foreign Currency Deposits
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Source: RBZ
Source: RBZ

Banking Sector Capitalization

107. As at 30 September 2023, all banking institutions were in compliance with prudential capital
ratios, that is, the prescribed minimum capital adequacy ratio of 12% and the tier 1 ratio of
8% at 43.2% and 27.3%, respectively.

48
108. Banking sector core capital increased from ZW$803.08 billion as at 31 March 2023, to
ZW$5.09 trillion as at 30 September 2023, largely attributed to the capitalisation of retained
 Banking Sector Capitalisation

107. As at 30 September 2023, all banking institutions were in

compliance with prudential capital ratios, that is, the prescribed
minimum capital adequacy ratio of 12% and the tier 1 ratio of
8% at 43.2% and 27.3%, respectively.

108. Banking sector core capital increased from Z$803.08 billion as

at 31 March 2023, to Z$5.09 trillion as at 30 September 2023,
largely attributed to the capitalisation of retained earnings
emanating from the revaluation of investment properties and
foreign currency-denominated assets.

109. In light of the need to hedge institutions’ capital against

potential exchange rate shocks, banking institutions are
adopting a number of capital preservation strategies which
include investing in gold coins and Gold-Backed Digital Tokens
(ZiG), investment properties, as well as keeping a portion of
the capital in US$.

110. A total of 15 out of 18 banking institutions (excluding POSB

with no prescribed minimum capital requirement), reported
core capital levels that complied with minimum regulatory
requirements. Non-compliant banking institutions are
implementing various initiatives to bolster their capital and

49
 ensure compliance with the minimum capital requirements by
31 December 2023.

Banking Sector Loans and Advances

111. Aggregate banking sector loans and advances increased from

Z$1.97 trillion as of 31 March 2023, to Z$9.70 trillion as at
30 September 2023. The growth in banking sector loans was
largely due to growth in foreign currency-denominated loans,
whose proportion increased from 78% as at 31 March 2023, to
88% as at 30 September 2023.

112. The banking sector continued to support the funding

requirements of the productive sectors of the economy as
evidenced by loans to the productive sectors, which constituted
74% of total loans as at 30 September 2023, as shown in the
Figure below.

50
 112. The banking sector continued to support the funding requirements of the productive sectors
of the economy as evidenced by loans to the productive sectors, which constituted 74% of
total loans as at 30 September 2023, as shown in the Figure below.

Figure 9: Sectoral Distribution of LoansDistribution of Loans

Figure 9: Sectoral

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KƚŚĞƌ͕
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DŝŶŝŶŐ͕
WƌŽĚƵĐƚŝǀĞ͕ ŐƌŝĐƵůƚƵƌĂů͕ ϭϭ͘ϰϳй
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ϭϳ͘Ϭϵй

ƐƚƌŝďƵƚŝŽŶ͕
DŽƌƚŐĂŐĞ͕ϱ͘ϮϬй ϵ͘ϯϬй
&ŝŶĂŶĐŝĂů͕ϱ͘ϱϯй ŽŶƐƚƌƵĐƚŝŽŶ͕
ŽŵŵƵŶŝĐĂƚŝŽŶ͕ ϭ͘Ϯϳй
ϭ͘ϭϰй dƌĂŶƐƉŽƌƚ͕ϭ͘Ϯϵй
Source: RBZ
Source: RBZ

113. In the outlook period, the banking sector is expected to continue to play an even greater role
113. In the outlook
in supporting sustainableperiod, the
and inclusive banking sector is expected to
economy.
continue to play an even greater role in supporting sustainable
and inclusive economy.
Asset Quality

Asset Quality
30
114. The banking sector asset quality remained low, as reflected by
an aggregate non-performing loans ratio (NPL) of 2.34% as at
30 September 2023. The ratio remains within the Bank’s risk
appetite limit and the acceptable international threshold of 5%,
as shown in the Figure below.

51
 loans ratio (NPL) ratio of 2.34% as at 30 September 2023. The ratio remains within the Bank’s
risk appetite limit and the acceptable international threshold of 5%, as shown in the Figure
below.

Figure 10: Non-Performing

FigureLoans Ratio
10: Non-Performing Loans Ratio

5 5 5 5 5 5 5 5 5 5 5 5

3.63
3.30

2.34

1.57 1.69 1.58

1.50

0.94
0.55 0.61
0.31 0.36

Benchmark (%) NPL Ratio (%)

Source: RBZ
Source: RBZ

115. The low NPL ratio is reflects robust credit risk management systems and strong internal
115. The low NPL ratio reflects robust credit risk management
controls by banking institutions.
systems and strong internal controls by banking institutions.
Banking Sector Deposits and Liquidity
Banking Sector Deposits and Liquidity
116. Banking institutions have sufficient liquidity to intermediate utilising the foreign currency and
116. Banking institutions have sufficient liquidity to intermediate
ZW$ deposits, as well as external lines of credit.
utilising the foreign currency and Z$ deposits, as well as
external lines of credit.
117. Aggregate banking sector deposits continued on an upward trajectory from ZW$3.17 trillion
as at 31 March 2023, to ZW$16.08 trillion as at 30 September 2023, dominated by foreign
117. Aggregate banking sector deposits continued on an upward
currency-denominated deposits which accounted for 80.49% of total deposits.
trajectory from Z$3.17 trillion as at 31 March 2023, to Z$16.08
trillion as at 30 September 2023, dominated by foreign
31
currency-denominated deposits which accounted for 80.49%
of total deposits.

52
118. Further, banking institutions continued to maintain robust
liquidity positions, providing a key source of strength in the
face of a dynamic macroeconomic environment. As at 30
September 2023, the sector’s average prudential liquidity
ratio was 61.74%, reflecting a high stock of liquid assets in the
sector.

Monetary Developments

119. Growth in both the reserve money (M0) and broad money
(M3) has significantly slowed down, having peaked in June
2023. The reserve money and broad money annual growth
rates declined from 3 074.25% and 1 174.94% in June 2023,
to 1 406.81% and 719.66%, in September 2023, respectively.

120. The phenomenal growth in foreign exchange deposits in the

banking sector and revaluation effects on foreign exchange
balances, in line with exchange rate movements remain the
economy’s two biggest drivers of money supply growth. As
at September 2023, foreign currency deposits accounted for
83% of total money supply, compared to 62% in December
2023.

53
 economy’s two biggest drivers of money supply growth. As at September 2023, foreign
currency deposits accounted for 83% of total money supply, compared to 62% in December
2023.

Figure 11: Broad Money

Figure Developments
11: Broad and Composition
Money Developments and Composition
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й
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Source: RBZ
Source: RBZ

121. The decline in monetary aggregates was largely due to the

32
combined effect of tight monetary policy and prudent fiscal policy
measures. The exchange rate remained relatively stable over
the period from June 2023 to September 2023. Resultantly,
the pass-through effects of exchange rate depreciation, which
fuelled both money supply growth and hence, inflation in the
period to June 2023, subsided.

122. The term structure of interest rates in the economy has

generally followed developments in the Bank Policy rate,
which was maintained at 150% since June 2023 and reviewed
downwards to 130% in October 2023.

54
123. The Monetary Policy Committee is expected to continue to
review interest rates in line with inflation developments.

Anti-Money Laundering/Combating the Financing of Terrorism

Monitoring

124. The banking institutions have robust systems in place to

prevent and detect illicit fund flows and other financial crimes.
Recognising the significance of strong frameworks for Anti-
Money Laundering (AML) and Combating the Financing
of Terrorism (CFT) to the preservation of financial stability,
Government will continue to enforce compliance with AML/
CFT standards within the financial sector on an ongoing basis.

125. Additional measures will be put in place to ensure effectiveness

of implementing AML/CFT/PF laws and regulations, in line
with the regional and international set standards.

Securities Market

Zimbabwe Stock Exchange

126. The number of listed companies on the Zimbabwe Stock

Exchange (ZSE) stood at 48, as at October 2023, as well as 5
Exchange Traded Funds (ETFs) and 1 Real Estate Investment
Trust. The ZSE All Share Index gained 688% up to 30 October
2023.

55
 Table 25: All Share
Index 30 October, 2023 31 December, 2022
All share Table 25:153,756.06
All Share 19,493.85
Index
Top 10
30 October, 2023
68,275.17
31 December,
12,311.13
2022
All share 153,756.06 19,493.85
Source:
Top 10ZSE 68,275.17 12,311.13
Source: ZSE

Figure 12: ZSE indices Figure 12: ZSE indices

180,000
160,000
140,000
120,000
Basis Points

100,000
80,000
60,000
40,000
20,000
-
Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23

Allshare Top 10

Source: ZSE
Source: ZSE

127. The ZSE market capitalisation peaked at Z$13 trillion in June 2023, as shown in the Figure
below.ZSE market capitalisation peaked at Z$13 trillion in June
127. The
2023, as shown in the Figure below.
Figure 13: ZSE Market Capitalisation

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Source: ZSE
56
 Source: ZSE

127. The ZSE market capitalisation peaked at Z$13 trillion in June 2023, as shown in the Figure
below.

Figure 13: ZSE Market Figure

Capitalisation
13: ZSE Market Capitalisation

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Source:ZSE
Source: ZSE

128. Market turnover for the period from 1 January, 2023 to 30

October, 2023 was Z$357 billion, 34 compared to Z$94 billion
128. Market turnover for the period from 1 January, 2023 to 30 October, 2023 was Z$357 billion,
during the same period in 2022.
compared to Z$94 billion during the same period in 2022.

Figure 14: ZSE Turnover Figure 14: ZSE Turnover

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ŝůůŝŽŶΨ

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:ĂŶͲϮϯ &ĞďͲϮϯ DĂƌͲϮϯ ƉƌͲϮϯ DĂLJͲϮϯ :ƵŶͲϮϯ :ƵůͲϮϯ ƵŐͲϮϯ ^ĞƉͲϮϯ KĐƚͲϮϯ

Source:ZSE
Source: ZSE

129. The highest level of foreign investor participation in 2023 was recorded in April at 28.6%,
whist the average participation for the period stood at 13.31%.
57
Figure 15: ZSE Foreign Participation
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129. The highest level of foreign investor participation in 2023 was

:ĂŶͲϮϯ &ĞďͲϮϯ DĂƌͲϮϯ ƉƌͲϮϯ DĂLJͲϮϯ :ƵŶͲϮϯ :ƵůͲϮϯ ƵŐͲϮϯ ^ĞƉͲϮϯ KĐƚͲϮϯ

Source: ZSE
recorded in April at 28.6%, whilst the average participation for
129. the
The highest
period levelstood
of foreign
atinvestor
13.31%. participation in 2023 was recorded in April at 28.6%,
whist the average participation for the period stood at 13.31%.

Figure 15: ZSE Foreign Participation

Figure 15: ZSE Foreign Participation
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Source:ZSE
Source: ZSE

Victoria Falls Stock Exchange

35
130. The number of listed companies on the Victoria Falls Stock
Exchange increased from 4 in 2022, to 14 in 2023.

131. The VFEX All Share Index has maintained a downward trend
easing 24.8% since the beginning of the year, as subdued
liquidity conditions continued.

58
 131.The
130. Thenumber
VFEXofAlllisted
Share Index has
companies on maintained
the Victoria aFalls
downward trend easing
Stock Exchange 24.8%from
increased since
4 inthe
beginning
2022, to 14 inof2023.
the year, as subdued liquidity conditions continued.

Figure
131. The VFEX16:AllVFEX
ShareAllIndex
Share Figure
Index
has 16: VFEX
maintained All Share Index
a downward trend easing 24.8% since the
ϭϲϬ͘ϬϬ
beginning of the year, as subdued liquidity conditions continued.
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ϭϬϬ͘ϬϬ Figure 16: VFEX All Share Index
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Source: VFEX
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Source:
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132. VFEX year to date turnover at US$15.3 million was at 69% as at September 2023, ahead of
132. VFEX year to date turnover at US$15.3 million was at 69%
the same period in 2022, attributed to an increase in the total number of listings and trades.
as at September 2023, ahead of the same period in 2022,
Source: VFEX

attributed
132. VFEX toturnover
year to date an increase
at US$15.3 in17:the
Figuremillion wastotal
VFEX 69%number
atTurnover of listings
as at September and
2023, ahead of
trades.
the same period in 2022, attributed to an increase in the total number of listings and trades.
ϯ͕ϬϬϬ͕ϬϬϬ͘ϬϬ
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FigureϮ͕ϬϬϬ͕ϬϬϬ͘ϬϬ
17: VFEX Turnover Figure 17: VFEX Turnover
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Ͳ

Source:VFEX
Source: VFEX
36

133. VFEX market capitalisation as at the end of September, 2023

stood at US$1.2 billion, 125%
36 up, compared to the same
period in 2022.

59
 133. VFEX market capitalisation as at the end of September, 2023 stood at USD1.2 billion, 125%
up, compared to the same period in 2022.

Figure 18: VFEX MarketFigure 18: VFEX Market Capitalisation

Capitalisation

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Source:VFEX
Source:

International Financial Services Centre

International Financial Services Centre

134. In 2021, through the 2022 Finance Act, Government designated the Victoria Falls Special
134. In 2021, through the 2022 Finance Act, Government designated
Economic Zone, as an International Financial Service Centre (IFSC) with the aim of attracting
the Victoria
investments Falls
locally Special
and across Economic Zone, as an International
the Globe.
Financial Service Centre (IFSC) with the aim of attracting
135. It is envisaged that the Centre will create business opportunities in securities, insurance and
investments locally and across the Globe.
banking sectors, with VFEX already operational.

135. It is envisaged that the Centre will create business opportunities

136. To fully operationalise the IFSC, the 2024 National Budget has made a provision of Z$20
in securities,
billion for finalisation insurance and
of the governance banking
framework sectors,
and regulatory with asVFEX
environment, well as
already
operational operational.
costs.

136. To fullyandoperationalise
Pension Insurance the IFSC, the 2024 National Budget
has made a provision of Z$20 billion for finalisation of the
137. The pensions industry had 968 registered pension funds as at 30 September 2023, down from
governance framework and regulatory environment, as well
981 for the period ending 31 December 2022. The decline in the number of funds is attributed to
as operational
the transfer costs.
of some self-administered funds into umbrella funds and dissolutions.

37

60
 Pension and Insurance

137. The pensions industry had 968 registered pension funds as

at 30 September 2023, down from 981 for the period ending
31 December 2022. The decline in the number of funds is
attributed to the transfer of some self-administered funds into
umbrella funds and dissolutions.

138. The value of the pension industry assets stood at Z$10.67 trillion
as at 30 September, from Z$1.11 trillion as at 31 December,
2022. The increase in the asset base was mainly driven by
property investment and quoted equities which constituted
76% of the industry’s total assets.

Pre-2009 Pension Compensation

139. Government undertook to compensate pensioners whose

contributions lost value due to currency reforms in 2009 guided
by the Justice Smith Commission of Inquiry Report. A US$175
million envelope was approved by Cabinet in 2023 in support
of the compensation process over a period of four years.
Through the 2024 Budget, an allocation of Z$269.6 billion has
been set aside for compensation of civil service pensioners,
commencing in March 2024.

61
140. The regulator, IPEC, has also set aside resources as contribution
towards the compensation process, with the insurance industry,
having completed work on the compensation schemes to
determine payouts to the private sector beneficiaries in 2024.

141. In the same vein, the National Social Security Authority (NSSA)
will also compensate pensioners under its purview.

142. It is envisaged that compensation will instil confidence in the

insurance industry, a critical source of savings. This will also
give the much-needed relief to pensioners, who have been
eagerly waiting for this compensation.

Prescribed Asset Status Policy

143. The primary objective of the Prescribed Assets Status (PAS) is

to mobilise long-term savings towards national development.
In this regard, Government set minimum investment limits for
each category of the insurance and pension assets.

144. Government, however, has noted that compliance levels of

the pension industry has remained low, owing to industry’s
preference to invest in equity instruments and for on-lending
purposes. These are risky investments that may result in loss
of value to pensioners and members’ contributions.

62
 Table 26: Prescribed Asset Status Compliance Levels
Class of Business Minimum Required Compliance Level
(%)
Compliance Level (%) 30.09.2023
Life Assurers 15 9.33
Short-term Insurers 10 7.52
Funeral 10 0.18
Life Reassurers 15 3.25
Short-term Re-Insurers 10 10.30
Pension Funds 20 7.65

145. Henceforth, Prescribed Asset Status will be conferred to

infrastructure projects that are aligned to NDS1 agenda, such
as, university accommodation, roads, renewable energy,
agriculture and health infrastructure development. This also
extends to capitalisation empowerment initiatives by financial
institutions such as Empower Bank, Zimbabwe Women’s
Microfinance Bank and SMEDCO.

146. In this regard, Government will come-up with revised prescribed

assets criteria to guide the industry during 2024.

THE 2024 MACROECONOMIC FISCAL FRAMEWORK

147. In line with the projected economic growth of 3.5%, total

revenue collections in 2024 are estimated at Z$53.9 trillion,
(18.3% of GDP), broken down as Z$51.2 trillion tax revenue
and Z$2.7 trillion non tax revenue. Revenue collections are
expected to steadily increase to 18.4% of GDP over the next
two years.

63
 Table 27: Macro-Fiscal Framework
2023 2024 2025 2026
National Accounts
Nominal GDP at market prices 119,017,540.7 294,230,947.2 379,843,423.9 432,833,503.7
(Z$M)
Real GDP Growth (%) 5.5 3.5 5.0 5.0
Government Accounts
Revenues (Including Retained 21,186,130.9 53,935,298.4 69,789,054.5 79,610,271.5
Revenue)
% of GDP 17.8 18.3 18.4 18.4
Expenditures & Net Lending 22,626,872.9 58,222,819.3 74,497,627.4 84,859,674.5
(Z$M)
% of GDP 19.0 19.8 19.6 19.6
Expenses 18,905,137.4 48,079,742.3 60,064,884.4 66,519,597.1
% of GDP 15.9 16.3 15.8 15.4
Compensation of Employees 10,862,577.8 25,779,538.3 30,252,072.8 33,090,624.8
% of GDP 9.1 8.8 8.0 7.6
% Total Expenditure 48.0 44.3 40.6 39.0
% of Revenue 51.3 47.8 43.3 41.6
Interest Payments 257,393.7 948,288.7 2,002,482.7 3,139,888.2
% of GDP 0.2 0.3 0.5 0.7
% of Revenue 1.2 1.8 2.9 3.9
Capital Expenditure 3,960,701.7 12,350,295.0 17,922,195.7 22,320,591.0
% of GDP 3.3 4.2 4.7 5.2
Overall Balance -1,440,742.0 -4,287,520.8 -4,708,572.9 -5,249,403.0
% of GDP -1.2 -1.5 -1.2 -1.2
Source: Ministry of Finance, Economic Development and Investment Promotion

148. The improvements in tax administration and deliberate

tax policy fine tuning to reduce leakages and enhance tax
compliance are expected to increase tax collections going
forward. Specifically, the new Tax and Revenue Management
System (TARMS), which replaces the current SAP TRM
system, addresses the challenges in compliance and tax
administration through automation.

64
149. In addition, revenue raising measures will be implemented by
targeting emerging industries, especially the informal sector.

150. Guided by the expected revenue envelope and the desired

fiscal path, expenditures in 2024 are projected at Z$58.2 trillion
(19.8% of GDP) and are expected to gradually decrease to
19.6% of GDP in 2025 and 2026. The proposed expenditures
takes into account the following:

• The need to maintain the purchasing power of civil service

salaries;
• Ensuring provision of core social services that benefit the
poor;
• Sustaining maintenance and rehabilitation of Government
infrastructure;
• Prioritised support to on-going public infrastructure projects;
• Non accumulation of arrears; and
• Increase funding of infrastructure projects through PPPs.

Financing

151. The total budget financing gap in 2024 amounts to Z$9.2

trillion, comprising of budget deficit of Z$4.3 trillion (1.5% of
GDP) and amortisation of loans and maturing Government
securities estimated at Z$4.9 trillion.

65
152. This will be funded through domestic and external borrowing
as follows:

• Issuance of Treasury Bills amounting to Z$5.8 trillion from

the market, using both private placements and the auction
system;
• Disbursements from existing external loans amounting to
US$40.8 million; and
• New external loans under negotiations amounting to
US$330 million.

153. In this regard, the 2024 Annual Borrowing Plan will be as

follows.

Table 28: 2024 Annual Borrowing Plan (Z$M)

Jan-March April-Jun Jul-Sep Oct-Dec Total
90- day 268,900 179,300 448,200
180- day 313,700 470,600 470,500 313,800 1,568,600
270- days 358,500 537,800 537,800 358,600 1,792,700
365- days 134,400 201,700 201,600 134,511 672,211
Sub Total 806,600 1,210,100 1,478,800 986,211 4,481,711
Treasury Bonds US$ 269,582 404,373 404,373 269,582 1,347,910
denominated
Total Treasury bills (in Z$) 1,076,182 1,614,473 1,883,173 1,255,793 5,829,621
Existing loan disbursements 366,587 366,587
New external loans 943,537 2,021,865 2,965,402
disbursements
Total 1,076,182 2,558,010 4,271,624 1,255,793 9,161,610
Source: MOFEDIP

66
154. The pipeline external loan financing for 2024 is estimated
at US$330 million, from the on-going loan negotiations as
indicated in table below.

Table 29: 2024 External Loans in Pipeline

Loan Facility Lender Amount Purpose
US$
Millions
BCG Facility Broughton Capital Group (BCG) 100 Trade related
Infrastructure
development
Dinosaur Facility Dinosaur Merchant Bank 125 Infrastructure
development
Zimbabwe Healthcare ABSA, Standard Bank Limited 105 Construction of health-
Facilities Programme Zimbabwe and Standard Bank care centres and
Limited South Africa district hospitals
Total 300
Source: MOFEDIP

155. Government is also negotiating for new financing and lines of

credit for the local banks and institutions with BADEA, IFAD,
and OFID. In addition, Government is exploring innovative
ways of mobilising resources for infrastructure development
through the ringfencing arrangement of US$ cash flow streams.

Vote Allocations

156. During the formulation process of the 2024 National Budget,

MDAs submitted funding requirements (bids) of over Z$110
trillion, against the available envelope of Z$58.2 trillion. The
envelop is limited by the sustainable revenue to GDP ratio of
about 18%.

67
157. However, in order to support macro-economic stability, sustain
economic growth and improve on the public finances position,
the budget deficit has been maintained at 1.5% of GDP.

158. In this regard, the budget allocations to respective Votes are

as indicated in the table below.

Table 30: Vote Allocations

Vote Z$
Office of the President and Cabinet 2,157,038.63
Parliament of Zimbabwe 475,112.47
Public Service, Labour and Social Welfare 2,371,042.50
Defence 3,637,636.66
Finance, Economic Development and Investment Promotion 1,704,707.52
Audit Office 116,964.99
Industry and Commerce 130,473.99
Lands, Agriculture, Fisheries, Water and Rural Resettlement 4,285,933.44
Mines & Mining Development 132,708.34
Environment, Climate and Wildlife 135,476.83
Transport and Infrastructural Development 1,153,233.30
Foreign Affairs and International Trade 976,004.05
Local Government and Public Works 1,220,136.19
Health and Child Care 6,311,893.76
Primary and Secondary Education 7,965,973.53
Higher & Tertiary Education, Science and Technology Development 2,355,379.81
Women Affairs, Community, Small and Medium Enterprises Development 188,136.70
Home Affairs and Cultural Heritage 3,931,884.37
Justice, Legal and Parliamentary Affairs 1,078,019.36
Information, Publicity and Broadcasting Services 122,360.10
Youth Empowerment, Development and Vocational Training 210,207.26
Energy and Power Development 90,082.79
Information Communication Technology and Courier Services 185,280.61
National Housing and Social Amenities 352,980.55
Veterans of the Liberations Struggle Affairs 221,787.75
Tourism & Hospitality Industry 71,071.79
Sport, Arts and Recreation 136,233.11
Skills Audit and Development 43,045.20

68
 Vote Z$
Judicial Services Commission 274,035.50
Public Service Commission 1,428,094.81
National Council of Chiefs 39,938.94
Human Rights Commission 42,117.76
National Peace and Reconciliation Commission 56,007.63
National Prosecuting Authority 98,272.65
Zimbabwe Anti-Corruption Commission 59,642.47
Zimbabwe Electoral Commission 116,600.57
Zimbabwe Gender Commission 48,535.06
Zimbabwe Land Commission 52,937.84
Zimbabwe Media Commission 34,929.51
TOTAL 44,011,918.31
Unallocated Reserve 6,785,233.03
Debt Service: Interest Bill 1,176,218.57
Pension 4,617,934.86
Transfers to Provincial Councils and Local Authorities 2,696,764.92
Other Constitutional & Statutory Appropriations 255,612.57
Total Expenditure & Net Lending** 59,543,682.27
** This figure includes retention revenues of Z$1.3 trillion

Fiscal Risk Outlook

159. The Fiscal Risk Outlook provides a profile of potential events

that may adversely impact on public finances and fiscal
forecasts contained in the Budget Statement. Fiscal risks take
various forms and tend to reinforce each other.

160. Major risks to the 2024 National Budget Framework relate to

macroeconomic shocks, natural disasters, global developments
and side effects of expenditure policy decisions taken outside
the approved framework during budget implementation.

69
161. Materialisation of such risks undermines the performance
of public finances and results in variances between fiscal
outcomes and expectations, as well as impact on the credibility
of sound fiscal management and macroeconomic stability.

Macroeconomic Risks

162. Global economic recovery remains slow and uneven, impacting

on commodity prices for some of the country’s major exports.
Given the country’s high dependency on commodity exports, a
1% shock in global prices affects exports receipts by between
0.55% to 0.7%, depending on severity and longevity of the
shock.

163. Furthermore, the volatility in food, fuel, fertilizer, and metal prices
may increase the cost of critical imports for the economy and
the current account position, including liquidity in the foreign
exchange market. Crucially for the Budget, fiscal revenues,
particularly royalties and corporate income taxes for exporting
companies will fall, whilst expenditure outlays dependant on
imported items would increase.

164. To mitigate these risks, the 2024 National Budget Framework

has prioritised measures to intensify value addition and
beneficiation, particularly of minerals and agricultural products,

70
 including domestication of some value chains, in order to
increase the value of export receipts, as well as insulate the
economy against the volatility of commodity prices.

Exchange Rate and Inflation Risks

165. Exchange rate depreciation remains a major source of risk

for the 2024 National Budget Framework. Volatility in the
exchange rate de-anchors inflation expectations. Given the
indexation of prices to the exchange rate, a 1% depreciation
of the exchange rate, has an equal direct impact on inflation.

166. On the fiscal front, such volatility adversely affects revenue

collection and increases public expenditures, particularly
those denominated in foreign currency, thereby widening the
fiscal deficit. It is estimated that a 1% depreciation of the local
currency, widens the fiscal deficit by about 0.01% of GDP and
debt by 0.8%.

167. To mitigate these risks going forward, Government will refine

and further strengthen the macroeconomic stabilisation
measures, through continued implementation of tight fiscal
and monetary policies, as well as liberalisation of the foreign
exchange market.

71
 Revenue Risks

168. In the outlook, revenue collection risks may emanate from lower
tax compliance, an unstable macroeconomic environment,
emerging trends by taxpayers such as grey transactions
informalisation of the economy, tapering commodity prices,
and transfer pricing, illicit financial flows, particularly in the
mining sector.

169. High levels of dollarisation of the economy are also driving

transactions into the shadow economy, thus keeping tax
revenues lower than they otherwise would be. Actual revenue
collection is showing that US dollars account for only 48% of
the total revenue, against the estimated US dollar transactions
in the economy of about 78%. This anomaly, if allowed to
continue, will significantly erode the tax base.

170. To mitigate the risk, Government is making concerted efforts

to collect all outstanding debt, upgrading ZIMRA ICT systems
and upscaling data matching and analysis of clients’ profiles
to check compliance, as well as designing tax policies that
targets the informal sector.

72
 Budget Risks

171. The increasing share of the wage bill to total expenditures,

reduces budget flexibility and crowds out critical developmental
and social related expenditures that support durable and
inclusive growth, as well as interventions meant to improve
the welfare of citizens.

172. Similarly, about 60% of the budget is US dollar linked, and

hence, vulnerable to any changes in tax receipts in US dollars,
more so, as foreign currency inflows into the Consolidated
Revenue Fund account for only 48% of total revenue.

173. In addition, Government has assumed servicing of the

Central Bank’s external liabilities as part of macroeconomic
stabilisation measures. The takeover of this debt is estimated
at US$1.8 billion, the prudent management and financing
of this liability will be critical in ensuring debt sustainability,
as well as protecting critical social spending programmes in
health, education, water and sanitation and provision of social
services.

174. Given the above, further expenditure rationalisation measures

will be unavoidable. Such measures include entrenching value
for money in all public procurement processes, benefiting from

73
 the recently introduced e-procurement system, as well as
improvements in the quality of expenditures, especially public
investment. Wherever possible, projects that generate cash
flow streams will be funded off budget.

Climate Change Risks

175. Climate change has increased the frequency and severity of

natural disasters which subject the budget to various distinct
fiscal risks. The anticipated El-Nino phenomenon, which in
the past typically has raised global food prices by more than
6%, poses further macroeconomic and fiscal risks. Climate
forecasts suggest a strong El-Nino drought.

176. If this risk materialises, the agriculture sector is projected to

contract by 4.9% in 2024 and this will pose a significant threat
to food security, livelihoods, agriculture, livestock, nutrition,
health and water, sanitation and hygiene (WASH). This is
anticipated to slow down economic growth by 0.6%, to 3.5%
percent depending on its intensity.

177. Previous droughts increased significantly fiscal deficits by an

average of 0.4% of GDP.

178. In order to mitigate the risk, Government is focusing on

supporting production under the available irrigable hectarage,

74
 distributed seed varieties appropriate for each ecological
agricultural region, with farmers being encouraged to stagger
planting of crops, as well as initiate early importation of grain.

DEVELOPMENT PARTNER SUPPORT

179. In line with NDS1 and international best practices, the

Development Assistance Coordination Architecture is being
strengthened through operationalisation of the Development
Cooperation Policy (DCP) and its Manual of Procedures.

180. The DCP adopts a sector wide approach to coordination and

management of development assistance, setting the foundation
for strengthened cooperation between Government and
Development Partners, as well as ensuring that development
assistance is properly integrated and coordinated with the
country’s planning and budgeting processes.

181. The policy also seeks to ensure that Government gradually

improves the reporting and accountability of development
assistance. Multistakeholder engagements and dialogue
are central to strengthening the development cooperation
architecture.

182. Thus, operationalisation of the DCP has involved setting up of

a three-tier Dialogue Forum, establishment of Sector Working

75
 Groups (SWGs) and the Development Projects Management
Information System (DEVPROMIS), to enhance transparency
and accountability of official development assistance.

The Development Projects Management Information System

(DEVPROMIS)

183. The web-based Development Projects Management

Information System (DEVPROMIS) has been fully established
and now live, with over 200 projects in the System.

184. In order to have accurate and reliable information on

development assistance inflows and projects under
implementation, Line Ministries will be capacitated to upload
information on all Development Partner supported projects
during 2024.

185. Development Partners are encouraged to embrace this new

System to improve the management of development assistance
and enhance comprehensive monitoring and evaluation of all
development projects implemented in the country.

186. During the period January – September 2023, the country

received development assistance amounting to US$549.8
million, of which US$377.2 million was from bilateral partners
and US$172.5 million from multilateral partners.

76
187. The resources were channelled to support development
programmes and projects in various sectors of the economy,
complementing Government’s efforts to achieve its goals as
enunciated in the National Development Strategy 1.

188. For the year 2024, Development Partners’ support is projected

at US$638 million as indicated in the Table below.

Table 31: Development Partner Support

SECTOR ACTUAL PROJECTIONS
DISBURSEMENTS
2023
(Jan- Sep) Q4 2023 2023 2024
Agriculture 67,827,295 22,661,523 22,725,472 60,127,234
Education 12,149,998 5,934,497 25,347,515 24,962,693
Emergence Response 72,912,655 22,709,030 11,617,228 48,884,362
Energy 21,853,527 2,450,000 13,495,636 9,842,823
Forestry 3,177,485 3,036,937 5,557,488 4,182,305
Governance 45,034,585 12,745,507 45,601,980 29,647,148
Health 309,387,621 106,436,090 213,393,778 435,962,003
Manufacturing & Value Addition 858,291.75 - 5,714,580 1,060,000
Mineral Resources & Mining 0.00 - 212,000 300,000
Other Social Infrastructure &
6,992,467 4,578,525 4,809,737 5,350,476
Services
Tourism 0.00 - 820,000 985,821
Trade Policies & Regulations 1,052,524.30 - 1,382,430 -
Transport & Storage 469,000 - 487,000 5,018,000
Water and Sanitation 8,095,143 4,250,000 6,670,000 12,355,012
Total 549,810,591 184,802,109 357,834,845 638,077,877
Source: MOFEDIP

THE 2024 BUDGET PRIORITY AREAS

189. The priorities of 2024 National Budget have largely benefited

from the NDS1 Mid-Term Review, as well as input from
stakeholders. The focus is on consolidating economic

77
 transformation, as part of the process to create a resilient and
advanced economy which has the capacity to generate decent
jobs and higher incomes. Therefore, the 2024 National Budget
has nine priority areas as follows:

• Economic Growth and Macro-Economic stability;

• Supporting Productive Value Chains;
• Infrastructure, ICTs and Digital Economy;
• Youth, Sport, Arts and Culture;
• Women, Gender Equity and SMEs;
• Devolution and Decentralisation
• Human Capital Development, Well-being and Innovation;
• Effective Institution Building and Governance; and
• Image Building, Engagement and Re-engagement including
Arrears Clearance and Debt Resolution.

Economic Growth and Macro-Stability

190. Since 2021, the economy has been on a positive growth

trajectory with real GDP growth of 8.5% in 2021, 6.5%
in 2022 and a projected growth rate of 5.5% in 2023. This
growth trajectory is in line with NDS1 targets, notwithstanding
significant external global shocks which were experienced
during this 3-year period.

78
 197. Since 2021, the economy has been on a positive growth trajectory with real GDP growth of

Figure 19: GDP Growth vs NDS1 targets

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ϴ͘Ϭ
ϲ͘Ϭ
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Ϭ͘Ϭ
;йͿ

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Ͳϲ͘Ϭ
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ͲϭϬ͘Ϭ
ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮ ϮϬϮϯ ϮϬϮϰ ϮϬϮϱ ϮϬϮϲ
KƵƚƚƵƌŶ ϱ͘Ϭ Ͳϲ͘ϯ Ͳϳ͘ϴ ϴ͘ϱ ϲ͘ϱ ϱ͘ϱ ϯ͘ϱ ϱ͘Ϭ ϱ͘Ϭ
E^ϭ ϳ͘ϰ ϱ͘ϱ ϱ͘Ϯ ϱ͘Ϯ ϱ ϱ

Source: MoFEDIP
Source: MoFEDIP

191.
198. However, this hasgrowth
However, this growth has bybeen
been dominated dominated
primary commodity industryby primary
in mining and
commodity
agriculture, whichindustry in mining
makes the economy andto agriculture,
vulnerable which
climate change and makes
the volatility of
international commodity prices.
the economy vulnerable to climate change and the volatility of
international commodity prices.
199. Hence, this Budget seeks to advance the economic transformation process already
underway, building on the production gains achieved so far through increasing production
192. Hence, this Budget seeks to advance the economic
and productivity of the economy. The thrust is gravitating towards value addition of primary
transformation process
products which are otherwise exportedalready
in raw form. underway, building on the
production gains achieved so far through increasing production
and productivity of the economy. The thrust is gravitating
50
towards value addition of primary products which are otherwise
exported in raw form.

193. This is important for the economy to be able to generate decent

jobs, expand revenue capacity, grow export receipts, thereby
enhancing the resilience of the economy to various shocks.

79
194. The projected growth rate of 3.5% in 2024, takes into account
the expected El-Nino phenomenal, as well as the impact of
continued geopolitical tensions. To achieve the NDS1 and
Vision 2030 objectives, the country needs to develop capacity
to produce enough to meet domestic requirements and upscale
exporting of value-added products.

195. In this regard, the 2024 National Budget will focus on

sustaining inflation and exchange rate stability in order to
create a conducive economic environment that promotes
private sector led growth, creates new opportunities for wealth
creation, innovation and enterprise development.

196. The core policy instruments for stability, fiscal and monetary
policies, will be complemented by structural reforms aimed at
removing bottlenecks and to lower the domestic cost of doing
business critical for the country to attract investment.

197. The achievement of the desired long-term stability requires

collaboration by all stakeholders, including exercising discipline
by the economic players and agents, especially as it relates to
speculative behaviour.

80
 2024 Fiscal Policy Thrust

198. A successful macro-economic stabilisation programme that

supports inclusive growth requires adherence to strict fiscal
discipline, where MDAs spend within their approved budget
allocations and a budget deficit that is not funded by the
printing of money.

199. In this regard, the fiscal policy thrust for the 2024 National
Budget is guided by the need to maintain a sustainable
budget deficit within the SADC macro-economic convergence
threshold of not more than 3% of GDP. This benchmark
is sacrosanct, as Government enhances the country’s
perceptions on effective macroeconomic management which
has been the hallmark of the Second Republic.

200. This will be achieved through prudent fiscal management,

anchored on cash budgeting, complemented by public
finance management reforms that ensure value for money,
transparency and accountability in order to contain spending
and enhance the efficient use of public resources. In this
regard, strategies to realise this includes the following:

• Continued implementation of demand management

measures such as rationalisation of travel expenditure and
other non-essential expenditures;

81
 • Strengthening of the public procurement system, as well
as introduction of pooled procurement of generic goods;
• Recruitment freezes for non-critical posts, with recruitment
permitted in the social and other critical sectors;
• Avoidance of quasi-fiscal operations, ending all unbudgeted
expenditures;
• Streamlining of Government Institutions to avoid duplication
of effort;
• Improving Public Investment Management through skills
enhancement, enforcing effective contract management,
stronger supervision, improving quality of investments,
tightening of procurement and ensuring compliance to the
project development cycles, and
• Ensuring infrastructure projects that generate cash flows
are funded off budget.

201. This will be complemented by revenue mobilisation measures,

the only way of delivering sustainable public services, as it
ensures greater control on the country’s development path, as
well as reducing aid dependency.

Price and Exchange Rate Stability

202. Stabilisation measures introduced by Government in May

and June 2023 have brought relative price and exchange
rate stability, as the market responds to the interventions.

82
 Going into 2024, Government will consolidate and entrench
economic stability to facilitate economic transformation and
preserve disposable incomes. Stability allows businesses to
operate efficiently and eliminates distortions characterised by
multi-tier pricing.

203. Generally, price stabilisation takes time and requires foregoing

short-term benefits for longer term macroeconomic stability.
Hence, the need for consistent implementation of tight
monetary and fiscal policies until durable stability is achieved.

204. Fiscal restraint, together with a healthy current account

position, provides the necessary conditions for currency and
price stability. In this regard, to effectively manage liquidity in
the economy, the Central Bank Monetary Policy Committee is
expected to continue to implement policies that maintain non-
inflationary liquidity of the local currency and a stable exchange
rate. Specifically, the Central Bank will target month-on-month
inflation rate of less than 3% throughout 2024.

205. Achievement of this target is crucial for the integrity of the

Macro-Fiscal Framework, the foundation of the 2024 National
Budget which is also imperative to building confidence in the
local currency.

83
 Currency Regime

206. Through Statutory Instrument 218 of 2023, Government

extended the use of the multicurrency regime to 2030, in order
to allow policy space for a smooth transition towards use of
the domestic currency.

207. It is also an acknowledgement that the de-dollarisation

programme is a gradual process, requiring support from all
stakeholders, and buttressed through the implementation and
execution of a sound macro-economic stabilisation programme.
The progress made thus far in preserving currency and price
stability provides a basis for implementation of a credible all-
inclusive de-dollarisation roadmap that provides guidance to
economic agents.

208. Crucially, the re-establishment of market confidence and

gradual acceptance of the local currency will be supported by
policy consistency and effective synchronisation of fiscal and
monetary policy measures. In this regard, the Central Bank
will be precluded from undertaking any quasi-fiscal operations
and Government will ensure strict fiscal discipline, as well as
adherence to the approved budget and a sustainable budget
deficit that is not funded by the printing of money.

84
209. To give impetus to the de-dollarisation process during 2024,
Government will introduce additional guidelines on mandatory
payment of public services and taxes in local currency, whilst
also introducing indexed local currency instruments to the
market. Furthermore, monetary policy will be recalibrated to
support the use of the local currency and the gradual build-up
of foreign currency reserves.

210. The above measures will be complemented by further foreign

exchange market reforms that will arrest, all forms of market
indiscipline and rent seeking behaviour.

Public Procurement

211. The launch of the electronic Government Procurement (eGP)

System on 23 October 2023, provides scope for more efficient,
inclusive and transparent procurement processes that will close
weaknesses in the existing procurement systems, such as
irregular payments, poor corporate governance, opaqueness
in the award of contracts, among others.

212. The potential benefits of e-procurement are limitless, as it

removes the involvement of the human element in the process,
introduces fair competition, reduces transaction costs for
both buyers and suppliers and brings inclusivity by reaching

85
 remote areas, whilst also shortening the procurement cycle
times. Furthermore, the system allows for the development of
a common database that will enhance policy decision making.

213. Such improvements engender efficient public expenditure

management, particularly for high-value procurement by
providing better value in terms of lower prices and higher
quality products, as well as reducing price differentials across
procuring entities.

214. The overall economy stands to benefit from a competitive,

transparent and fair public procurement process that rewards
efficient suppliers and penalises ‘tenderpreneurs’ whose
success is based on informal connections and/or relationships,
rather than the ability to supply quality and better priced goods
and services. These “tenderpreneurs” also use the illicit gains
to manipulate the foreign exchange market.

215. During 2024, Government will operationalise the

e-Procurement system across all levels of Government and
ensure its integration with the Public Finance Management
System, to reinforce the current value-for-money initiative.

216. Furthermore, centralised or pooled procurement for

homogenous products such as uniforms, vehicles, computers

86
 and consumables, among others, will be enforced across
all Ministries, Departments and Agencies (MDAs). This will
enable procuring entities to achieve cost effectiveness from
economies of scale, reduction in administrative burden and
inefficiencies, as well as combating corruption.

217. It is envisaged that the pooled procurement will generate

substantial savings for the fiscus, thereby creating fiscal space
to intervene in other critical areas, especially social sectors.

Standardised Price Lists

218. To further entrench the Value for Money initiative, Government

issued standardised price lists for three categories of goods
and services namely: groceries, stationery supplies, and hotel
and conferencing, as part of the Value for Money initiative
which has brought sanity in the pricing of goods and services.

219. Additional categories of standardised prices will be issued

during the 2024 financial year.

Civil Service Remuneration

220. Civil servants play a pivotal role in public service delivery and
their commitment to duty is critical to the achievement of national
objectives. The remuneration costs of Government employees
constitute a major cost to overall fiscal expenditures.

87
221. Decisions on the public service pay framework for 2024, which
are still subject to negotiations with worker representatives,
will cover the review of monetary and non-monetary benefits
for civil servants.

222. Taking account of the constrains facing the economy, the

outcome of this engagement must strike a balance between
fair compensation for employees to meet their basic needs and
affordability considerations, also taking account of the need to
upscale staffing levels for critical sectors such as education
and health, among other issues.

223. As part of the remuneration review process, Government will

convert the current COVID-19 and Cushioning allowance
aggregating to US$300 to be part of the pensionable
emoluments across the board, effective January 2024.

224. Government is also paying the 13th cheque for the year
2023 to all civil servants, which has been staggered between
November and December.

Public Sector Medical Insurance

225. Government remains committed to ensuring the provision of

adequate medical insurance cover for all members of the civil
service that allows them access to comprehensive medical

88
 services. The poor performance of the public health insurance
scheme has seen public sector workers incurring huge medical
expenses and some failing to access such services.

226. In this regard, Government has started addressing some of the

corporate governance and operational deficiencies at PSMAS,
in order to restore efficiency and effective functionality of the
scheme.

227. While work is underway to address the corporate governance

issues at PSMAS, the 2024 Budget has made a provision
to cater for the agreed monthly health care costs pegged at
US$10 or the local currency equivalent for each employee and
the prescribed beneficiaries.

228. The disbursement of resources to PSMAS will be conditional

on a satisfactory resolution of all the corporate governance
and operational deficiencies.

Hiring of Civil Servants

229. The Public Service Commission conducted a job evaluation

exercise of the civil service during the period November 2022
to April 2023. The Report uncovered several instances of
duplications and overlaps of roles, both within and between
Ministries.

89
230. In view of this, Government through the Public Service
Commission will implement the recommendations of the report
which will go a long way in right sizing the civil service, while
improving the skills base through appropriate training across
all levels to ensure improved and efficient service delivery. To
this end, the Budget earmarks resources for completion of the
critical job evaluation exercise.

231. As part of initiatives to contain employment costs within the

desired thresholds, Government will continue to uphold the
general hiring freeze policy on non-critical posts. Furthermore,
the filling of posts within the newly created Ministries should
benefit from the use of existing pool of civil servants through
transfers and promotions.

Budget Execution

232. Budgeting is a rule-based process that regulates the raising

and spending of public resources. Even under unavoidable
instances such as exogenous shocks, clear guidelines and
procedures must be followed and adhered to by all public
entities.

233. Deviations from the approved budget by MDAs often leads

to a significant shift in spending away from programmes that
address the needs of citizens, increases pressure to overspend

90
 and invariably leads to waste in the use of public resources.
In some cases, MDAs use Cabinet and the Principals to
circumvent clearly laid out procedures. As a result, public trust
is eroded and the integrity of the whole budget process is
undermined.

234. Given the importance of effective Budget execution in the

credibility of the overall public finance management system,
Treasury will be introducing measures to address this challenge,
including enforcement of sanctions on errant MDAs.

Supporting Productive Value Chains

235. During the first half of NDS1 implementation, Government

has made progress in revitalising production, specifically in
agriculture and mining. This development has guaranteed
the country’s food security and enhanced foreign currency
generation, critical for macroeconomic stability and setting the
stage for economic transformation by moving from a primary
commodity-based economy, to higher value-added activities.

236. This will be achieved through industrial technology upgrading,

research and development, workforce skills enhancement and
modernising infrastructure, among others.

91
237. Transformation of primary products into processed and
complex products through value addition is the linchpin of the
envisaged NDS 1 industrial transformation strategy.

238. In response to the prevailing domestic economic dynamics,

there has been increased informalisation of business activity
across all sectors, with informality now playing an important
role in the country’s economy.

239. In this regard, the 2024 Budget, seeks to promote the

formalisation of the sector by addressing the various
constraints they face which include complex registration
requirements, information asymmetry, access to credit, as
well as strengthening linkages with formal businesses, among
other issues.

Agriculture

240. The country has made progress in the transformation of the

agriculture sector under the Agriculture and Food Systems
Transformation Strategy. This strategy focuses on innovation,
adaptation, diversification based on liberalised marketing
systems, and mechanisation with the goal of improving
resilience and recovery from climate shocks, that way, ensuring
sustainable food security for the nation.

92
241. Notable success has been on increased domestic production
of strategic crops in which the country has made significant
progress towards meeting national requirements for grain. The
achievements place the country on-track to sustainably achieve
food security, self-sufficiency, as well as nutrition security
by 2025, in line with NDS1 targets. This is notwithstanding
challenges posed by the continued devastating effects of
climate change, coupled with geopolitical tensions.

242. The milestone is on account of strategic decisions to adopt

climate smart conservation agriculture practices under the
Pfumvudza/Intwasa scheme, coupled with continuation of input
support programmes for farmers, including the vulnerable,
liberalised agricultural marketing frameworks, improvement in
extension services, mechanisation and irrigation development.

243. Going forward into 2024, Government’s thrust is on

consolidating the gains achieved so far by firming up
production, whilst taking further steps to enhance productivity
in the sector to reduce cost of production, thereby making
agricultural production more competitive.

244. In this regard, Z$4.3 trillion is being allocated to Ministry of

Lands, Agriculture, Fisheries, Water and Rural Development
to spearhead the implementation of the Strategy.

93
245. Government interventions in the sector will be complemented
by development partner support projected at US$60.1 million
which is expected to go towards provision of agriculture
development and food security assistance.

Rural Development 8.0

246. Focus will be also on transformation of rural economy

through agriculture development under the auspices of Rural
Development 8.0. The Programme seeks to promote rural
development anchored on agriculture activities by promoting
agro-businesses, value addition of agriculture products and
creating market linkages.

247. Government will promote organised business models which

brings together farmers, entrepreneurs, financiers and
markets, establishing a complete business cycle that empower
communities, create employment, improves the standards of
living of marginalized communities and the inclusion of youths,
women and people living with disabilities.

248. This model should, therefore, uplift the livelihoods of the

rural population and reduce rural to urban migration through
economic empowerment and inclusivity in the ten provinces in
line with Devolution and Decentralization Policy.

94
249. To this end, the 2024 National Budget has set aside resources
to enable Government to continue to support the following
Presidential Programmes and Projects under the sector to
promote productivity, build resilience and transform agriculture
activities:

• Climate proofed Inputs Scheme (Pfumvudza/Intwasa);

• Cotton Scheme;
• Rural Horticulture Development Programme;
• Poultry Scheme;
• Blitz Tick Grease Scheme;
• Goat Scheme;
• Community Fisheries Schemes;
• Irrigation development anchored on V-30 accelerator
model.

250. This will also be complimented by other interventions in the

sector, including the Presidential Borehole Scheme. This
is expected to build resilience of the sector and the rural
communities to ensure food security even in the event of
extreme weather patterns, such as the forecasted El-Nino
induced drought.

251. The agricultural sector is projected to contract by 4.9% in

2024, attributed to the anticipated normal to below-normal

95
 rainfall pattern in the 2023/24 farming season, reducing the
production of major crops, as the country builds resilience.

Figure 20: Agriculture Sector Growth (%)

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Source: MOFEDIP, RBZ & ZIMSTAT
Source: MOFED, RBZ & ZIMSTAT

Agriculture
Agriculture Productive
Productive Social
Social Protection Protection

252. In its effort to ensure food and nutritional security at

259. In its effort to ensure food and nutritional security at household level, under Rural
household
Development 8.0,level, under
Government Ruralagriculture
is providing Development 8.0, Government
inputs to vulnerable households under
is providing
the agriculture
Agriculture Input inputs
Support Scheme to vulnerable
(Pfumvudza/Itwasa) households
targeting under
1.1 million hectares
under
the cereal and oil seeds
Agriculture production
Input at an estimated
Support Schemecost equivalent to US$234 million for
(Pfumvudza/Itwasa)
the 2023/24 summer cropping season.
targeting 1.1 million hectares under cereal and oil seeds
production at an estimated cost equivalent to US$234 million
260. The Programme targets to support 1.2 million households, inclusive of 180 000 cotton
for theOf2023/24
growers. summer
these targeted cropping
beneficiaries, season.
about 300 000 are vulnerable households from
urban areas.
253. The Programme targets to support 1.2 million households,
inclusive
261. To mitigate the of 180impact
negative 000 cotton El-Nino
of anticipated growers. Of these
induced drought, targeted
distribution of inputs
beneficiaries,
packages for various about 300
crops such 000
maize, smallare vulnerable
grains households
and oil seeds are being tailored tofrom
agro
urban areas.
ecological regions.

262. As at 20 November 2023, the Grain Marketing Board (GMB) had received about 10 742 MT
96
of seed, of which 7 044 MT was distributed to farmers. With regards to fertilizers, the GMB
had received 65 672 MT, of which 50 016 MT had been delivered to farmers.
254. To mitigate the negative impact of anticipated El-Nino induced
drought, distribution of inputs packages for various crops such
maize, small grains and oil seeds are being tailored to agro
ecological regions.

255. As at 20 November 2023, the Grain Marketing Board (GMB)

had received about 10 742 MT of seed, of which 7 044 MT was
distributed to farmers. With regards to fertilizers, the GMB had
received 65 672 MT, of which 50 016 MT had been delivered
to farmers.

256. To ensure transparency and efficient distribution of inputs,

Government has put in place monitoring measures to promote
accountability and transparency in the use of public resources.

The National Enhanced Agriculture Productivity Scheme

257. Government used to support commercial farmers under the

National Enhanced Agriculture Productivity Scheme (NEAPS),
through extending guarantees to commercial banks. However,
due to high levels of defaulters and unwillingness by farmers
to deliver produce to the GMB, Government has reviewed
this financing model to give room to a more commercialised
approach led by private financial institutions.

97
258. During the upcoming 2023/24 agriculture season, Government
is only extending partial guarantees to AFC and NMB, while the
rest of the financial institutions participating in the programme
will use their own financial resources.

259. This is part of the agriculture financing reform to reduce the

burden on the fiscus and letting the financial sector play its
role.

Livestock

260. Government’s effort on combatting livestock diseases is

bearing fruits as evidenced by the growth in the national herd.

Figure 21: National Cattle Herd

5,774,525

5,642,400

5,489,720 5,509,983
5,478,648
5,443,770

2017 2018 2019 2020 2021 2022

Source:
Source:Ministry
MinistryofofLands,
Lands,Agriculture, Fisheries,
Agriculture, Water
Fisheries, and Rural
Water Development
and Rural Development

268. However, the anticipated poor rainfall season during the 2023/24 will compromise livestock
261. However, the anticipated poor rainfall season during the
production, hence, Government will implement mitigatory measures to protect the national
2023/24 will compromise livestock production, hence,
herd through the following measures:
• Setting up modalities to relocate stock from highly vulnerable areas, to regions with
98
minimal exposure to the potential drought;
• Hay baling targeting stock in moderate exposure; and
 Government will implement mitigatory measures to protect the
national herd through the following measures:

• Setting up modalities to relocate stock from highly

vulnerable areas, to regions with minimal exposure to the
potential drought;
• Hay baling targeting stock in moderate exposure; and
• Encouraging farmers with smaller herd sizes to destock
part of the herd to manageable levels and preserve value
of the excess stock.

262. In 2024, Government has set aside an amount of Z$364.3

billion towards livestock programmes as follows:

99
 • Presidential Blitz Tick-Grease Scheme;
• Tsetse eradication;
• Construction and rehabilitation of dip tanks;
• Laboratory diagnostics for animal disease screening and
confirmation;
• Local production of animal vaccines;
• Cattle Genetic Improvement; and
• Artificial insemination.

Cattle Dipping

263. Government seeks to maintain and grow the national cattle

herd by putting in place measures to reduce the threat of tick-
borne diseases through animal health surveillance systems
and rehabilitation of dip tanks across the country.

264. To contain the prevalence of tick-borne diseases (January

diseases) during the high rainfall period season, in 2024,
Government has set aside Z$42.4 billion for dip chemical
procurement including 1.5 million kilogrammes of tick grease
for distribution to smallholder livestock producers.

265. In 2024, Government has set aside Z$3.5 billion targeting the
construction, rehabilitation and maintenance of 500 dip tanks
across the country.

100
 Irrigation Development

266. As part of measures to drought proof agriculture and guarantee

food security at household and national level, Government is
implementing the National Accelerated Irrigation Rehabilitation
Programme, which seeks to develop, rehabilitate and maintain
communal irrigation schemes, as well as capacitate A2 farmers.

267. This rehabilitation and installation of irrigation infrastructure

at the existing water sources will reduce reliance on rain-fed
agriculture, which continues to be affected by climatic shocks.

268. To support the projects and initiatives under the Programme,

Government has set aside an amount of Z$220.8 billion in
2024 towards the following activities:

• Irrigation rehabilitation;
• Development of irrigation infrastructure; and
• Maintenance of communal irrigation schemes.

269. In addition, the Smallholder Irrigation Revitalisation Programme

targets to rehabilitate 5 202 ha in order to enhance food security,
including adaptation and mitigation of climate change shocks
among smallholder farmers in the 4 targeted Provinces.

101
 Mechanization

270. In order to guarantee food security for the country in both good
and bad years, as well as to increase domestic production and
productivity in the agriculture sector, Government is supporting
mechanization farming techniques through the introduction of
appropriate machinery and SMART technologies.

271. Therefore, the Government will continue strengthening its

partnership with the private sector to provide small holder
mechanization equipment. The thrust is to capacitate domestic
Service Providers (SPs) with capacity to import and locally
manufacture necessary farming machinery and implements,
such as tractors, planters, irrigation equipment, combine
harvesters and other implements.

272. A total of Z$82.6 billion has been set aside in furtherance of

this thrust of mechanisation through the fiscus.

Agriculture Marketing

273. Government has successfully liberalised the marketing of

agricultural products with GMB now being a buyer of last
resort for grain. The Zimbabwe Mercantile Exchange (ZMX)
through the warehouse receipt system is now responsible
for marketing of grain and is expected to expand coverage

102
 to other crops including all other commodities listed on the
exchange, such as oilseeds, livestock and horticulture.

274. This development is expected to enhance price discovery

and reflects wider agriculture markets, bringing efficiency in
the marketing of agriculture commodities, critical for attracting
investment. This is in line with the NDS1 objective of creating
a more competitive and sustainable agriculture ecosystem,
and establishing predictability in the marketing of agricultural
produce.

275. Therefore, the 2024 National Budget will target procurement

of strategic grain reserve enough to cover for one year.

Horticulture Export Revolving Fund

276. In 2022, Government established the US$30 million Horticulture

Export Revolving Fund (HERF) meant to empower horticulture
farmers with affordable capital and working capital to promote
horticulture revival in the country.

277. The Fund is accessed through the following banks; FBC

Bank, CBZ, NMB Bank, CABS Bank and the AFC Land and
Development Bank.

278. During the period January to September 2023, US$2.5

million was disbursed to finance the production of avocado,

103
 macadamia nuts, flowers, chilli and cherry peppers. The Fund
284. is
TheaFund is accessed through
partnership between the following
private banks; FBC and
sector Bank, Government,
CBZ, NMB Bank, CABS
with
Bank and the AFC Land and Development Bank.
the latter providing guarantees.

285. During the period January to September 2023, US$15 million had been disbursed through
Manufacturing
CBZ and NMB, with the remainder expected to be disbursed in 2024. The Fund is a
partnership
279. The between private sector
manufacturing sector andhas
Government, with the later providing
been recording steadyguarantees.
gains in
volume and capacity utilisation, as well as increase in availability
Manufacturing
of domestically produced goods in the supermarkets shelves
286. over the recent
The manufacturing years.
sector has been recording steady gains in volume and capacity utilisation,
as well as increase in availability of domestically produced goods in the supermarkets shelves

280. This
over theis being
recent years. aided by access to foreign currency through

the auction system, throughput from the agricultural sector,

287. This is being aided by access to foreign currency through the auction system, throughput
improved levels of investment and access to foreign currency
from the agricultural sector, improved levels of investment and access to foreign currency
from
from thethe market.
market.

Figure 22: Manufacturing Sector Growth (%)

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Source: MoFEDIP,
Source: MoFED, ZIMSTAT,
ZIMSTAT, RBZRBZ

104
67
281. In 2024, the sector is projected to grow by 1.6%, whilst capacity

288. Inutilisation is expected

2024, the sector togrow
is projected to average
by 1.6%,60%
whilston account
capacity of isexpected
utilisation expected to
price and exchange rate stability, improvement in electricity
supply, as well as increased usage of the local currency.

Figure 23: Industry Capacity Utilisation (%)

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282. However, there is room to enhance the sector’s capacity to grow

289. However, there is room to enhance the sector’s capacity to grow the country’s exports, create
the country’s exports, create employment opportunities, as
employment opportunities, as well as enhance the resilience of the economy against shocks
well as
through enhance
a vibrant the resilience
and competitive of sector.
manufacturing the economy against shocks
through a vibrant and competitive manufacturing sector.
290. To sustain the gains recorded so far in the manufacturing sector, an amount of Z$130.5 billion
283. isTo sustain
being allocated the
to thegains
Ministry recorded
of Industry andsoCommerce
far in tothe manufacturing
support development and
implementation of industrial policy and the retooling of the industry.
sector, an amount of Z$130.5 billion is being allocated to the
Ministry of Industry and Commerce to support development
Industrial Policy
and implementation of industrial policy and the retooling of the
industry.is finalising the formulation of the Zimbabwe National Industrial Policy which will
291. Government
run from 2024 to 2030. The policy is a successor to the current “Zimbabwe National Industrial
Development Policy” which is coming to an end in December 2023.
105

292. The new Policy will be aligned to Vision 2030, international and regional policy frameworks
 Industrial Policy

284. Government is finalising the formulation of the Zimbabwe

National Industrial Policy which will run from 2024 to 2030.
The policy is a successor to the current “Zimbabwe National
Industrial Development Policy” which is coming to an end in
December 2023.

285. The new Policy will be aligned to Vision 2030, international and
regional policy frameworks on industrialisation. It will provide
policy guidance on the industrialisation of the economy,
focusing on structural transformation of the economy to
increase the level of the country’s capacity for value addition
and beneficiation.

286. The objective of the policy is to ensure structural transformation

of the economy for employment creation, enhancing the value
of exports, complexity and diversity of the country’s products,
critical for building resilience, inclusive and sustainable
economic growth.

287. The Policy will also promote collaboration between the private
sector and institutions of higher learning to come up with
innovations and new products which are competitive taking
advantage of opportunities being unlocked within the African
Continental Free Trade Area (AfCFTA).

106
288. The Industrial Policy is expected to be launched during the first
half of 2024 and will be led by the private sector. Government
will provide the requisite environment for the policy to be
implemented successfully.

Industrial Retooling

289. Government will continue to facilitate the mobilisation of medium

to long-term funding to support retooling and working capital
of the local industry through negotiating offshore lines of credit
and capacitation of the Industrial Development Corporation of
Zimbabwe (IDCZ) to enable it to meet the financial needs of
the local industry.

290. In this regard, Z$44.3 billion has been set aside to capitalise
the IDCZ. Qualifying companies are encouraged to approach
the institution for financial support.

291. The placement of IDCZ under the Mutapa Investment Fund

is expected to unlock new funding from potential investors,
particularly the financial sector to enhance its balance sheet.

Buy Local

292. As part of the strategy to support the local industry, Government

calls upon all consumers to prioritise the purchase of local

107
 products over imports, as a strategy to preserve domestic jobs
and promote value chains to unlock growth potential of the
economy.

293. This is important to sustain the recent increase in capacity

utilisation across various sub sectors of the economy and the
growth of manufactured exports. On their part, local industries
are expected to produce competitive and quality products.

294. To guarantee the authenticity of local content origin and

quality of products and services produced in Zimbabwe, Buy
Zimbabwe, an organisation dedicated to the production and
promotion of local products and services, partnered with Quality
Management Institute of Zimbabwe (QMIZ) and Standards
Association of Zimbabwe (SAZ) to establish a robust content
and quality certification process.

295. Certified products shall bear the Buy Zimbabwe insignia,

thereby, providing assurance to consumers that the products
they are buying are of quality and produced locally.

The National Venture Fund

296. The National Venture Capital Company of Zimbabwe (NVCCZ)

which was established to support start-ups and SMEs in
order to promote innovation and generate new employment

108
 opportunities, is steadily growing with the total funds under its
portfolio currently amounting to US$1.8 million.

297. The Fund is being further capitalised through dividends and

interest income from some of the beneficiaries such as ZITCO
and Verify Engineering, as well as budget support. In 2024,
Government will further capacitate the NVCCZ with Z$34
billion in order to cater for the huge demand for capital from
the targeted groups.

298. In the outlook, the company intends to pursue co-investment

partnerships with the private sector to ease reliance on public
funds and the registering with the Southern Africa Venture
Capital Association (SAVCA) to align to international best
practices and to unlock investment opportunities. The Fund will
also explore collaborations with higher and tertiary institutions
to support innovative ideas and their commercialisation.

Mining

299. The mining sector is expected to grow by 7.6% in 2024, driven

by ongoing investments in PGMs, gold, coal and lithium, among
others. The sector is expected to maintain growth momentum
in the medium-term estimated at 4.9% and 4.8% in 2025 and
2026, respectively.

109
 306. The mining sector is expected to grow by 7.6% in 2024, driven by ongoing investments in
PGMs, gold, coal and lithium, among others. The sector is expected to maintain growth
momentum in the medium-term estimated at 4.9% and 4.8% in 2025 and 2026, respectively.

Figure 24: Mining Sector Growth (%)

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Source: MoFEDIP, RBZ & ZIMSTAT

307. This growth will be sustained by expected relatively stable electricity supply on account of
300. This growth will be sustained by expected relatively stable
increased domestic electricity production, direct import initiatives by large scale miners and
electricity supply on account of increased domestic electricity
private sector investment initiatives in renewable energy.
production, direct import initiatives by large scale miners and
private sector investment initiatives in renewable energy.
Figure 25: Mining Output (%)

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308. This is also in line with Mining Industry Survey Report of 2024 which forecasts an increase in
110in 2023 to 90% in 2024, driven by expected
capacity utilisation in the mining sector, from 84%
increase in gold and coal production.
301. This is also in line with Mining Industry Survey Report of 2024
which forecasts an increase in capacity utilisation in the mining
sector, from 84% in 2023 to 90% in 2024, driven by expected
increase in gold and coal production.

302. An amount of Z$132.7 billion has been allocated to the Ministry

of Mines and Mining Development to implement the legislative
and administrative reforms that provides a conducive
environment for mining and beneficiation.

Mineral Beneficiation

303. Government’s thrust is to upscale beneficiation along the

mining value chains to facilitate job creation across the chain,
through development of a comprehensive policy framework
that prohibits the export of raw minerals.

304. The Framework will be developed under the auspices of the

Minerals Development Policy, Beneficiation and Value Addition
Policy and the Artisanal Miners Strategy.

305. In addition, the global energy systems are undergoing a

massive transition towards cleaner energy sources such as
solar and wind from fossil fuels. However, these clean energy
technologies like batteries depend on transition energy
minerals such as copper, lithium, nickel, cobalt, manganese
and graphite.

111
306. In this regard, the country seeks to take advantage of the huge
and highly diversified mineral resource base which includes all
the five major minerals used in energy storage.

307. Therefore, Government will develop a comprehensive policy

framework to beneficiate energy minerals including lithium to
transform the country into a battery manufacturing hub.

Cadastre Information Management System

308. The Computerised Mining Cadastre Information Management

System is on its final stages of being rolled out and this is
expected to be completed in 2024. The system is expected
to enhance transparency and accountability in the mining title
management, facilitate the elimination of overlapping mining
claims, strengthening property rights and security of tenure.

309. To complete the programme, Z$13.3 billion is being allocated

under the 2024 National Budget.

Capacitation and Formalisation of Artisanal Miners

310. The small-scale miners have played a pivotal role in the

mining sector contributing significantly to the overall mineral
output over the years. Their success is partly attributable to
Government support through the provision of mining equipment
and technical assistance.

112
311. As part of the support, Government is now facilitating their
formalisation, as well as to promote environmentally friendly,
safe and sustainable mining methods.

312. Government will also capacitate the Mining Industry Loan

Fund through affordable loan schemes to support small-scale
miners to mechanise their mining activities, as well as to
improve their working capital positions.

313. To support these initiatives, Z$2.7 billion has been set aside
under the 2024 National Budget.

Mining Legal Framework

314. Government will review the Mines and Minerals Bill taking into
consideration the observations and recommendations by the
Parliamentary Legal Committee during the 5th session of the
9th Parliament. The target is to complete the process during
the first half of 2024.

Exploration of Minerals

315. The recent developments where minimum exploration is

undertaken and the mining rights are disposed of at astronomic
prices, calls for urgent exploration by Government, in order to
enable it to derive maximum value of the mineral endowments.

113
316. Financial resources should, thus, be availed for exploration
through the Zimbabwe Mining Development Company, as
this will yield more revenue to the country through auction of
already known resources or outright mining.

Participation of the state in the extraction of mineral resources

317. In order to derive maximum value of its mineral endowment,

Government will participate in the extraction of strategic
minerals such as lithium through the acquisition of equity. The
extent of the equity participation will depend on the size of
the mining operation and the strategic nature of the mineral
concerned.

Mineral Leakages

318. Government will continue to prioritise curbing of mineral

leakages through intensifying monitoring and surveillance of
the mining sector by undertaking combined blitz by all relevant
Government institutions.

Tourism

319. The tourism industry is expected to continue on a growth path

driven by increased domestic, regional and international tourists’
arrivals. Global tourism recovery and improved destination

114
 accessibility made possible by improved infrastructure which
has enabled the entry of new airlines into the country, is
boosting the tourism industry.

320. Elsewhere in the world, major sporting events have become

powerful tourism attractions in themselves, contributing
significantly to the image of the country and economy. In
this regard, investment in sport facilities and the hosting of
international/regional events will need to be prioritised as they
act as a catalyst for tourism development.

321. As part of marketing the country, Government will be hosting

four major events namely: the SADC Summit in 2024; United
Nations Economic Commission for African Ministers of Finance,
Planning and Economic Development from 28 February – 5
March 2024; International Conference on AIDS and STIs in
Africa (ICASA) in 2023; and the International Conference on
Family Planning.

322. The above-mentioned Conferences will be attended by

participants from various countries across the globe and will
all be hosted in Harare and Victoria Falls.

323. To support the operations of the Ministry of Tourism and

Hospitality Industry, an amount of Z$71.1 billion has been

115
 allocated to spearhead tourism development in the country,
as well as marketing of the country as a destination of choice.

Destination Branding and Image Transformation

324. The growth of the tourism sector will hinge on efforts to improve
the domestic tourist brand and image by empowering and
equipping destination marketers to design and implement the
most effective methods for improving the tourism destination’s
positive image.

325. Based on the NDS1 priority of Image Building and International

Re-engagement, Government will continue to capitalise
on destination competitiveness, which relates to inherited
endowments resources such as climate and scenery, as well
as competitive advantages such as tourism infrastructure,
hotels, transportation networks, festivals and events.

326. Furthermore, continued participation at flagship national and

international tourism meetings, conferences, and exhibits
(MICE tourism), marketing, and promoting Zimbabwe’s tourism
to the world through promotion programmes, will supplement
destination competitiveness and national branding. These
marketing initiatives would position the country as a distinct
and appealing tourism destination, attracting visitors from all
over the world.

116
327. In 2024, the tourism sector is set to benefit from US$1 million
allocated towards the renovations and rehabilitation of
Great Zimbabwe, Comprehensive Tourism Assessment and
Strategy Implementation Framework, as well as development
of Protected Area Management Plans for national parks.

Investment in Tourism Infrastructure

328. The substantial rise in international tourist arrivals in the

country can be partly attributed to continued investments in
the tourism industry, particularly airports and hotels.

329. In this regard, Government has commenced the refurbishment

of the additional major ports of entry namely: the Kazungula
Border Post, the Forbes Border Post, and the Nyamapanda
Border Post and highways to improve regional connectivity.

330. Infrastructure development complemented by the ‘Open Skies

Policy’ has resulted in the increase in the number of airlines
coming into the country from 3 in 2017 to current 17.

Figure 26: Airlines Coming into the Country

Year Total number Number of Number of Total
of Airlines Airlines which new Airlines Airlines
pulled out
2015 14 1 0 13
2016 13 - 2 15
2017 15 - 1 16
2018 16 - - 16

117
 Year Total number Number of Number of Total
of Airlines Airlines which new Airlines Airlines
pulled out
2019 16 1 1 16
13 (COVID -19
2020 3 - 3
Pandemic)
2021 3 - 7 10
2022 10 - 6 16
2023 16 - 1 17

331. On the other hand, the private sector is also complementing

Government’s efforts to boost the tourism industry marked
by the surge in private sector tourism investments. Notable
private sector investments include the opening of the Bulawayo
Sterling Hotel and investments made by African Sun Limited
in the refurbishing of Hwange Safari Lodge.

332. In 2024, Government will continue to allocate resources towards

rehabilitation and renovation of tourism related infrastructure
to make the country a destination of choice.

VISA Regime

333. The country has the potential to attract more tourist arrivals,
particularly from the continent by reviewing visa requirements
for some African countries. This is also in line with African
Union Free Movement of Persons Protocol, which aims to
promote free movement of people in the region.

118
 Tourism Revolving Fund

334. Since the establishment of the US$7.5 million Tourism

Facilities Services Development and Upgrading Revolving
Fund (TFDURF) through the use of SDRs in 2022, US$1.2
million was disbursed through CABS in June 2023 for the
upgrading and refurbishment of tourism facilities.

335. The Fund which is meant to resuscitate companies in the

tourism sector which were affected by the COVID-19 pandemic
is being accessed through CABS, CBZ and Nedbank.

Climate Change

336. Over the years, the frequency and size of natural disasters
such as droughts, floods and storms has markedly increased,
impacting on livelihoods and the economy. Costs arising from
tropical cyclones such as Idai and Kenneth in 2019, have
resulted huge costs to communities, infrastructure and the
economy. Such sequential occurrences invariably divert scarce
resources that would ordinarily be used for other critical social
programmes and needs such as health, education, water and
sanitation provision, among others.

337. Multiple climate prediction centres have projected an El Niño

event for Southern Africa during the 2023/2024 agriculture

119
 season, which is usually associated with drought, cyclones
and floods. This will systematically affect agricultural output
and food security.

338. Noting the huge investments required to implement climate

adaptation and mitigation programmes, such as relief,
reconstruction and social protection, Government is exploring
alternative sources of financing, including co-financing for
green investments initiatives in order to speed up the attainment
of the National and Paris Climate Agreement Goals (PCAGs).

339. In this regard, measures already undertaken to crowd in

climate finance include the following:

• Accreditation by the Global Fund of the Infrastructure

Development Bank of Zimbabwe as a direct access entity;
• Establishment of a climate finance facility of US$3 million
as seed money;
• Nomination of financial institutions such as FBC and
Steward Bank for Global Climate Fund accreditation; and
• Adoption of carbon trading and regulations by Government
through the SI 150 of 2023: Carbon Trading (General
Regulation and the Carbon Trading Framework).

340. Going forward, focus will be on implementation of the National

Adaption Plan, and mitigation actions identified in the National

120
 Determined Contribution and Long-Term Low Emission
Development Strategy as a path way to low emissions and
climate resilience.

341. Furthermore, Government will start engaging stakeholders

regarding the formulation of the Climate Change Bill that is
meant to regulate greenhouse gas emissions and facilitate
low carbon development technologies.

342. In 2024, Government will also focus on the establishment

and operationalization of the designated National Authority
for carbon credits trading, to facilitate carbon credit projects
development, registration and implementation.

343. In this regard, the 2024 Budget prioritised adaption and

mitigation programmes to be implemented through various
MDAs.

344. Deliberate efforts will be made to ensure policies and plans at

every level of Government, integrate climate change mitigation
and adaptation interventions.

Infrastructure, ICT and the Digital Economy

345. Creating a competitive economy requires infrastructure

services that are cost effective, affordable and sustainable and

121
 hence, the current thrust of reducing overall cost of delivering
projects, as well as lowering of the whole-life-cycle cost of
assets.

346. This is in line with Larry Summers’ assertion “expenditure on

infrastructure is an investment in the long-term productivity
and competitiveness of an economy”.

347. In this regard, outlays towards the sector seeks to re-establish

functional infrastructure services by improving the quantity,
quality and access in order to improve the country’s connectivity,
investment climate, reduce the cost of doing business, as well
as enable citizens to engage in socio-economic activities. When
done right, infrastructure offers opportunities for sustainable,
resilient, and inclusive growth.

348. The increasing demand for infrastructure services over the past
few years, arising from the growing economy and population,
requires new and innovative actions and reforms that fosters
social and economic inclusion along the infrastructure value
chain. This will ensure that communities, women and youth
around such projects are given opportunities to provide
services and labour as catalyst for equitable development. By
focusing on inclusivity, infrastructure provision addresses the
needs of the majority and ensures access and affordability of
the delivered asset.

122
349. The renewed focus by the Second Republic on modernising
the economy through digitalisation and innovation reflects
the global reality where digital technologies are driving
transformative change, as new technologies are reshaping
products, markets, as well as profoundly altering businesses
and work.

350. The 2024 National Budget proposals for infrastructure

investments embraces this new thrust, which also entails
realignment of policies and investments in appropriate ICT
infrastructure and systems, as well as capacitation of institutions
to support the envisaged digital economy ecosystem.

351. With Government funding increasingly being squeezed by

other budgetary requirements, constructive collaboration with
the private sector remains the most viable option of raising the
resources needed to close the infrastructure gap.

352. In this regard, Government will expand and modernise funding

models that broaden the investor base in flexible and innovative
ways such as asset recycling and PPPs. To facilitate private
sector participation, efforts will be made to address private
sector investor concerns such as cost reflective tariffs and
improvements in the regulatory environment in these sectors.

123
353. Overall support for infrastructure, including devolution, during
2024 amounts to Z$10 trillion, comprising fiscal support of
Z$8.1 trillion, complemented by statutory and other resources
at Z$1.4 trillion, development partner support of Z$189.9
billion, as well as loans at Z$322.2 billion.

354. To support interventions in the various infrastructure sectors,

the fiscal allocation of Z$8.1 trillion has been allocated as
follows:

• Energy Z$20.5 billion;

• Transport Z$744 billion;
• Water and sanitation Z$608.3 billion;
• Housing Z$1 trillion;
• ICT Z$140.2 billion;
• Education Z$393.3 billion;
• Health Z$2.1 trillion;
• Social services Z$9.5 billion; and
• Agriculture Z$307 billion

Transport

355. Improvements in our transport systems remain critical, given

the need to enhance connectivity and access, including
promotion of regional and international trade.

124
356. Investments in road catalytic infrastructure have prioritised
projects along the North-South Corridor, as well as those trunk
roads that provide linkage to critical corridors such as Beira,
given the increased traffic along such routes.

357. Focus will be on further scaling up investments in aviation

infrastructure and equipment, including provision of
complementary facilities such as control towers and airport
uplift kitchens, among others.

358. The recapitalisation of National Railways of Zimbabwe is a

major priority for the country, as it reduces the current high
transport costs for bulk freight, as well as lower the over-
dependence on road haulage, which is damaging our roads.

359. To spearhead the above projects and programmes, Z$1.2

trillion has been allocated to the Ministry of Transport and
Infrastructural Development.

Roads

360. Outlays to the sector have prioritised road rehabilitation,

upgrading and maintenance under the Emergency Roads
Rehabilitation Programme being implemented by the four road
authorities. The institutional framework for the Programme

125
 will be further strengthened to ensure value for money in the
execution of targeted road projects.

361. In this regard, a total of Z$1.4 trillion will be availed towards

the road sub-sector as indicated in the Table below.

Table 32: Source of Funding for Road Projects

Funding Source Amount (Z$B)
Fiscus 647.5
Road Fund 709. 6
Development Partner 45.0
Total 1 402.1

362. The above allocation will benefit the following road projects:

• Beitbridge-Harare-Chirundu Road,
• Beitbridge-Bulawayo-Victoria Falls Road,
• Other roads implemented by the Department of Roads, and
• Rural roads, Rural Infrastructure Development Agency.

126
363. The above interventions will be complemented by resources
from the Inter-Governmental Fiscal Transfers allocation, being
channelled through respective local authorities and targeting
community identified and driven projects.

364. Execution of road projects will rely on both domestic and

international contractors and the use of both local and
international resources. The use of local labour and materials
in order to unlock higher levels of economic activity and
employment in communities where the projects are being
implemented and be promoted.

365. The Emergency Roads Rehabilitation Programme continues to

provide a whole of Government approach to project execution
as it provides strong oversight and coordination at all levels.

366. Government will also continue to engage the private sector

for possible concessioning of some roads through structured
finance, especially those generating sufficient cashflows and
whose scale of work can be sufficiently funded through tolling.

367. Following the successful designing of the widening of sharp

curves and construction of climbing lanes for the Harare-
Chirundu highway, the country is expected to receive an
additional grant of JPY2,389 million (approximately US$17.44

127
 million), with US$5 million projected to be disbursed in 2024 to
commence the construction process.

Toll Gates

368. To ensure road users directly finance the road network, and
hence, reduce the burden on the fiscus, additional toll gates
will be constructed on some strategic locations on our road
network.

369. In this regard, through the road fund a total of Z$129.6 billion
has been set aside towards construction and upgrading of toll
gates as indicated in the Table below.

Table 33: Toll Gates to be Constructed and Upgraded

Name of Toll Gate Programmed Works
Chivhu Highway Construction of new toll gate
Karoi Construction of new toll gate
Ngundu Construction of new toll gate
Skyline Upgrading of toll gate
Shamva Upgrading of toll gate
Dema Upgrading of toll gate
Inkomo Upgrading of toll gate
Esigodini Upgrading of toll gate
Eskbank Upgrading of toll gate
Lionsden Upgrading of toll gate
Flamingo Upgrading of toll gate
Norton Upgrading of toll gate

Sinking Fund

370. The Budget’s capacity to scale up funding for the construction,

upgrading and maintenance of the country’s infrastructure has

128
 been limited, on account of other competing demands on the
fiscus.

371. Beyond reliance on traditional tax revenues, the 2024 Budget

proposes to expand the range of financial instruments that
can be channelled towards critical infrastructure by setting
up a dedicated Sinking Fund to support execution of projects.
Government will ring fence the incremental income from road
user charges, among other tax revenue streams, to the Fund.

372. The Fund will be used to crowd in private sector resources, with
repayments securitised through the fund’s income streams,
thereby providing the most effective form of development
financing.

373. Treasury will work with relevant stakeholders in developing

the modalities of the Sinking Fund.

374. In addition, Government is engaging Africa 50 to explore

asset recycling of projects as a form of infrastructure financing
mechanism. This will allow Government to channel fiscal
resources to other high priority infrastructure projects, critical
for sustainable economic development.

129
 Rail

375. Improved rail services support economic growth by lowering

transportation costs, particularly for the mining and agriculture
sectors, which require bulk transportation of raw materials
and finished products. Investments in our rail network will
also arrest further deterioration of road infrastructure due to
haulage trucks as well as abnormal loading.

376. However, the country’s rail system is becoming a bottleneck

to the seamless railway service within the region, given its
interconnectedness with other national networks along the
Beira/Maputo corridors to Mozambican ports and North–South
corridor linking countries in the north and ports in the south
such as Durban and Richards Bay in South Africa.

377. The 2024 Budget will, therefore, support renewed efforts to

capitalise the NRZ with an amount of Z$56.4 billion having
been set aside to meet urgent rehabilitation needs.

378. Government is also supporting the NRZ recapitalisation

roadmap through access of lines of credit for the procurement
of locomotives, wagons, track infrastructure and signalling
equipment. The NRZ is also expected to engage the private
sector users of the railway system on options for joint ventures.

130
 Airports

379. The growing list of airlines flying into the country which now
stands at 19, provides clear testimony to the success of
Government’s interventions in the aviation sub-sector.

380. Focus going forward is to ensure compliance with the dictates

of the International Civil Aviation Organisation, especially on
safety requirements, as well as to continuously attract more
air traffic to the county.

R. G. Mugabe International Airport

381. Furthermore, complementary investments will be initiated to

enhance service at all airports by providing services such as
uplift kitchens. The airports upgrading programme will also be
extended to smaller strategic airports such as Kariba, Grand
Reef, Buffalo Range, Charles Prince Airport, among others.

131
382. In this regard, the 2024 Budget will allocate resources for
the construction of the control tower at J. M. Nkomo Airport
in Bulawayo and refurbishment and construction of air ports
uplift kitchens.

Energy

383. Notwithstanding enhanced domestic electricity generation

following the commissioning of Hwange 7 & 8, as well as
entrants of new solar energy by Independent Power Producers,
power supply deficits have continued, mainly due to depressed
generation capacity of existing plants, as a result of obsolete
equipment at thermal power stations, low water levels at
Kariba dam and aged transmission networks, including ZESA
technical and non-technical system losses of power.

384. The forced outages and limited costly imports from the region
are seriously undermining economic activity, particularly for
energy intensive sectors of mining and agriculture, with costs
of loadshedding on the economy estimated at 6.1% of GDP.

385. Through the Government Implementation Agreement for

all solar IPP projects, the private sector has been provided
with risk mitigation provisions that will enhance bankability of
projects. Furthermore, Government has encouraged off-grid

132
 renewable energy investments, private sector power-to-mine
investments and direct importation from the region by high
energy consumers that will help free up energy supply to other
sectors.

386. In addition, capacity building measures will be implemented to

strengthen technical planning and coordination of the sector,
including development of a least cost Systems Development
Plan, that also promotes transition to clean energy sources.

387. Government, through the Rural Electrification Fund will extend

access of electricity to unserved areas, targeting schools,
health centres, business, Government offices, as well as
community programmes such as irrigation schemes.

388. The sector is expected to benefit from US$9.8 million of

development assistance in 2024 towards improving the
distribution and transmission of power, solar energy projects
and the promotion of green energy sources.

389. Of this amount, US$3.6 million is projected to be disbursed

towards technical services and supervision consultancy and
spillway gates refurbishment under the Multinational Kariba
Dam Rehabilitation Project.

133
390. An amount of US$1.3 million is projected to be disbursed in
2024 towards Sino-hydro performance guarantee, completion
of the outstanding social upliftment works at Sadoma Clinic,
Slaughter Primary School and Karoi Old People’s Home and
social upliftment activities under the Alaska Karoi Power
Transmission Reinforcement Project.

391. To facilitate investments in energy generation, enhancing the

transmission and distribution network, as well as sustaining
the rural electrification programme, the Ministry of Energy and
Power Development has been allocated Z$90.1 billion.

Roadmap Towards Electricity Self Sufficiency

392. The country’s current local generating capacity stands at

1 280MW, against an average local demand of 1 850MW,
resulting in a deficit of up to 500MW. To address the power
supply challenge, Government has approved a Roadmap
Towards Electricity Self Sufficiency that embraces private
sector investment in renewable sources such as solar and
hydro, implementation of cost reflective tariffs and governance
reforms at ZESA and its subsidiaries.

393. The short-term interventions include importation of electricity

from neighbouring countries of between 210MW and

134
 500MW, together with decommissioning and repurposing of
small thermal power stations to reduce operational costs at
ZESA Holdings. In addition, Government is in the process
of restructuring of ZESA Holdings to improve operational
efficiency, which is expected to be completed during 2024.

394. Medium-term interventions include working on reducing

system losses and savings by rehabilitation and refurbishment
of the transmission and distribution network, as well as rolling
out of prepaid and smart metres on all electricity consumers.

395. Other immediate interventions include the commissioning of

small hydro and solar power stations, which are expected to
generate additional capacity of about 90MW in 2024 through
IPPs. In 2025, an additional 296 MW is expected to come on
stream mostly from solar, hydro and coal projects.

396. To facilitate these investments in energy by IPPs, Treasury is

issuing Government Support Agreements for the projects to
be bankable.

397. In addition, Government has allowed ZESA Holdings to

gradually review tariffs towards cost recovery level, which
is expected to enhance its balance sheet and promote IPPs
investment in the sector.

135
398. Government will also secure funding to repower Hwange
Units 1 to 6 and other new investments such as Batoka hydro
project (2 400MW) and Devils Gorge among other renewable
energy projects.

Digital Economy

399. Consistent with our NDS1 objective of attaining a digitally

enabled economy, the Budget will support interventions that
harness and promote the use of ICT services across the whole
spectrum of the economy.

400. In furtherance of the above, Government will develop a

digitalisation roadmap that includes the development of
an appropriate institutional framework to drive our ICT
interventions and upscale the usage of ICT services in the
country. Regarding the public sector, the framework seeks to
harmonise and standardise procurement of ICT equipment, as
well as integration of the various systems in order to provide
seamless public services in a cost-effective manner.

401. Enhancing use, coverage and access of ICT services in the

economy will unlock the demographic dividend by empowering
the youth to engage in productive activities.

136
402. Focus will therefore be on extension of the broadband
infrastructure, investing in last mile connectivity and
complementary facilities, consolidating the implementation of
smart government systems and e-government programmes,
among other activities that improve access to ICT services
especially to the vulnerable groups in society.

403. In this regard, an amount of Z$185.3 billion has been allocated

to the Ministry of Information Communication Technology,
Postal and Courier Services.

E-Government Programme

404. Implementation of e-government programmes provides an

opportunity to enhance efficiencies in the provision of public
services and in reducing turnaround times.

405. Given the current momentum in the implementation of this

programme, which has seen a number of public services now
being accessed on line, the Budget will support investments in
digital infrastructure and systems.

Zimbabwe Digital Migration

406. Zimbabwe Digital Migration Project, an obligation under

International Telecommunications Union is targeting to

137
 construct 48 transmission sites of which 18 have already been
done.

407. The focus is on completing the remaining 30 sites over the

next 3 years. Once completed, this will result in increased
capacity to allocate more frequencies for radio and television
channels, improved quality of sound and vision of both radio
and television and release of extra spectrum bank for use by
telecommunications industry.

408. In this regard, the 2024 Budget has made a provision towards
advancing the above interventions.

409. In view of the scope of work to be done and the time lag to
complete the works, it will be necessary to mobilise additional
resources from the auctioning of the spectrum created through
the digitalisation programme.

High Performance Computing Phase II

410. The High-Performance Computing Phase II is now almost

complete, with all outstanding works, including the installation
of equipment and finishings on the building, targeted for
completion during 2024.

138
411. Once complete, the intervention will result in increased
efficiencies in the processing of big data in all our institutions of
higher learning, industries, as well as Ministries, Departments
and Agencies.

ICT Lab Per School

412. In order to complement achievements made so far wherein

1,300 schools have benefited from the ICT Lab Per School
Programme, the 2024 National Budget has set aside resources
targeting the enhancement of e-learning in various schools
across the country.

Universal Service Fund

413. The Universal Services Fund is targeting construction of 7 base

station sites, 15 community information centres, deployment
of tele-medicine at 158 health centres, as well as training of
180 people with disabilities in 6 provinces in the use of ICT,
during 2024.

Housing

414. Interventions in the housing sector will target delivery of

affordable quality housing and to the achievement of the NDS1
target of delivering 1.2 million housing units by 2025.

139
415. Growth in the sector has remained strong, sustained by both
private and Government investments. Renewed efforts will be
made to provide on and offsite infrastructure, improving facilities
in informal settlements, access to finance by land developers,
private investors and households, as well as addressing the
cumbersome land delivery process and provision of title to
beneficiaries.

Kuwadzana
KuwadzanaFBC
FBCHousing
HousingProject
Project

423. Government will work closely with the private sector and other stakeholders to put in place
416. Government will work closely with the private sector and
appropriate packages and incentives that allow for enhanced financing and implementation
other
of stakeholders
targeted to putThis
housing delivery projects. in includes
place repeal
appropriate packages
of archaic laws and
and enforcement
incentives
of bylaws in the that allow
housing forvalue
delivery enhanced financing
chain, given instances ofand implementation
malpractice especially from
private sector developers. This will also attract private investments in the sector, such as
of targeted housing delivery projects. This includes repeal
pension funds.
of archaic laws and enforcement of by-laws in the housing
delivery
424. In value
addition, the chain,
programme given
towards instances
regularisation of malpractice
and sanitisation especially
of informal settlements will
from
be private
expedited sector
and fast tracked developers.
to bring sanity andThis
order towill also attract
the housing market, asprivate
we build
back better. The already
investments in theadopted framework
sector, such on
asdensification
pensionwill be enforced at all new
funds.
projects in order to realise full potential of available land and maximise use of complementary
services such as water, sewer, electricity and roads.
140
425. The current housing facilities and housing delivery models for public servants will be
restructured to ensure that such facilities add value to housing development and do not cause
417. In addition, the programme towards regularisation and
sanitisation of informal settlements will be expedited and
fast tracked to bring sanity and order to the housing market,
as we build back better. The already adopted framework on
densification will be enforced at all new projects in order to
realise full potential of available land and maximise use of
complementary services such as water, sewer, electricity and
roads.

418. The current housing facilities and housing delivery models

for public servants will be restructured to ensure that such
facilities add value to housing development and do not cause
distortions in the housing market.

419. In pursuit of our vision of well-planned and well-governed

settlements, Government will continue to review current
housing policies in the allocation of state land to correct
current anomalies and compel all local authorities to prepare
comprehensive housing master plans critical for fostering long-
term visioning of housing development and guide investments.

420. A total amount of Z$353 billion has been allocated to the

Ministry of National Housing and Social Amenities to facilitate
construction of houses to the general public, civil servants, as
well as institutional accommodation.

141
 427. A total amount of Z$353 billion has been allocated to the Ministry of National Housing and
Institutional Housing
Social Amenities to facilitate construction of houses to the general public, civil servants, as

421. well as institutional accommodation.

Provision of institutional housing, remains critical in catering
for the expansion in the public sector, as well as to provide
Institutional Housing
conducive working environments.
428. Provision of institutional housing, remains critical in catering for the expansion in the public
422. sector,
However,as well asnoting
to providecapacity inadequacies
conducive working environments. within the housing
delivery value chain that have undermined the pace of
429. However, noting capacity inadequacies within the housing delivery value chain that have
execution of some of the targeted projects, bold measures
undermined the pace of execution of some of the targeted projects, bold measures will be put
will be put in place to ensure that our delivery models and
in place to ensure that our delivery models and architecture are effective and efficient.
architecture are effective and efficient.

Zimbabwe ForeignServices
Zimbabwe Foreign Services Institute
Institute

430. In line with the above, the 2024 Budget will prioritise the capacitation of building brigades
423. In line with the above, the 2024 Budget will prioritise the
under the Zimbabwe Prison and Correctional Services, Zimbabwe National Army, Ministry of
capacitation of building brigades under the Zimbabwe
Local Government, Public Works and Ministry of Higher and Tertiary Education and the Rural
Prison and
Infrastructure and Correctional Services,
Development Agency with tools ofZimbabwe National
trade, among other Army,
requirements, so
Ministry
that of aLocal
they play Government,
significant Public and
role in the rehabilitation Works and Ministry
construction of
of institutional
accommodation.

14293
 Higher and Tertiary Education and the Rural Infrastructure
and Development Agency with tools of trade, among other
requirements, so that they play a significant role in the
rehabilitation and construction of institutional accommodation.

424. Furthermore, an Enhanced Maintenance Programme will be

put in place where resources will be ringfenced to rehabilitate
Government buildings in critical need of repair.

425. In terms of the housing development programme the

2024 Budget is providing Z$1 trillion for the construction of
institutional accommodation targeting mainly completion of
current ongoing projects as indicated in the Table below.

Table 34: Targeted Housing Delivery Projects

Project Z$
Rehabilitation and Upgrading of State Residences 14,715,000,000
Car park, civil works for the new Parliament Building 8,300,950,000
Construction and Rehabilitation of ZNA & Air Force Institutional Buildings 122,962,000,000
Upgrading of Border Posts 63,887,000,000
Construction and upgrading of Chanceries and Embassies 80,724,000,000
Government Composite Buildings Rehabilitation & Construction 45,367,749,000
Upgrading of National Museums 6,394,000,000
Upgrading of Youth & Women Training Centres 10,024,094,000
Upgrading of Immigration facilities 16,700,000,000
Construction of Registry Offices 454,999,000,000
Upgrading of ZRP Infrastructure 16,799,559,000
Upgrading of ZPCS Infrastructure 51,112,000,000
Residential accommodation including regularisation of dysfunctional settle- 62,000,000,000
ments
Courts Facilities 53,550,000,000
Upgrading of sporting facilities 24,500,000,000
Social Welfare - Rehabilitation centres 17,000,000,000
Total 1,049,035,352,000

Residential Accommodation

143
426. It is paramount that our housing interventions also target
provision of low cost and affordable housing for our citizens
especially the youth, among other marginalised groups of
society.

427. In this regard, under our 2024 housing interventions, priority

has also been accorded towards construction of low-cost
houses such as Kasese in Kariba, Crowlands in Chinhoyi and
Empumalanga in Hwange and Flats in Beitbridge.

428. In support of the above projects, Z$62 billion has been set
aside in the 2024 Budget.

Land Use and Spatial Planning

429. The absence of detailed master plans and related documentation

has undermined housing development and constrained the
utilisation of available land for settlements. This covers new
cities and emerging centres of economic activities such as
dam sites and borders, among others.

430. In this regard, the 2024 Budget will prioritise the development
of master and spatial plans as indicated in the Table below.

144
 Table 35: Targeted Master and Spatial Development Plans
Master Plan Details
Masvingo South Regional Plan Preparation of a Regional Plan spanning from Masvingo Town to
Chiredzi Town including settlements and economic activity centres
in-between.
Gwayi-Shangani and Environs Development of planning policies and proposal for the dam and its
Master Plan environs
Semwa Dam and Environs Development of planning policies and proposal for the dam and its
Master Plan environs/hinterland
Marovanyati Dam and Environs Development of planning policies and proposal for the dam and its
Master Plan environs
Tugwi-Mukosi and Environs Approval of the Master plan in terms of The Regional, Town and
Master Plan Country Planning Act (Chapter 29:12)
Civil Service Housing Facilities

431. Various housing facilities availed by Government to public

servants have provided impetus to the goal of providing
decent and appropriate accommodation to their families,
commensurate with their positions.

432. In this regard, the Senior Officers Housing Facility will, during
2024 extend support to the remaining categories, mainly
targeting the Chief Directors and equivalent grades.

433. Furthermore, Government will develop a tailor-made facility

for Directors and Deputy Directors within the public service
and modalities will be announced once due consultations
have been concluded.

434. The above interventions will be structured in collaboration with

the financial sector and other stakeholders to ensure that they

145
 add to the growth of the country’s housing stock, with priority
being given to construction of Government compounds.

435. The General Civil Service Housing Scheme, which caters for
other categories of civil servants will be further capitalised
during 2024.

Water and Sanitation

436. Increased incidences of drought points to the need to upscale

investments in the water sector as part of measures to guarantee
water supply for domestic, industrial and agricultural use.

437. Whilst Government continues to make strides in the provision

of water and sanitation services, coverage levels are still below
acceptable levels resulting in the re-emergence of preventable
water borne diseases such as cholera. The absence of reliable
water supplies for industrial use is also putting a premium on
economic activities given the resultant increased cost from
alternative options.

438. To fully maximise on investments in the sector, the integrated

approach to water development has been embraced by
Government, which ensures dam construction, conveyancing
and complementary investments such as irrigation development
are undertaken simultaneously.

146
439. In this regard, the strategic priorities during 2024 in the water
and sanitation sector will include the following: -

• Rehabilitation and maintenance of existing water and

sanitation infrastructure such as reticulation systems,
treatment plants, distribution systems and water bodies;
• Construction of additional water bodies targeting completion
of ongoing dam projects;
• Capacitation of local authorities, ZINWA and other agencies
involved in water resource management to ensure that
service provision is enhanced; and
• Improving access to water and sanitation services in the
rural areas through drilling of boreholes and the construction
and rehabilitation of water supply schemes;

440. Under the 2024 National Budget overall support towards dam
construction projects amounts to Z$389 billion with priority being
on the completion of Gwayi-Shangani dam and pipeline with the
dam now at the advanced stage of completion. Other targeted
dams include Kunzvi dam with the associated treatment plant
and conveyancing pipeline, Ziminya, Tuli-Manyange, Bindura,
Semwa, Silverstroom and Vungu dams. Government will also
support provision of requisite infrastructure for new impactful
investments, such as Manhize project.

147
 dam with the associated treatment plant and conveyancing pipeline, Ziminya, Tuli-Manyange,
Bindura, Semwa, Silverstroom and Vungu dams. Government will also support provision of
requisite infrastructure for new impactful investments, such as Manhize project.

Gwayi Shangani dam

448. The support includes construction of the pipeline connecting Muchekeranwa and Wenimbi
441. dams,
Theinsupport includes
order to augment construction
water supply of the
to Marondera town pipeline
as well connecting
as Ruwa and Chitungwiza.

Muchekeranwa and Wenimbi dams, in order to augment water

449. Furthermore, resources have been set aside for the construction, rehabilitation and upgrading
supply to Marondera town as well as Ruwa and Chitungwiza.
of water supply infrastructure at identified small towns and growth points.

442. Furthermore, resources have been set aside for the

450. In addition, Z$204.9 billion has been set aside for borehole rehabilitation and drilling
construction,
programmes rehabilitation
through ZINWA and further
and RIDA, including upgrading of ofwater
procurement supply
drilling rigs. These
infrastructure
interventions at identified
will be complemented small towns
by investments and
under the growth
Presidential points.
Rural Development
Programme, whilst local authorities are expected to identify water supply and sanitation

443. projects to be supported through the Inter-Governmental Fiscal Transfers allocations.

In addition, Z$204.9 billion has been set aside for borehole
rehabilitation and drilling programmes through ZINWA and
451. The sector also is expected to receive development assistance amounting to US$7.9 million
inRIDA, including
2024 towards further
sustainable, procurement
climate resilient of drilling
and scalable WASH rigs.
services, as well asThese
support
interventions
from will ofbe
the People’s Republic complemented
China who have pledged to by investments
drill 300 boreholes in theunder
districts

thewere
that Presidential Rural
affected by Cyclone Idai. Development Programme, whilst local
97

148
 authorities are expected to identify water supply and sanitation
projects to be supported through the Inter-Governmental Fiscal
Transfers allocations.

444. The sector also is expected to receive development assistance

amounting to US$7.9 million in 2024 towards sustainable,
climate resilient and scalable WASH services, as well as
support from the People’s Republic of China who have pledged
to drill 300 boreholes in the districts that were affected by
Cyclone Idai.

Improving Water Supply in Small Towns and Growth Points

445. The continued growth in population for people living in small

towns and growth points is exerting strain on current water
and sanitation services whilst in some new settlements there
are no available services. It is therefore, critical that resources
be channelled towards interventions aimed at increasing the
current capacities as well as allow expansion in underserviced
settlements as part of our measures to stimulate economic
activity and improved living standards of communities living in
these locations.

446. In line with the above thrust, the 2024 National Budget is setting
aside resources amounting to Z$8.6 billion for the construction,

149
 rehabilitation and upgrading of water supply infrastructure in
identified small towns and growth points.

Improving Access to Water and Sanitation Services

447. Whilst Government has made commendable progress with

regards to financing of water and sanitation services in rural
areas which has enhanced improved coverage and access
levels, more interventions are required to comply with the
dictates of internationally acceptable thresholds.

448. Additionally, the recurrence of droughts, and other climate

related impacts necessitates that we climatic change proof our
rural water supply systems to ensure security and sustainable
access as well as empowerment of rural communities.

449. In furtherance of this strategic objective, our 2024 Budget

interventions will be centred on supporting borehole
rehabilitation and drilling programmes through ZINWA and
RIDA, including further procurement of drilling rigs. A total of
Z$204.9 billion has been set aside for implementation of these
programmes.

450. The above will be complemented through other interventions

under the Presidential Rural Development Programme whilst

150
 local authorities are also expected to identify water supply
and sanitation projects to be supported through the Inter-
Governmental Fiscal Transfers allocations.

451. It is therefore, imperative that the relevant stakeholders work

collaboratively in planning and implementation of rural water
supply and sanitation projects to avoid duplication as well as
ensure impactful use of available resources and capacities.

Youth, Sport, Arts and Culture

452. Government continues to create a conducive environment

for full participation of our youths, guiding them to define the
kind of society they want, as well as shaping the future they
want to leave behind. Time is still on their side, and they are
well endowed with energy, imagination and enthusiasm to fulfil
their dreams.

453. Various Government interventions, particularly in health and

education, among others, seek to harness the demographic
youth dividend and the potential in our youth by providing them
with life skills that will ensure that they can navigate the global
environment that is increasingly uncertain and complex.

454. In this regard, an amount of Z$210 billion has been set

aside for the Ministry of Youth Empowerment, Development

151
 and Vocational Training to support youths development and
empowerment programmes during 2024. This amount covers
refurbishing and retooling of Vocational Training Centres across
all provinces to enable education and skills development for
the youth, as well as combating of drug and substance abuse.

455. In addition, this support also covers the national youth service
programme to nurture young people into responsible citizens
with values of patriotism, discipline, and Hunhu/Ubuntu.

456. Sport, arts and cultural activities enable the youths to

showcase their talents and increase their incomes, whilst also
facilitating the building of strong and resilient communities.
The Budget will support collaboration with the private sector in
interventions that will rehabilitate and renovate major existing
sport facilities.

457. Therefore, the 2024 National Budget proposes to allocate

Z$136.2 billion to the Ministry of Sports, Recreation, Arts and
Culture for the rehabilitation of major stadia, as well as for
the construction of multipurpose facilities for sport, recreation
and cultural creative industries within communities that will
promote social mixing and harmony.

152
458. Regarding productive economic activities, support for
innovation hubs at all state universities will be upscaled to
promote the development of new skills and ideas, as well
as their commercialisation. This will be complemented by
other interventions to recapitalise empowerment institutions
such as the EmpowerBank, Small and Medium Enterprises
Development Corporation (SMEDCO) that support
empowerment programmes for the youths.

459. The Prescribed Asset Status will be extended to insurance

and pensions institutions that support capitalisation of these
empowerment institutions.

Drug Abuse

460. The scourge of drug and substance abuse, especially among

youths is having serious ramifications of the socio-economic
development of the country, and has the potential to undermine
the realisation of Vision 2030. It has also resulted in family
disintegration, high crime rates and low productivity.

461. The issue has already been declared a National Disaster and
a Taskforce has been set up to address the issue holistically.

462. The Taskforce has developed and is implementing a number

of strategies to reverse the trend, with particular focus on the

153
 provision of requisite psychosocial support infrastructure,
including the construction, upgrading and refurbishment of
drug and substance abuse rehabilitation centres. This will also
include massive anti-drug and substance abuse awareness
campaigns throughout the country.

463. It has also become imperative for Government to work closely

with community leaders and family systems in formulation and
implementation of prevention and mitigation measures.

464. The security enforcement agencies are undertaking a blitz

to halt the illegal importation, movement and proliferation of
drugs in the country.

465. Legislation is being reviewed to provide for stiffer penalties for

convicted drug peddlers and users in order to decisively deal
with the scourge.

466. An amount of Z$30 billion has been set aside to fight drug and
substance abuse through the capacitation and construction
of additional rehabilitation centres and support awareness
campaigns, as well as capacitation of health professionals.

467. These interventions will be complemented by critical auxiliary

measures meant to empower and support the youths.

154
 Women, Gender Equity, SMEs and War Veterans

468. Government is committed to empower the marginalised

sections of society, including women and SMEs. Hence,
Government has been advocating for more women to take up
managerial positions, with Government leading by example by
enacting a policy requiring the employment of women in senior
level positions in Ministries, Departments and Agencies.

469. In addition, Government notes the increasing contribution of

SMEs to GDP. In this regard, efforts are underway to provide
a conducive environment to facilitate the participation of SMEs
in the various productive sector value chains such as agro-
processing, construction, retail and manufacturing, among
others, as part of the economic transformation agenda.

470. As part of the empowerment measures, the 2024 National

Budget seeks to capacitate women, the youths and small
businesses by recapitalisation of the following Government
empowerment financial institutions:

• Zimbabwe Women’s Microfinance Bank, Z$10 billion;

• Empower Bank, Z$13.1 billion;
• Community Development Fund, Z$5.2 billion;
• Small and Medium Enterprises Development Corporation
(SMEDCO), Z$10 billion; and
• Women Development Fund, Z$11.4 billion.

155
471. In addition, resources have been set aside for the construction
of the necessary infrastructure including Vendor Marts and
Market Stalls. Government will also promote private sector
participation in provision of infrastructure through provision of
necessary incentives.

Gender Budgeting for Inclusive and Sustainable Development

472. In recognition of the need to step up advancement of gender

equality, as well as empowerment of women and youth in order
to promote inclusive and sustainable economic growth and
development, Government availed resources amounting to
Z$1.8 trillion during the period January to September 2023 in
support of gender sensitives programmes mainly towards health,
education, social welfare and social protection programmes.

473. However, the gender budgeting process continue to be

constrained due to non-availability of sex disaggregated data
and limited capacity in gender budgeting across sectors, with
main sectors recording low gender budget expenditures.

474. In 2024, Government targets to scale up support towards

gender sensitive programmes with the objective to achieve
SDGs 3, 4, 5 and 10.

156
475. Details regarding the specific gender sensitive programmes
receiving support through the fiscus are contained in the
accompanying 2024 Gender Budget Statement.

Persons with Disabilities

476. Government has made great strides in recognising the rights

of persons with disabilities by creating the post of Director
responsible for Gender, Wellness and Inclusivity, which deals
with issues of disability in every Ministry, as well as providing
incentives such as rebate of duty on equipment used by the
physically challenged and assistive devices (wheelchairs,
crutches, artificial limbs, spectacles).

477. To meet the needs of this special group, Government will

continue to prioritise funding of social sectors to ensure
inclusive education, healthcare and other social protection
programmes in order to reduce the burden on persons with
disabilities.

478. In the long term, the thrust will be to move away from
treating disability issues as humanitarian, to empowerment
by embracing programmes that provide for skills and
entrepreneurial development. This will enable the targeted
group to get employed and to start income generating projects.

157
 War Veterans

479. The Zimbabwe we cherish today, is the outcome of a protracted

War of Liberation whose many gallant sons and daughters
perished during the armed struggle. Various categories of
Veterans of the Liberation Struggle sacrificed everything they
had, including their lives to liberate our motherland.

480. To honour their sacrifice, Government will continue to support

their welfare and empowerment initiatives to enhance their
livelihoods. In this regard, Government will accelerate
the finalisation the vetting of War Collaborators and Non-
Combatant Cadres and the subsequent determination of their
benefits.

481. The recent establishment of a dedicated Ministry for War

Veterans, signifies Government’s commitment to address the
welfare and economic empowerment needs of Veterans of the
Liberation Struggle, Heroes Dependants and War Victims.

482. In this regard, the 2024 National Budget allocates Z$221.8

billion towards their monetary and non-monetary benefits. The
resources will go towards their monthly gratuities, medical
benefits, funeral grants, school fees for their dependents, mop
up vetting exercise and capacitation of provincial and district
structures.

158
483. In addition, Government will conclude the transfer of mining
assets to the Ministry of Veterans of the Liberation Struggle
in 2024. The assets will be housed under a special purpose
vehicle, whose operations will grow the Fund, thereby reducing
dependence on the fiscus.

Human Capital Development and Well-Being

484. Interventions in core social services of education, health as well

as timely social protection for the vulnerable, will ensure that
every child has an opportunity to maximise its human capital
potential and contribution to society. Investments in these
sectors will accelerate progress toward National Development
Goals outlined in NDS1 and Vision 2030.

485. To support the required economic transformation, Government

has reviewed and aligned the education curricula, in line with
global and technological trends, and provided the necessary
infrastructure to nature and translate knowledge generated
through the education system, into goods and services that
contribute towards economic growth and development.

486. Similarly, recovery of the health system is underway and will

be sustained through the Budget, focusing on the rehabilitation
and expansion of health infrastructure, improved availability

159
 of drugs, medical supplies and equipment, as well as the
requisite personnel.

487. In addition, upscaling social protection spending cushions the

poor and vulnerable groups and ensures that the vulnerable
build resilience to shocks.

488. To improve on both the coverage and quality of social services,

as well as ensure the limited public resources are allocated to
those service delivery programmes which maximise benefits
to the community.

489. The above allocations will ensure the health and education
budgets are well within the continental commitments such
as the Abuja Declaration target of 15% of total expenditures
for health and the Dakar Framework of 2000 for Action on
Education for All, that requires a minimum threshold of 12% of
expenditures.

490. To ensure that targeted programmes in the social sector

are implemented effectively, Treasury will prioritise cash
disbursements to this sector during 2024.

Health

491. The 2024 Budget allocation of Z$6,3 trillion seeks to consolidate

recovery of public health sector services, across all levels of

160
 health care, through provision of the requisite tools of trade
such as adequate working space, manpower, drugs and
medical supplies across the value chain. Universal access to
quality health care will fundamentally improve health outcomes
and reduce the need to seek medical treatment outside our
borders.

492. On health infrastructure, the budget will prioritise upgrading,

equipping and re-equipping of health facilities with modern
medical equipment, including capacitation of the ambulance
services, in order to strengthen the referral system. An additional
amount has been set aside for construction and procurement
of accommodation facilities close to health institutions, mainly
targeting critical health staff.

493. In this regard, an amount of Z$2.5 trillion has been allocated

towards the following broad interventions: -

• Construction & rehabilitation of hospitals, clinics and health

centres Z$1.4 trillion;
• Procurement of medical equipment Z$960 billion;
• Procurement of 100 ambulances Z$52.8 billion; and
• Provision of staff accommodation Z$110.3 billion.

494. The sector is also expected to benefit from Development

Partners’ assistance projected at US$436 million in 2024 to

161
 continue supporting maternal, new born, child adolescent &
reproductive health, HIV/AIDS, Tuberculosis (TB) & malaria
prevention programmes, and strengthening of the health
delivery systems.

495. The country was allocated approximately US$500 million under

the Global Fund grant cycle 7 (2024 -2026) with US$147.6
million set to be disbursed in 2024.

Construction and Rehabilitation of Health Facilities

496. Targeted interventions through the budget will be aimed at

mostly providing primary health care through the construction
and rehabilitation of 50 clinics mainly targeting the underserviced
areas.

497. Attention will also be towards ensuring that the referral system
is reinvigorated in order to decongest the next level of health
care such as provincial, quaternary and quinary hospitals.

498. The table below indicates the priority projects to be implemented

during the year 2024.

162
 Table 36: Targeted Health Infrastructure Projects
Name of Institution Targeted works (Z$B)
Rural Health Centres Construction & rehabilitation of 51 rural 479
clinics
Districts hospitals Upgrading and rehabilitation of 51 existing 158.7
facilities
Provincial hospitals Upgrading of existing facilities 350.8
Central hospitals Upgrading of existing facilities 366
Medical Equipment Procurement of Medical office Equipment, 960
Laboratory & Research equipment
Construction of Construction of 7X16 block of flats 110.3
Block of Flats
Ambulance 100 ambulances 52.8
Total 2.478

499. Furthermore, the ongoing construction of Government’s 30

health care centres, being implemented by NMS infrastructure
Limited of the United Kingdom is focusing on delivering
facilities equipped with modern state of the art equipment.
The programme is targeting the under serviced areas in the
country.

500. Already, Stoneridge in Harare and Cowdray Park healthcare

centres have been completed and handed over to the
Government, whilst Mataga in Mberengwa and Runyararo
in Chimanimani will be completed by the end of the year.
Construction of an additional four health care centres under
Phase II of the programme will commence in early 2024.

501. To this effect, a provisional budget allocation of Z$415 billion

is being set aside towards the planned works.

163
502. With regards to Lupane Provincial hospital, a total of Z$308
billion has been provided towards completion of ongoing
works on the administration block, eye & dental clinic, theatre,
labour ward, antenatal, postnatal, laundry, mortuary, central
stores, pharmacy, casualty, paediatric, maternity admission,
outpatient department, staff accommodation and kitchen,
among others.

503. Complementing Government support are various development

partners who have made commitments towards implementation
of targeted health programmes.

Procurement of Medical Equipment and Ambulances

504. In the face of increased global pandemics, the demand and

supply of modern and advanced medical equipment has also
being given a priority in the health system for safety, effective
prevention, diagnosis, treatment and rehabilitation of illness
and diseases.

505. In an endeavour to ensure that the country’s health institutions

are provided with critical medical equipment, Government,
through the budget is allocating Z$960 billion for the procurement
of medical equipment mainly targeting the following machines
for open heart surgery, laboratory, radiology, anaesthetic, ultra
sound scan, among others.

164
506. As a lifesaving solution towards reduction in avoidable
deaths related to maternal, road traffic accident causalities
among other emergencies, Government is set to procure 100
additional ambulances aimed to ensure that patients receive
pre-hospital care and reach the nearest referral hospital on
time.

507. Government remains focused towards the provision of standard

health care and quality of life for its citizens, specifically targeting
health promotion to prevention, treatment, rehabilitation and
palliative care.

Education

508. According to Gary Becker, an American economist who

received the 1992 Nobel Memorial Prize in Economic
Sciences, “Expenditure on education and skills development
is an investment in human capital, which is a key driver of
economic progress and social mobility.”

509. Given the centrality of education in the development of the

country, the 2024 National Budget has prioritised programmes
that are critical to the attainment of SDG 4.

165
 Primary and Secondary Education

510. The overall Budget support to the Ministry of Primary and

Secondary of Z$8 trillion prioritises provision of quality and
easy access to education and other learning opportunities for
children.

511. Therefore, Z$231,8 billion has been set aside for provision of
teaching and learning materials, as well as teacher capacitation
at primary and secondary education level. In addition, support
will be extended to the Continuous Assessment of Learning
Activities (CALA) in schools, which requires learners to
demonstrate their knowledge, understanding and proficiency
as well as make use of digital devices such as cell phones and
laptops for research.

512. With regard to infrastructure, the Budget has provided Z$88.7

billion for construction, upgrading, rehabilitation and expansion
of schools, especially in marginalised areas, using modern
technologies that is faster and cheaper.

513. To ensure timeous delivery of the infrastructure the current

model will be restructured to embrace private contractors
and other stakeholders, including utilising other arms of
Government with capacity to deliver in this respect.

166
514. Already, Government is in the process of capacitating the Rural
Infrastructure Development Agency to construct 20 schools
across the country during 2024.

515. Government is also engaging the OPEC Fund for International

Development towards a co-financing facility of US$40 million
towards construction of schools and provision of necessary
equipment.

516. In 2024, the sector is projected to receive US$25 million

development assistance to complement Government’s efforts
to continue strengthening the education systems in order to
improve access to quality, equitable and inclusive education.

Provision of Sanitary Wear

517. To ensure children stay in school, by upholding learner

welfare, Z$15.5 billion has been set aside for the procurement
of sanitary wear for disadvantaged pupils.

518. Government will also train healthcare management committees

to enhance effectiveness in the administration and distribution
of the sanitary wear.

167
 Higher and Tertiary Education

519. The Budget allocation of Z$2.4 trillion seeks to support

implementation of Education 5.0 under the higher and tertiary
education which promotes a knowledge driven economy that
is sustained by innovation, industrialisation and modernisation
targeting the following:

• Establishment of new teaching and learning facilities;

• Construction of innovation, science and technology
infrastructure;
• Upscaling of open distance and blended education that
reduces education costs affordable and accessible;
• Upscaling uptake and application of STEM subjects;
• Strengthening strategic partnerships with industry; and
• Focus on Agro-innovation value chains, minerals and
mining value chains and advanced technologies utilisation.

520. On infrastructure, focus will be on construction of innovation

and industrial parks, completing of at least one ongoing project
at established universities, whilst rehabilitating and upgrading
infrastructure at new universities.

521. Attention will also be on capacitation of technical collages

through rehabilitation and upgrading of infrastructure and
provision of the necessary equipment.

168
522. To this end, the 2024 budget has set aside resources amounting
to Z$249.6 billion to support the various programmes and
projects under the higher and tertiary institutions as indicated
below:-

Table 37: Infrastructure Projects for Higher and Tertiary Education

Name of Institution Project Details Amount
(Z$M)
Universities
Bindura University of Science Education Male Halls of Residence 11,000.00
Lupane State University Faculty of Humanities 12,000.00
Halls of Residence 7,000.00
Manicaland University of Applied Sciences Student Admissions 13,000.00
Halls of Residence 6,500.00
Midlands State University Halls of Residence 12,000.00
Chinhoyi University of Technology Engineering Workshop Phase 1 10,000.00
National University of Science and Student Service Centre 12,000.00
Technology
Gwanda State University Mining Laboratory 13,000.00
Great Zimbabwe University Chivi Centre for Dryland Agriculture 14,000.00
Harare Institute of Technology Laboratory Plaza 17,000.00
University of Zimbabwe Student Affairs Building 10,000.00
Marondera University of Agricultural Office Block 14,000.00
Sciences and Technology Halls of Residence 6,500.00
Zimbabwe Open University Administration, Teaching & Learning Block 10,000.00
Pan African Mining University of Science Teaching Centre 3,500.00
Technology
Sub- Total 158,500.00
Teachers Colleges, Polytechnics and Industrial Training Colleges -
Kushinga Phikelela Polytechnic Student hostel 1,800.00
Marymount Teachers’ College Female Hostel 2,500.00
Hwange Teachers College Lecture blocks 3,000.00
Belvedere Teachers College Rehabilitation of infrastructure 3,000.00
Mutare Teachers’ College Rehabilitation of infrastructure 2,000.00
United College of Education Rehabilitation of infrastructure 2,000.00
Msasa Industrial Training College Rehabilitation of infrastructure 2,800.00
Management Training Bureau Rehabilitation of infrastructure 3,000.00
Mutare Teachers College Baobab Project 1,600.00
J.M. Nkomo Polytechnic Lecture Theatre 2,000.00

169
 Name of Institution Project Details Amount
(Z$M)
Mkoba Teachers’ College Science Centre 3,000.00
Morganzintec Teachers College Borehole drilling 2,000.00
Masvingo Teachers’ College Science Centre 2,100.00
Gweru Polytechnic Fabrication Workshop 1,800.00
Bulawayo Polytechnic Fabrication workshop 2,000.00
Harare Polytechnic Library 3,000.00
Mutare Polytechnic B Tech Block 1,600.00
Hillside Teachers’ College Multipurpose sportsfield 2,000.00
Mutare Polytechnic B Tech Block 3,000.00
School of Hospitality Designs 2,000.00
Hillside Teachers’ College Multipurpose sportsfield 2,700.00
Marymount Teachers College Science Center 2,500.00
JM Nkomo Polytechnic Equipping Science Center 2,700.00
Chivi College Designs 1,200.00
Masvingo Polytechnic Solar Project 2,000.00
Madziwa Teachers’ College Science Laboratories 3,000.00
Kwekwe Polytechnic College Classroom Block 1,200.00
Mutare Polytechnic Sportsfield and Pavillion 1,200.00
Sub Total 62,700.00
Research and Development -
High Performance Infrastructure 2 Renovation of Building 4,000.00
Gwanda, Manicaland, Marondera and Innovation Hubs 16,000.00
Lupane State Universities
Industrial Parks Equipping 5,394.53
Zimbabwe Space Agency Projects Mazowe Ground Receiving satellite 3,000.00
Sub- Total 28,394.53
Grand Total 249,594.53

523. Leveraging on the capacities of some of the technical colleges

in producing items such as furniture, the budget has provided
resources amounting to Z$20 billion to support mass production
for both commercial and own use.

170
 Skills Audit

524. Successful economic and social transformation requires the

human capital which is fit for purpose. The 2018 National
Critical Skills Audit Report identified existing human capital in
the country and gaps that required to be addressed. Some of
the areas identified with skills gap included engineering and
technology, natural sciences, agriculture and medical and
health sciences, among others.

525. Government seeks to update the 2018 Report by undertaking

a comprehensive skills audit to identify requirements for the
nation in order to guide policy formulation and interventions. It
will also focus on identifying basic level skills that can aid the
provision of services down to the ward level.

526. The audit will also identify sector specific skills and development
in pursuit of excellent productivity in all sectors of the economy
including the public sector. The findings of the audit will guide
development of programmes that enhances soft skills such as
critical thinking, alpha leadership and positive mind-sets and
attitudes towards country and nation.

527. An attempt will also be made to identify the skills of the future,
especially in areas such as generative Artificial Intelligence

171
 as well as areas of potential national comparative advantage
such as lithium value chain, ferrochrome manufacturing and
fabrication as well as high level and world class research,
development and innovation.

528. To support the above activities, an amount of Z$43 billion has

been allocated to the Ministry of Skills Audit and Development.

Social Protection

529. In line with the NDS1 theme of “leaving no one or no place

behind ”, provision of decent, inclusive and sustainable social
protection services remains a priority for Government targeting
vulnerable groups- (persons with disabilities, children, the
elderly).

530. In this regard, social protection programmes have been

prioritised with a budget of Z$2.4 trillion for the Ministry of
Public Service, Labour and Social Welfare in order to scale
up coverage and scope of flagship interventions such as the
Basic Education Assistance Module (BEAM), Harmonised
cash transfer programme, Food Deficit Mitigation, health
assistance, child protection services, support to the elderly and
persons with disabilities and the Presidential Input Scheme.

172
531. Going forward, Government will make use of the social
protection integrated Management Information System (MIS)
to effectively target and track beneficiaries under the various
programmes.

Basic Education Assistance Module (BEAM)

532. In 2024, Government through BEAM will provide Z$805 billion

as an educational safety net for around 1.5 million vulnerable
and orphaned learners in all provinces, to cater for school
fees, uniforms, teaching and learning materials.

Food Mitigation

533. Guided by the forecasted El-Nino induced drought during the

2023/24 season, some communities are expected to be food
insecure, and hence the Budget has allocated Z$100 billion
for the distribution of grain to the affected communities cope
with the impact of drought.

534. The country is also expected to benefit from development

partners assistance to the tune of US$48 million in 2024
through the Lean Season Assistance & Building Resilient
Sustainable Community Systems Programmes implemented
by the World Food Programme (WFP).

173
535. In addition, Foreign Commonwealth and Development Office is
expected to support the vulnerable with cash transfers including
the food insecure people with projected disbursements of
USD$1 million in 2024.

536. Furthermore, the People’s Republic of China will provide food

assistance in the first half of 2024.

Urban Mass Transport

537. Government will continue to support provision of affordable

transport in urban areas. In this regard, the Budget will support
a financially sustainable model for ZUPCO which will anchor
provision of a reliable and affordable transport system.

538. Already, Government has provided resources amounting to

US$500 000 towards procurement of spare parts, adequate to
bring back 120 ZUPCO buses on the road.

539. In addition, Government is at an advanced stage to procure

over 520 buses in the next six months, with the first batch of
over 200 buses expected in early January 2024, of which 50
are electric buses, in line with the transition towards green
economy.

174
540. Furthermore, Government will give a greater role to private
sector in the provision of mass urban transport systems in
major cities.

541. In the medium to long term, Government will invest in light

rail system in major cities to provide a reliable and affordable
transport system.

Effective Institution Building and Governance

542. Successful economic transformation hinges on effective

institutions of governance, which promotes private sector
development through a conducive economic environment.
In this regard, Government will continue to capacitate and
reform critical institutions of governance to improve the doing
business environment.

543. To facilitate legislative reforms including, the alignment of laws

to the Constitution, the 2024 National Budget has allocated
Z$1.1 trillion to the Ministry of Justice, Legal and Parliamentary
Affairs.

Ease of Doing Business Reforms

544. The National Development Strategy 1 (NDS1) underscores

the need to enhance national competitiveness and improve

175
 556. To facilitate legislative reforms including, the alignment of laws to the Constitution,
the 2024 National Budget has allocated Z$1.1 trillion to the Ministry of Justice,
Legal and Parliamentary Affairs.

both the Global Competitiveness and Ease of Doing Business

Ease of Doing Business Reforms
rankings to below 100 by 2025. This is achievable through
improvements
557. The in the
National Development quality
Strategy of business
1 (NDS1) regulation
underscores the need to environment
enhance national
and administrative
competitiveness and improveprocesses, among other
both the Global Competitiveness andissues.
Ease of Doing Business
rankings to below 100 by 2025. This is achievable through improvements in the quality of

545. business
Globalregulation
foreignenvironment and administrative
direct investment processes,
(FDI) inflowsamong other issues.
declined by 12%
to US$1.3 trillion in 2022, attributable to geopolitical tensions,
558. Global foreign direct investment (FDI) inflows declined by 12% to US$1.3 trillion in 2022,
which have heightened the risks of a global recession, debt
attributable to geopolitical tensions, which have heightened the risks of a global recession,
pressures
debt and
pressures and supply
supply chain interruptions,
chain interruptions, among others. among others.

Figure 27: FDI Inflows: 2021–2022 (US$ Billions)

Figure 27: FDI Inflows: 2021–2022 (US$ Billions)

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Source: UNCTAD, FDI/MNE database

Source: UNCTAD, FDI/MNE database

559. Foreign direct investment (FDI) flows to Africa declined by 44% to US$45 billion in 2022,
546. while
Foreign
foreign direct investment
direct investment (FDI)
to Southern Africa flows
returned to Africa
to normal declined
levels, by
at $6.7 billion
after
44% theto
peak in 2021.
US$45 billion in 2022, while foreign direct investment
to Southern Africa returned to normal levels, at $6.7 billion
after the peak in 2021. 115

176
 Figure 28: FDI Inflows in Africa: 2021–2022 (US$ Billions)

Figure 28: FDI Inflows in Africa: 2021–2022 (US$ Billions)

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Source: UNCTAD, FDI/MNE database

Source: UNCTAD, FDI/MNE database

560. Government continues to facilitate foreign direct investments through ease of doing business
reforms, resulting in a significant increase in inquiries, investor visits, and investment projects
547. licensed.
Government continues to facilitate foreign direct investments
through ease of doing business reforms, resulting in a
significant
561. As increase
a result, foreign in inquiries,
direct investment investor
inflows into visits,
the country have and investment
generally been on an
upward trend reaching a peak of US$95.8 million in the fourth quarter of 2022.
projects licensed.

Figure 29: Foreign Direct Investment inflows (US$M)

548. As
ϭϮϬ a result, foreign direct investment inflows into the country

have
ϭϬϬ
generally been on an upward trend reaching a peak
ϵϱ͘ϴ of
ϴϲ͘ϱ
US$95.8
ϴϬ
million in the fourth quarter of 2022. ϳϱ͘ϯ
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ϰϳ͘ϭ
ϰϮ͘ϳ ϰϮ͘ϵ
ϯϳ͘Ϯ
ϰϬ ϯϭ͘ϭ

ϮϬ

177
Source: RBZ
 licensed.

561. As a result, foreign direct investment inflows into the country have generally been on an
upward trend reaching a peak of US$95.8 million in the fourth quarter of 2022.
Figure 29: Foreign Direct Investment inflows (US$M)
Figure 29: Foreign Direct Investment inflows (US$M)
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Source: RBZ
Source: RBZ

116
549. Similarly, during the period January to September 2023,
Zimbabwe Investment Development Agency (ZIDA) managed
to draw investors from 38 countries and licensed investors
increased to 469 from 178 recorded during the same period
in 2022.

550. In order to expedite the pace of economic transformation,

Government will upscale the doing business reforms that
addresses the various legislative and administrative bottlenecks
building on the success attained through the implementation
of the Rapid Results Approach.

178
551. This will be done through multistakeholder approach, targeted
at making the country a competitive investment destination.
This will be complemented by other reform measures under
the Structured Dialogue Platform, as well as tax revenue and
administration reforms already underway.

552. Furthermore, the 2024 National Budget will support the

decentralization of public service provision by critical institutions
both physically and use of digital technology.

State Enterprise and Parastatal (SEP) Reform

553. Government is determined to not only ensure that it starts

getting a return from its investments, but also expects SOEs
to create employment and contribute positively to the growth
and development of the economy.

554. As part of the SOEs Reform Agenda, Government is addressing

the conflict of interest that arose from Line Ministries exercising
both the ownership and regulatory functions which undermined
progress on implementation of critical reforms required to
improve performance, as well as achieve the National Vision,

Mutapa Investment Fund

555. Mutapa Investment Fund is mandated through its enabling

Act to undertake secure investments for the benefit and

179
 enjoyment of future generations, support the development
objectives of Government as well as contribute towards fiscal
or macroeconomic stabilisation and contribute to the revenues
of Zimbabwe from the net returns on its investments. The
Mutapa Investment Fund is wholly owned by Government.

556. In order to drive the operationalisation of the Fund, board

members were appointed on 6 November 2023, under a
governance structure that is based on meritocracy. The
Board of the Fund comprises members with diverse skills and
impeccable credentials. The governance structure will also be
underpinned by a fully-fledged management, with the requisite
competence to manage a sovereign wealth fund, with the
vision to place the Fund in a position to compete with its peers
internationally.

557. In line with its objectives, the Board and management of the
Fund are mandated to demand and implement turnaround
strategies from the various companies it now owns, ensure
robust investment policies and key performance targets
are implemented, monitored and evaluated. Furthermore,
the Fund will enforce adherence by the companies to good
corporate governance guidelines applicable to publicly listed
companies.

180
558. The Fund will, therefore, be expected to implement measures
that will strengthen the targeted parastatals’ governance
frameworks and ensure disciplined application of the entities’
resources to meet national targets.

559. The companies under the Fund will continue to be governed

by the national public procurement laws and value for money
principles. Line Ministries will continue to exercise their
regulatory functions, in line with their mandate.

560. The performance of the Fund itself will be subject to strict

monitoring and evaluation by Government to ensure it delivers
on its mandate. Reports on the activities of the Fund, including
its performance will be availed to stakeholders for enhanced
transparency.

Other State Enterprise and Parastatals Reforms (SEPs)

561. Government will continue to implement the reforms approved

by Cabinet outside the portfolio of the Mutapa Investment
Fund.

Mergers

562. Government is committed to conclude merging of institutions

offering related services to avoid costly duplications and

181
 management overload. The merger of Petrotrade and Genesis
Energy is expected to be concluded in the first half of 2024.

Promotion of Good Corporate Governance Practices

563. To improve on good corporate practices in public entities, the

Public Entities Corporate Governance Act will be strengthened
through reviewing some of its provisions in line with best
practices.

Performance Monitoring System

564. The Government will continue to strengthen performance

monitoring, in particular, the implementation of the performance
contracts initiative for Boards and Senior management of public
entities. In addition, Government will develop a performance
monitoring framework that ensures role clarity among the
existing MDAs.

Review Public Procurement of Commercial Public Entities

565. In order to match their private sector counterparts, a review

of the public procurement legislation to level the procurement
playing field of commercial public entities will be conducted.
The reform is aimed at improving efficiency and responsive of

182
 procurement processes for commercially oriented entities, to
fairly compete with privately owned companies. This reform is
expected to improve competitiveness of various commercial
public entities.

Review of Tariffs and Fees

566. The Government will consider timely review of tariff and fees
structures of all commercial public entities, to enhance revenue
generation capacity to improve their operational viability.

Public Sector Accounting

567. Government launched the Zimbabwe Financial Management

Manual in June 2023, to provide guidance on the implementation
of International Public Sector Accounting Standards (IPSAS)
by Public Sector entities in Zimbabwe.

568. This enabled implementing entities to produce their individual

IPSAS Implementation Matrix and Action Plans (IMAPs)
roadmap. The IMAP serve as a contract between the
implementing entity and Treasury to which the entity will
adhere to the agreed milestones and timelines.

569. In 2024, a total of 213 entities comprising 35 MDAs, 86 SOEs

and 92 Local Authorities are expected to produce IPSAS

183
 compliant transitional financial statements for the year ended
31 December 2023, alongside the usual traditional financial
statements.

570. In order to facilitate the consolidation of public sector financial

statements in line with provisions of Section 35 of the Public
Finance Management Act [Chapter 22:19], there is need to
harmonise the accounting policies for entities reporting on the
International Public Sector Accounting Standards (IPSAS) and
those reporting on International Financial Reporting Standards
(IFRS) frameworks. In view of the above, Government will
develop a Harmonized Financial Accounting Policy Guideline
for the Public Sector.

571. Furthermore, Government will develop a Harmonised Chart

of Accounts for all Public Sector Entities to facilitate uniform
identification and classification of similar transactions and
events.

572. Treasury in conjunction with relevant stakeholders will also

develop valuation guidelines to be used by all valuers of public
assets to ensure uniformity and consistence across all public
sector entities.

184
 Enterprise Risk Management Framework and Guidelines

573. To further strengthen internal control in Line Ministries so as to

improve on service delivery and in pursuance to the dictates of
Statutory Instrument 139 of 2019 section 50(2 & 3), Treasury
issued an Enterprise Risk Management Framework and
Guidelines for the public sector.

574. Government will domesticate and implement Enterprise Risk

Management Framework and Guidelines beginning with large
and strategic Line Ministries. Treasury will be issuing guidance
in due course.

Corruption

575. Government has a zero-tolerance policy on corruption and a

number of individuals have successfully been convicted, whilst
a number of cases are before the courts or under investigation.

576. However, the process has faced a number of challenges

attributable to under capitalisation of the relevant institutions
for improving investigations, prosecution of corruption cases,
recovery of proceeds of crime, and enhancement of the
prevention of corruption and other malpractices, both in the
public and private sectors.

185
577. The Anti-Corruption Commission also requires specialized
critical skills which include property valuation, procurement,
engineering, financial intelligence, auditing, and accounting in
the Asset Recovery and Investigations Departments.

578. In this regard, an amount of Z$59.6 billion has been allocated

for ZACC to meet some of its requirements to effectively
undertake its mandate in 2024.

579. In addition, Government will pursue the enactment of the Lay

Bill on Anti-Corruption and Whistle-blowers Protection Bill
which protects whistleblowers and enhance their willingness
to partake in testifying against suspects.

580. Furthermore, specialised Anti-corruption Courts will also be

resourced to ensure speedy prosecution and resolution of all
corruption cases.

581. This will also be complemented by the review of the legislative

framework over judicial processes to ensure expeditious
adjudication over corruption cases to reduce the time for
corruption cases to be heard and concluded.

National Security

582. The security forces play an important role of protecting the

country’s territorial integrity, national interest and sovereignty

186
 over land and air space, against both internal and external
aggression. “Peace is key to economic development”.

583. Whilst the country is generally characterised by peaceful

environment, the ongoing geopolitical dynamics require that
the country continuously capacitate its security forces with
adequate rations, training and relevant equipment, to enable
them to safeguard the country’s integrity.

584. This entails the need to continuously capacitate the security

forces through payment of commensurate remuneration, as
well as review of non-monetary benefits, including provision of
decent accommodation.

585. Therefore, an amount of Z$8.6 trillion has been allocated

towards the security cluster to meet their remuneration,
food rations, operational equipment and the necessary
infrastructure.

586. Government will also capacitate national security institutions

through tapping into their areas of expertise to implement
government projects such as road construction and engineering
services. This will save public resources which would have
been paid to private contractors.

187
 Tripartite Negotiating Forum

587. The Tripartite Negotiating Forum (TNF) is a Statutory body

established through the Tripartite Negotiating Forum Act of
2019. It is conferred with powers to consult, dialogue and
negotiate on social and economic issues among Government,
Organised Business and Organised Labour and make
recommendations to Cabinet.

588. The body is mandated to:

• Consult and negotiate over social and economic issues

and submit recommendations to Cabinet;
• Consult and negotiate Zimbabwe labour laws in line with
the Constitution and other international best practices;
• Foster cooperation of the tripartite constituents, consult
other key stakeholders and contribute to formulating and
implementing social and economic policies; and
• Generate and promote a shared national socio-economic
vision.

589. Since its inception, the TNF Secretariate has been operating
under the Ministry of Public Service, Labour and Social Welfare
until July 2023, when the Executive Director was appointed.
Subsequently, the TNF Secretariate has since been weaned
off the Ministry and now operates as an independent institution
with a separate budget.

188
590. In this regard, resources have been set aside to meet
employment, operations and capital costs of TNF Secretariate.

Oversight Institutions

591. Zimbabwe as a Constitutional democracy State values the

importance of oversight institutions on the operations of the
State and welfare of the general public. In this regard, the
2024 National Budget has set aside resources to support
independent oversight institutions in line with the Constitution.

Auditor General

592. The Office of the Auditor General is critical in promoting public

sector transparency, accountability and good governance,
through carrying out financial and compliance audits in line
with the Constitution and Statutory requirement.

593. To support their operational requirements, Z$117 billion has

been provided for under this Budget to cover employment
costs, training and development of staff, digitalisation, as well
as for rehabilitation and upgrading of the Burroughs House
Building.

189
 Parliament

594. Government recognises the important role of Parliament of

legislation and oversight. Therefore, Government will continue
to capacitate the institution to undertake its mandate effectively.

595. Under the leadership and facilitation of His Excellency, the

President, a state of the art, New Parliament Building in Mt
Hampden was constructed with the support of the People’s
Republic of China.

596. To support the functions of the Parliament, Z$475.1 billion has

been provided under the 2024 National Budget for the day-
to-day operations, vehicles, Constituency Development Fund
(CDF) and other related equipment for both Parliament Staff
and Members of Parliament.

Public Service Commission

597. The Public Service Commission is central to the effective and

efficient delivery of public services through recruitment and
development of civil service personnel.

598. To support the Commission to deliver on its mandate of providing

a motivated and capable public service able to deliver quality
public services, the Budget has set aside Z$1.4 trillion to support

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 interventions by the institution targeting ICT infrastructure,
particularly the Human Resources Information Management
System, Pension and Payroll Systems, procurement of buses
for the service and other major infrastructure projects.

599. This will also cover monetary and non-monetary benefits such
as housing, medical insurance, funeral expenses, recalibration
of pensionable emoluments and the wage bill among others.

Devolution & Decentralisation

600. In the absence of enabling legislation, the administrative

structures at provincial, metropolitan and local authority levels
are being used to give impetus to community based and
people centred development in provinces, metropolitan areas
and districts in pursuit of the devolution agenda.

601. In this regard, the lower tiers of Government have formulated

and are implementing Provincial and Local Authority
Investment and Development Plans that are formulated
through extensive bottom-up consultations from the Village/
Ward, district and provincial levels. This is consistent with
His Excellency, the President’s clarion call ‘Nyika inovakwa,
inotongwa, inonamatigwa nevene vayo, Ilizwe lakhiwa, libuswe,
likhulekelwe ngabanikazi balo’, that exhorts every community

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 in the country to transform themselves by creating economic
areas with their own GDPs, and able to attract investment in
their own right.

602. Already, some provinces, such as Matabeleland North,

Bulawayo Metropolitan, Masvingo and Mashonaland East
have initiated investment roadshows, leveraging on local
endowments, in collaboration with central Government.

603. To ensure equitable development across all provinces, the

Inter-Governmental Fiscal Transfers IGFT) allocation, availed
through the Budget to every province and based on population
size, poverty incidence and unpaved roads, has allowed for
implementation of community based and driven projects.

604. Government, working with other stakeholders, including

development partners, have produced a Draft Inter-
Governmental Fiscal Transfers Administrative Manual, that will
guide local tiers of Government to effectively manage public
resources, including the following:

• Revenue allocation formula that brings fairness in terms of

resource allocation and utilisation;
• Financial Management Framework that clearly articulates
disbursement modalities and financial reporting mechanism;

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 • An outline of the Institutional Framework for managing the
grant with the view to improve efficiency and effectiveness
at the same time avoiding duplication and overlapping of
roles and responsibilities; and
• Monitoring and reporting framework which also involves
the communities.

605. This initiative will ensure accountability and transparency of

the fiscal grant and will enable Treasury to effectively disburse
the resources as prescribed by the Constitution.

606. During 2024, an allocation of Z$2.7 trillion has been set aside
under the IGFT for provinces to undertake local projects that
improve provision of public services that reflect the needs of
communities in different regions and localities as indicated in
the Table below.

Table 38: 2024 Inter-Governmental Fiscal Transfers Allocation

2024 Proposed Estimates
Operational Grant Capital Grant Total Grant
PROVINCIAL COUNCILS
Bulawayo Metropolitan 4,520,138,000 10,170,310,000 14,690,448,000
Manicaland 12,870,703,500 28,959,082,800 41,829,786,300
Mashonaland Central 12,748,143,700 28,683,323,400 41,431,467,100
Mashonaland East 12,032,146,100 27,072,329,000 39,104,475,100
Mashonaland West 12,364,148,500 27,819,334,200 40,183,482,700
Matabeleland North 11,249,516,700 25,311,412,700 36,560,929,400
Matabeleland South 11,317,071,500 25,463,410,900 36,780,482,400
Midlands 11,955,807,300 26,900,566,400 38,856,373,700
Masvingo 12,294,591,300 27,662,830,500 39,957,421,800
Harare Metropolitan 6,518,330,200 14,666,242,900 21,184,573,100
Sub-total 107,870,596,800 242,708,842,800 350,579,439,600

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 2024 Proposed Estimates
Operational Grant Capital Grant Total Grant

LOCAL AUTHORITIES
Bulawayo Metropolitan 1,983,395,300 26,775,836,200 28,759,231,500
Manicaland 19,344,142,400 261,145,924,100 280,490,066,500
Mashonaland Central 18,728,732,200 252,837,884,300 271,566,616,500
Mashonaland East 18,412,914,800 248,574,350,000 266,987,264,800
Mashonaland West 23,295,237,600 314,485,704,700 337,780,942,300
Matabeleland North 16,032,775,400 216,442,475,100 232,475,250,500
Matabeleland South 16,396,754,900 221,356,187,600 237,752,942,500
Midlands 22,504,279,600 303,807,776,000 326,312,055,600
Masvingo 16,447,913,800 222,046,828,800 238,494,742,600
Harare Metropolitan 8,659,749,200 116,906,618,400 125,566,367,600
Sub-total 161,805,895,200 2,184,379,585,200 2,346,185,480,400
Total 269,676,492,000 2,427,088,428,000 2,696,764,920,000

Local Government

607. Local authorities play a pivotal role in service provision at

local level, especially on restoring water supplies, fixing
sewage systems, repairing roads across towns and cities to
complement Central Government and Development Partners
efforts.

608. Therefore, local authorities are required to focus on their

core mandate of service provision by allocating 70% of their
revenue collections towards service provision.

609. In addition, local authorities should enhance their revenue

collections through updating their valuation rolls and databases
to enable timely and accurate billing of rates and property

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 taxes, as well improvement of their general public finance
management systems to reduce revenue losses.

610. Furthermore, local authorities are encouraged to come up

with innovative ways of resource mobilization, such as issuing
municipal bonds and RDC mining fees, to augment devolution
resources and Constituent Development resources from
Central Government.

Image Building, Engagement and Re-engagement

611. To capacitate the Ministry of Foreign Affairs and International

Trade to advance image building, engagement and re-
engagement programme, an amount of Z$976 billion has
been set aside.

612. This also includes monthly allocation of US$6.5 million towards

operations of foreign missions and extinguishing outstanding
arrears. Government will also continue to implement value for
money exercise in our foreign missions, to curtail avoidable
expenditures and further accumulation of additional arrears.

613. Government will continue to upgrade and construct the

country’s chanceries and embassies in key areas that
promote engagement and re-engagement. Efforts will also be

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 made to collaborate with private sector through PPPs in this
programme.

614. In addition, Z$122.4 billion has been set aside for the Ministry
of Information, Publicity and Broadcasting Services to improve
the country’s image though robust information management
and dissemination.

615. This will be achieved through such interventions as increased

radio and TV coverage across the country and abroad. The
primary objective is to ensure that radio and television coverage
reaches out to all Zimbabweans.

Arreas Clearance and Debt Resolution Process

616. In December 2022, Government established a Structured

Dialogue Platform (SDP) with all its creditors and Development
Partners, to institutionalize dialogue on economic and
governance reforms that underpin the Zimbabwe’s Arrears
Clearance and Debt Resolution process. The process is being
Championed by the President of the African Development
Bank (AfDB), Dr. A. A. Adesina, and H. E. J. A. Chissano,
former President of the Republic of Mozambique, who is the
High - Level Facilitator.

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617. Since the establishment of the SDP in December 2022, there
has been commendable progress, with growing consensus and
confidence in the process, culminating in the establishment of
three strategic working pillars:

• Economic;
• Governance; and
• Land Tenure, Compensation of Former Farm Owners
and the Resolution of Bilateral Investment Protection and
Promotion Agreements (BIPPAs).

618. The Sector Working Groups (SWGs) have developed Policy

Reform Matrices under the three pillars which Government
takes full ownership and is committed to implement. The
Roadmap going forward as part of the Arrears Clearance and
Debt Resolution is as follows:

• Signing off an IMF Staff Monitored Program (SMP);

• Continue fighting corruption;
• Conclude legislation to provide for transferable and
bankable 99-year leases;
• Payment of compensation of Former Farm Owners based
on the Global Compensation Deed; and
• Resolution of BIPPAs.

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619. In line with the roadmap, in June 2023, upon the request of the
Government of Zimbabwe, the International Monetary Fund
(IMF) agreed to start the process of engagement on a Staff
Monitored Programme, which is expected to commence during
the first quarter of 2024. To cushion the vulnerable during the
SMP implementation period, Government is seeking for a
‘wet’ SMP, for which funding is required for social protection,
education, health, agriculture/food security and climate
change.

620. Reflecting Government’s commitment to the reform agenda,

Government has started implementing the reforms contained
in the three Policy Reforms Matrices. Significant progress
has been achieved in the implementation of the Economic
Reforms Matrix, through policy measures for macroeconomic
stabilisation to instil confidence, strengthen demand for the
local currency, and foster market discipline.

621. In addition, Government has engaged the African Legal

Support Facility which is providing technical assistance in
the drafting of the 99-year lease legal instrument, to ensure it
meets the criteria of transferability and bankability, as set out
in our NDS1 (2021-2025).

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622. Following a break during the election period, the Structured
Dialogue Platform meetings will resume in January 2024.
Meanwhile, Sector Working Group meetings are ongoing,
to finalise the three Policy Matrices and implementation of
reforms where consensus has been reached.

Compensation of Former Farm Owners and Resolution of BIPPAs

623. In line with the Roadmap of the Arrears Clearance and Debt
Resolution process, Government made an allocation of US$55
million in the 2024 National Budget for compensation of Former
Farmers Owners, with US$35 million earmarked for farms
under the Global Compensation Deed, while US$20 million is
compensation for farms that were protected by BIPPAs which
were affected by the land reform programme.

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REVENUE MEASURES

Introduction

624. Mr Speaker Sir, the measures that I am proposing seek

to provide relief to taxpayers, enhance the capacity of
Government to generate additional revenue, in particular, from
Micro & Small Enterprises and Mining, as well as strengthen
Tax Administration.

Tax Relief Measures

Personal Income

Tax-Free Threshold

625. In line with macroeconomic developments, Government

adjusted the Tax-Free Threshold from Z$92 000 to Z$500 000
per month, with effect from August 2023.

626. Further adjustments to wages and salaries have, however,

resulted in a bracket creep, hence, I propose to review the
Tax-Free Threshold to Z$750 000 per month, or Z$9 000,000
per annum, and adjust the tax bands to end at Z$270 million
per annum, above which tax will be levied at a rate of 40%,
with effect from 1 January 2024.

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627. Table 39 below shows the proposed annual Personal Income
Tax Bands:

Table 39: Proposed Personal Income Tax Table

Tax Band ZWL$ Tax Rate (%)
0 to 9 000 000 0
9 000 001 to 27 000 000 20
27 000 001 - 90 000 000 25
90 000 001 - 180 000 000 30
180 000 001 - 270 000 000 35
Above 270 000 000 40

Bonus Tax Free Threshold

628. I, further, propose to review the local currency Tax-Free Bonus

Threshold from Z$500,000 to Z$7 500 000, with effect from 1
November 2023.

629. These measures are envisaged to increase disposable

income, aggregate demand for goods and services, as well as
revenue to the Fiscus.

Compensation of Expropriated Farms

Capital Gains Tax

630. Honourable Members would be aware that Government

is committed to pay compensation to former commercial
farmers whose farms were acquired under the Land Reform
Programme in 2000.

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631. Since May 2019, interim compensatory payments were made
to some of the farmers.

632. A new proposal for the payment of compensation amounts,

including interest to affected farmers over a period of 10 (ten)
years has been made.

633. However, where a specified asset is expropriated, such asset

shall be deemed to have been sold for an amount equal to the
amount paid by way of compensation for the expropriation of
such asset, hence, is subject to capital gains tax.

634. I, therefore, propose that amounts received by or accruing to

commercial farmers whose farms were acquired under the
Land Reform Programme be exempt from Capital Gains Tax.

Intermediated Money Transfer Tax

635. In addition, I propose to exempt from Intermediated Money

Transfer Tax, the transfer of funds for the compensation to
commercial farmers whose farms were acquired under the
Land Reform Programme.

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 Withholding Tax

Small-Scale and Subsistence Farmers

636. Mr Speaker Sir, in order to support smallholder and subsistent

farmers in the delivery of grain to the Grain Marketing Board and
other commercial buyers, I propose to review the tax-exempt
threshold on withholding tax on agricultural commodities that
include soya beans, sunflower, groundnuts, cotton seed from
US$1 000 per annum to US$5 000 or local currency equivalent.

Suspension of duty on Motor Vehicles imported by Safari

and Tour Operators

637. Over the past year, the tourism sector has registered a
considerable recovery from the daunting effects of the
COVID-19 pandemic.

638. In order to allow the sector to fully recuperate, I propose to

renew the suspension of duty on new motor vehicles imported
by Safari and Tour Operators for a further 2 years, beginning
1 January 2024.

639. Beneficiaries will, however, limited to import a maximum of 5

motor vehicles per annum.

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 Revenue Enhancing Measures

Corporate Income Tax Rate

640. Honourable members would be aware that, Government, in

2020, reviewed downwards the Corporate Income Tax rate
from 25% to 24%, with a view to cushion the productive sector
from the negative effects of the Covid-19 pandemic.

641. However, due to the impact of the incentives availed to various

economic sectors, the effective tax rate has declined variably
across sectors.

642. I, therefore, propose to restore the pre-Covid-19 Corporate

Income Tax Rate of 25%, which remains favourable compared
to rates obtaining in the SADC Region.

643. This measure takes effect from 1 January 2024.

Taxation of the Micro and Small Enterprises

644. The attainment of goals and objectives outlined in the National

Development Strategy 1 (NDS1) and the Vision 2030 aspiration
of an “Empowered and Prosperous Upper Middle-Income
Economy by 2030” is largely dependent on the country’s
ability to mobilise domestic resources, in the absence of
concessionary external finance and grants.

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645. Domestic Resource Mobilisation, through a transparent,
equitable and efficient tax system is, thus, an important
determinant in increasing the Fiscal Space.

Tax Compliance

646. The Micro and Small Enterprises, have, over the years,
contributed significantly to the Gross Domestic Product and
employment, hence, are an important source of livelihood.

647. The business model of these enterprises, however, structurally

avoids regulatory requirements that include compliance to
taxation, Local Authority by-laws on operating infrastructure,
health, sanitation and licensing.

648. The growth of the micro and small enterprises has, thus,
undermined Domestic Resources Mobilisation efforts,
particularly as formal business deliberately informalize
operations and trade through tuckshops that predominantly
trade in foreign currency.

649. It is, thus, crucial to restore the trading structure, where the bulk
of goods are retailed through the formal sector that contribute
to the Fiscus.

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650. I, therefore, propose to implement the following measures:

Licensing of Traders

651. In order to restore the supply chain from the manufacturer,

wholesaler to retailer, I propose that only licensed and Tax
Compliant Operators procure goods from manufacturers and
wholesalers.

652. I, further, propose that only traders registered for VAT purposes
and in possession of valid Tax Clearance Certificates be
eligible to procure goods from manufacturers.

653. These measures take effect from 1 January 2024.

VAT Registration Threshold

654. Mr Speaker Sir, operators with a minimum annual turnover of

US$40 000, or local currency equivalent thereof, are required
to register for Value Added Tax.

655. The high registration threshold, however, precludes micro and

small enterprises from registering for VAT purposes.

656. Consequently, the Tax Administration’s capacity to capture

revenue generated through the entire value chain is weakened.

206
657. I, therefore, propose to review downwards, the VAT registration
threshold to US$25 000, or local currency equivalent, with
effect from 1 January 2024.

658. Enterprises that meet the above threshold should, thus, register
and account for VAT, failure of which applicable penalties will
be invoked.

Reserved Sector Regulations

659. Honourable Members would be aware that the following sectors

are reserved for the citizens, in terms of the Indigenisation and
Economic Empowerment Act.

• Transportation: passenger buses, taxes and car hire

services;
• Retail and wholesale trade;
• Barber shops, hairdressing and beauty salons;
• Employment Agencies;
• Estate Agencies;
• Valet services;
• Grain milling;
• Bakeries;
• Tobacco grading and packaging;

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 • Advertising Agencies;
• Provision of local arts and craft, marketing and distribution;
and,
• Artisanal mining.

660. However, participation of foreign nationals in the reserved

sectors has significantly increased and is motivated by the
exclusive trade in foreign currency, hence, exacerbates illicit
financial flows, in particular, tax evasion.

Implementation of Standards: Inadequate and Hygienic

Trading Space

661. Furthermore, whereas there are standards prescribed through

Local Authority by-laws in terms of operating in a healthy
environment that limits the risks of disease outbreak, there
has, however, been laxity on implementation.

662. In order to restore sanity in Cities and Towns, thereby facilitating

collection of revenue by the Tax Administration, the responsible
Government Ministries, Departments and Agencies are
implored to strictly implement the above provisions.

Tax Expenditures

663. Mr Speaker Sir, Tax Expenditures are tax benefits that

Government use to pursue various policy goals that include

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 attracting investment, enhancing production, advancing
innovation as well as protecting vulnerable groups, among
others.

664. Tax Expenditures are, however, costly, as they lower the tax
liability of the unintended beneficiary as well as Government
revenue, hence, are often ineffective in reaching the intended
beneficiaries.

665. Tax Expenditures also have a significant impact on the capacity

to mobilise resources, hence, compromise the transparency of
national budgets and policies, if not monitored and assessed
consistently.

666. In order to enhance tax transparency, simplify tax administration,

reduce wasteful tax expenditures, thereby increasing revenue
to the Fiscus, I propose the following measures:

VAT Zero Ratings and Exemptions

667. The current legislation provides for the zero rating and
exemption of specified goods and services, in particular,
goods predominantly consumed by vulnerable members of
the society, as well as other critical services.

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668. I, therefore, propose to:

• Limit VAT zero ratings to exports, in line with the Destination

Principle of Value Added Tax, where goods and services are
liable to tax in the jurisdiction in which they are consumed;
• Limit VAT exemptions to medicines and medical services,
goods for use by the physically challenged, sanitary wear,
fuel & fuel products, agricultural inputs, implements &
produce (excluding live animals, groundnuts, cotton seed,
soya beans and products thereof), wheat (excluding bread),
milk and salt. The exemptions will apply through the entire
value chain;
• The remaining goods and services would, thus, be standard
rated.

669. For ease of administration, the above measures will be

implemented with effect from 1 January 2024.

Fostering Fair and Effective Tax Systems

Minimum Domestic Top-Up Tax

670. Mr Speaker Sir, the Domestic Minimum Top Up Tax (DMTT) is

part of the Global Rules which aim to ensure that global profits
of large multinational enterprises are taxed at a minimum
Corporate Income Tax rate of 15%.

210
671. Granting of generous tax incentives result in an effective tax
rate of less than 15% for some multinationals. Under the Global
Tax Rules, where a tax incentive results in an effective rate of
less than 15%, the tax jurisdiction where the multinational is
headquartered collects the difference between the effective
tax under the tax incentive scheme and the minimum effective
rate of 15% (the Top-Up Tax).

672. The DMTT allows the country where the low tax profits arise
from the tax incentive to collect the Top-Up Tax rather than
ceding taxing rights to the headquarter jurisdiction.

673. This initiative has been agreed upon by almost 140 jurisdictions
as part of the Organisation for Economic Cooperation and
Development’s Inclusive Framework on Base Erosion and
Profit Shifting (BEPS).

674. Resident countries of multinational corporations will, thus,

commence collection of the Top-Up Tax on income, where
source countries would not have levied tax to the expected
minimum of 15%.

675. The calculation of the DMTT will be based on the effective

tax rate charged on the jurisdictional profits as opposed to
the jurisdictions’ statutory corporate income tax. The DMTT

211
 only taxes the tax incentives to the same extent that the same
income will be included at the headquarter country of the
company.

676. The DMTT gives the priority taxing rights to the source
jurisdiction as opposed to the headquarters of investing
company, hence, allow the source country to impose an
additional tax on subsidiaries of large multinational companies
operating locally and benefiting from low tax up to an effective
rate of 15%.

677. I, therefore, propose to enact DMTT rules to guard against

ceding taxing rights to foreign jurisdictions on Top-Up Tax
arising from tax incentives.

678. This measure takes effect from 1 January 2024.

Deferment of Value Added Tax

679. Honourable Members would be aware that Government, in

2005, introduced a facility for VAT deferment to mitigate on
the cash flow impact on business.

680. However, the benevolence has, been abused by the majority

of beneficiaries through failure to honour their tax obligations,
hence, the facility has contributed towards accumulation of
debts owed to the Fiscus.

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681. In order to safeguard Fiscal revenues, I propose that operators
that fail to honour the VAT deferred be indefinitely excluded
from benefiting from the Facility.

682. Furthermore, in order to accommodate projects with longer

gestation periods for plant installation and mining development,
I propose deferment of VAT to commencement of production, up
to a maximum of 2 and 3 years, for operators in manufacturing
and mining, respectively, subject to approval by the Minister
responsible for Finance.

683. The tax deferred will, however, be fixed at the foreign currency
amount payable at the time of importation, albeit, payable in
local currency at the prevailing exchange rate at the time of
payment.

Rebate of Duty on Motor Vehicles Imported by Civil and

Public Health Servants

684. Government in 2019, availed a Rebate of Duty scheme on

motor vehicles imported by Senior Civil Servants who were no
longer entitled to Condition of Service vehicles. The Rebate of
Duty Facility was also extended to other civil servants who have
serviced for a period of at least 10 years, as an interim relief
measure while the transport challenges are being addressed.

213
685. Investigations conducted with the assistance of the Zimbabwe
Anti-Corruption Commission, however, point to the fact that
the Facility has been grossly abused, as the majority of civil
servants cannot afford to purchase motor vehicles, hence, the
following cases were revealed:

• Beneficiaries cede the privilege to third parties, in particular,

car dealers, for token fees ranging from US$500 to $1 000;
whereas revenue foregone on a vehicle range from US$3
500- US$10 000;
• Non civil servants import motor vehicles using the rebate
facility through corrupt practices;
• Fraudulent behaviour by beneficiaries where high value
vehicles are imported in place of approved low value
vehicles.

686. Consequently, the revenue foregone through motor vehicle

imports under this Facility is, thus, not commensurate with the
objective of enhancing the welfare of civil servants.

687. In order to mitigate revenue loss to the Fiscus, as well as granting

an opportunity for beneficiaries to contribute to Government
revenues, I propose to reduce Allowable Thresholds as follows:

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 Table 40: Revised Allowable Thresholds
Beneficiary’s Grade Allowable Threshold (US$)
B and C 2 500
D and E 4 000

688. I, further, propose to prohibit beneficiaries from disposing motor

vehicles on which Rebate of Duty will have been granted, within
5 years from the date of importation, hence, any beneficiary
who disposes a motor vehicle before the 5-year period shall
be liable to residual duty.

689. These measures take effect from 1 January 2024.

Suspension of Duty on Basic Commodities

690. In order to cushion consumers from unjustified prices increases,

Government suspended customs duty on basic commodities.

691. This measure has already contributed to stability in the prices of

basic commodities, hence, has fulfilled the intended objective.

692. I, therefore, propose to remove the Suspension of Duty with

effect from 31 January 2024.

693. Government will, however, continue to monitor the prices of

basic commodities, with a view to ensure responsible pricing
and affordability.

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 Surcharge on High Value Vehicles

694. Honourable Members would be aware that Government, in

June 2023, introduced a 30% Surcharge on motor vehicles
with a minimum Free-on-Board value of US$120 000, aimed
at enhancing the wealth redistributive function of taxes.

695. There is, thus, scope to strengthen the concept, in view of the
volumes of high value motor vehicles being imported.

696. I, therefore, propose to expand the scope of the Surcharge as

follows, with effect from 1 January 2024:

Table 41 : Proposed Surcharge Rates

FOB Value (US$) Surcharge (%)
120 000-300 000 30
300 001-700 000 40
Above 700 000 50

697. The Surcharge will, however, not apply to imports by

Government.

Third Party Motor Vehicle Insurance Scheme

698. Mr Speaker Sir, Third-Party Insurance for the private and

public motor vehicles was established under the Road Traffic
Act, in order to cushion against losses through road accidents
and property damages.

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699. Road traffic accidents are now ranked as the most prevalent
cause of deaths and injuries across the globe.

700. Whilst insurance is an appropriate mechanism to cover liability

costs, it has, however, proved difficult to enforce third party
liabilities since private insurers are profit oriented, hence, have
no motivation to compensate for the losses incurred.

701. In that regard, I propose that Government assumes Third-Party

Motor Vehicle Insurance, to private and public motor vehicles,
as is the case with other countries in the region.

Compensation Limits

702. Mr Speaker Sir, the prescribed compensation limits provided

through the Road Traffic Act, are not adequate, since they are
restricted to death, permanent disability, medical and funeral
expenses.

703. I, therefore, propose to broaden the scope of third-party

insurance cover under the Third-Party Motor Vehicle Scheme
to include the following:

• Medical benefits;
• Rehabilitation;

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 • Injury grants; and
• Funeral grants and Loss of income.

704. The scheme will be operational with effect from 1 April 2024.

Mining Tax Revenue Contribution

705. The mining sector contributes significantly to the country’s

GDP accounting for 12.8% and 13.2% between 2021 and
2022, respectively.

706. The contribution of the sector to total revenue has remained

subdued, since it contributed 13.1% in 2021 to total revenue with
platinum accounting for 77% of the revenue. The contribution
of gold remains insignificant at 0.33% despite accounting for
about 32% of mineral exports.

707. The low fiscal revenues generated from some of the minerals
is reflective of the preferential structure of the tax regime, low
levels of beneficiation as well as potentially high levels of tax
avoidance and evasion.

708. I, therefore, propose measures that seek to generate optimal

revenue to the Fiscus as follows:

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 Capital Gains Tax and Stamp Duty

709. I propose that no transfer of mining rights shall be approved

without payment of Capital Gains Tax and Stamp Duty or any
other tax due on the value of the transaction. Failure to abide
by this condition shall render the disposal or lease of mining
rights null and void.

710. In addition, I propose that all documents or agreements for

transfer or disposal or lease of mineral rights be lodged with
the State for review and approval before the transaction is
concluded.

Sharing of Revenue on Disposal of Mineral Rights

711. In view of the recent developments where mining rights are

disposed of privately outside the country and at astronomic
prices, I propose that revenue derived therefrom be shared
equally with the State.

712. Furthermore, in order to enable Government to track the

movement of mining rights for tax purposes, I, propose that a
register of mining rights with a record of applications, grants,
variations, dealings, assignments, transfers, suspensions and
cancellations of rights be maintained and accessible to the
Zimbabwe Revenue Authority.

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 Notification of the Intention to Transfer or Lease Mining Rights

713. Whereas transfer of a mining right is a sale that should attract

Capital Gains Tax, this has, however, not been the case, since
assets are transferred without the knowledge of ZIMRA.

714. I, therefore, propose that all agreements for the transfer or

disposal or lease of mining rights should be lodged with the
State, reviewed and approved before they are implemented.

715. Furthermore, in order to enhance the capacity of the Tax

Administration, I propose that holders of mining rights be
obliged to inform Government of the intention to transfer or
lease such rights before the transaction occurs, failure of
which a penalty will be apply.

716. Alternatively, the State shall enforce this right by placing a lien
on the local assets.

717. These measures take effect from 1 January 2024.

Mineral Beneficiation

Lithium

718. Mr Speaker Sir, substantial mineral revenues can be generated

from beneficiation of key minerals. With a significant resource

220
 endowment of Platinum Group of Metals (PGMs), gold, lithium,
and diamonds, economic transformation and development
can be anchored on beneficiation.

719. Notable milestones have already been achieved in the PGMs,

with significant amount of investment in beneficiation plants
on course to commission a Base Metal Refinery by 2024.

720. The beneficiation initiatives have been achieved in part through

the imposition of export tax on un-beneficiated minerals. It is
envisaged that continued investment in value addition plants
and beneficiation of minerals into diverse products will earn
the country more revenue and export receipts.

721. The success story for PGMs should, thus, be replicated to

lithium beneficiation, within a time frame of not more than five
years, in order to yield revenue to the fiscus.

722. The Value Added Tax legislation is already prescriptive on what

constitutes beneficiation and defines “un-beneficiated lithium”
as lithium exported for use in automotive or other batteries
manufactured outside Zimbabwe, or for the manufacture of
lithium carbonate, or for any beneficiation whatsoever outside
Zimbabwe.

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723. Within this context, any lithium value addition process that
does not result in the production of lithium carbonate is not
regarded as beneficiation, hence, is liable to an export tax.

724. Lithium producing companies should submit their beneficiation

plans no later than 31 March 2024.

725. Furthermore, no licences shall be granted to a prospective

lithium company without approval of a beneficiation plan.

Corporate Social Responsibility

Levy on Selected Minerals

726. Whereas exploitation of mineral resources has intensified

due to new discoveries in particular of lithium, the Corporate
Social Responsibility within the mining sector has, however,
been neglected, despite its importance to mine-community
relations.

727. The communities affected by mining operations lose the

natural inheritance marvels that the future generations would
never enjoy.

728. As a token of remembrance of the mountains that nature offered,

local communities should be provided with basic services that

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 include water, health care, electricity and sanitation, among
others.

729. Development of mines, thus, present an opportunity to improve

conditions within these communities, hence, I propose to
introduce a 1% levy on gross proceeds of lithium, black granite
and other cut or uncut dimensional stones and quarry stones.

730. The funds derived from the levy will be ring-fenced for
community development of the area where the mining
operations transpire.

731. The levy will be deposited into a Fund administered by the

Minister responsible for Finance and utilised in consultation
with the relevant stakeholders.

Financing Road Infrastructure

732. Mr Speaker Sir, in order to mobilise resources to finance road

infrastructure, I propose to introduce the following measures:

Strategic Reserve Levy

733. I propose to review upwards the Strategic Reserve Levy by

US$0.03 and US$0.05 per litre of diesel and petrol, respectively,
with effect from 1 January 2024.

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 Toll Fees

734. Toll Fees are currently pegged between US$2 and US$10,
depending on the type of vehicle.

735. I, therefore, propose an upward review of Toll Fees on premium

roads, that is, Harare-Beitbridge and Plumtree-Mutare and
other roads as follows, with effect from 1 January 2024:

Table 42: Proposed Toll Fees (US$)

Type of vehicle Current Fee Proposed Proposed Fee:
(US$) Fee: Premium Other Roads
Roads (US$) (US$)
Motorcycles Exempted Exempted Exempted
Light Motor-Vehicles 2 5 4
Minibuses 3 8 6
Buses 4 10 8
Heavy Vehicles 5 15 10
Haulage Trucks 10 25 20

736. Toll fees for foreign registered vehicles are payable in United
States Dollars or equivalent in other foreign currencies. The
fees for locally registered vehicles may, however, be payable
in local currency at the prevailing exchange rate.

737. Revenue derived from the increased fees will be remitted to

the Consolidated Revenue Fund.

738. For purposes of transparency in the accounting of the funds,

ZIMRA will install a Virtual Fiscal Solution at all tollgates.

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 Vehicle Registration Fees

Central Vehicles Registry Fees

739. I propose to review upwards, selected fees charged by the

Central Vehicle Registry as follows:

Table 43: Proposed Vehicle Registration Fees

Nature of Service Current Proposed Fee (US$)
Fee (US$)
Vehicle Registration i. US$100 for vehicles with engine capacity of 1500
cc.
80 ii. US$500 for vehicles with engine capacity above
1500 cc.
Issuance of Personalised Number 1 200 i. US$2500 for vehicles with engine capacity of
Plates 1500 cc.
ii. US$5 000 for vehicles with engine capacity above
1500 cc.

740. I, further, propose that passport fees be reviewed as follows:

Table 44: Proposed Passports Fees

Nature of Fee Proposed Fee (US$)
Ordinary Passport 200
Emergency Passport (3 days) 300

741. These measures take effect from 1 January 2024.

742. Additional revenue generated from the above measures will

be ring fenced towards road infrastructure development.

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 Externalization of Foreign Currency

743. The foreign currency auction market provided a lifeline to

meet basic demands for raw materials and capital goods, in
particular for the manufacturing sector.

744. However, some of the funds obtained through the auction

and interbank markets have not been utilised for the intended
purpose, as evidenced by a mismatch between the goods
imported and the funds allocated.

745. This points to evidence of externalisation that transpires

through a practice where funds are transferred to own
company registered in a foreign country. In some instances,
goods purported to have been imported never arrive in the
country or a lesser value of the goods paid for is imported.

746. These malpractices prejudice revenue to the Fiscus and the

hard-earned foreign currency.

747. I, therefore, propose that ZIMRA links with the financial

institutions, in order to match the bill of entry with the goods that
are imported, where funds are obtained through the auction or
interbank market.

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748. This provides an opportunity for an audit through physical
examination, thereby curbing the abuse.

Levy on Sugar Content of Beverages

749. In response to the growing concerns on the adverse effects of

consumption of sugar, in particular contained in beverages, tax
on beverages has been implemented in a number of countries
including in the SADC region and beyond.

750. The consumption of high sugar content beverages is linked to

increased risk of non-communicable diseases.

751. It is, thus, necessary to discourage consumption of high sugar

content beverages, hence, I propose to introduce a levy of
US$0.02 per gram of sugar contained in beverages, excluding
water, with effect from 1 January 2024.

752. Funds derived from this levy will be ring fenced for therapy
and procurement of cancer equipment for diagnosis.

Wealth Tax

753. Mr Speaker Sir, one of the key principles of tax policy is to

address the regressivity of tax that occurs when individuals
in a low-income category pay a higher percentage of their
income as compared to individuals in higher income bracket.

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754. Consequently, the tax incidences fall disproportionately on the
low-income groups resulting in inequality.

755. In order to ensure vertical equity, where taxpayers with more

income or property contribute proportionately to the Fiscus,
I propose to introduce a Wealth Tax levied at a rate of 1% of
market values of residential properties with a minimum value of
US$100 000. The tax is payable in every year of assessment.

756. Upon assessment of the value of the property and the tax
payable thereof, taxpayers may elect to pay the tax on monthly,
quarterly, or annual basis.

757. Resources derived from the levy will be ring fenced towards
urban infrastructure development, in particular roads, water,
sewer, and community health centres.

758. Principal Private Residential Properties owned by elderly

persons aged 70 years and above will, however, be exempt
from the tax.

Excise Duty

Digital Platform

759. Mr. Speaker Sir, the growth of illicit trade in particular cigarettes,
compounded contraband cigarettes produced in legally

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 registered factories under registered brands, decelerates the
growth of revenue to the Fiscus since it results in evasion of
excise tax.

760. A digital platform that provides traceable and authentic data in

real time on locally manufactured goods would be beneficial
to the Fiscus.

761. Government, will, thus, explore implementation of a digital

platform on locally produced goods, in particular, cigarettes.

Tax Administration

Tax Exemption on Agreements Entered by Government

Ministries and Agencies

762. Mr Speaker Sir, the legislation provides an option to grant tax

exemptions on personal income tax, non-residents’ tax on fees
and royalties to any other Government, international, regional
or foreign organization.

763. These provisions provide latitude for Government Ministries and

agencies to extend tax concessions in Agreements negotiated
with private entities other than Government Agencies, without
scrutiny of such Agreements, thereby eroding the tax base.

229
764. I, therefore, propose to limit the tax exemptions on personal
income tax, non-residents’ tax on fees and royalties to
Government-to-Government Agreements, provided that such
Agreements would have been adopted by the Government
upon the recommendation of the Public Agreements Advisory
Committee, in accordance with the International Treaties Act.

Debt Management

765. Mr. Speaker Sir, whereas debt management is strategic to

revenue performance, enforcing compliance, in particular,
small to medium enterprises is a challenge.

766. In order to assist in the collection of revenue where taxpayers

are uncooperative, a garnish may be placed on the client’s
bank accounts as well as with the client’s debtors.

767. However, due to the fact that small to medium enterprises

operate strictly on cash basis, this enforcement tool cannot be
utilised.

768. Furthermore, small to medium enterprises barely possess

meaningful assets where the expedited procedure for
attachment of assets could be applied. It is also a mammoth
task to monitor their business transactions, as they conceal
records from the Tax Administration.

230
769. I, therefore, propose a simplified processes to enforce payment
of tax as follows:

Seizure of Goods

770. Where stock in trade is seized, I propose to compel the trader

to register for VAT, where such trader meets the registration
threshold.

771. After the seizure of the goods, a written statement should be

obtained from the trader or the person who has custody or
control of the goods, stating the quantity and quality thereof.
Such goods shall be stored in a place approved by the
Commissioner.

772. In addition, the Commissioner shall, within 10 days after the

seizure, serve the owner of the goods or the person who has
custody or control of the goods immediately before seizure, a
notice in writing-

• Identifying the goods;

• Stating that the goods have been seized and the reason for
seizure; and
• Setting out the terms for the release or disposal of the
goods.

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 Tax Lien

773. I, further propose to authorize the Commissioner to appoint

agents to issue tax lien certificates which show the taxes owed
including any interest and penalties.

Temporary Closure of Business

774. Where a person liable to tax has failed to remit the amount
payable within the prescribed time, I propose that the
Commissioner be empowered to seal the business premises
of the trader. The goods shall be deemed to be attached and
at the disposal of the Commissioner.

Storage Devices

775. Mr Speaker Sir, under the current legislation, computers,

laptops or information storage systems are not specified as
items that are liable to seizure by the Commissioner.

776. In order to enhance the Tax Administration’s capacity for

investigation, I propose to include any storage devices with
capacity to store information under the items that can be
seized by the Commissioner.

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 Access to Transaction Data

777. Mr Speaker Sir, under the prevailing macroeconomic

environment, where opaque transactions have increased, it is
important that the Tax Administration risk profiles suspicious
transactions.

778. In order to manage the tax system efficiently, in particular,

where business is digitalised, I, propose that ZIMRA be allowed
to access financial transactions through integration of systems
with the financial sector.

Custodial Services Provided by Financial Institutions and

Security Companies

779. Whereas the multicurrency system has played a critical in the

market, however, the small to medium enterprises operate
exclusively in cash albeit without commensurate responsibility
on transparency, in particular to banking the cash receipts and
also paying taxes.

780. The current phenomena is that financial institutions and

security companies offer custodial services for cash in bank
vaults.

233
781. The Freedom of Information Act, however, prohibits companies
from providing information on users of vaults, hence it is difficult
to combat non-declaration of forex receipts. The service is
thus aiding tax evasion in particular foreign currency receipts,
where sales are not declared.

782. The challenge to the Tax Administration in their endeavour

to collect revenue is that the Commissioner can only open a
vault of a known taxpayer, under a court order. A garnish order
can, thus, not be placed against contents secured in the vaults
unless the quantum thereof is known.

783. In order to deter tax evasion, I propose that the Commissioner

be empowered to open Custody vaults at any time to ascertain
contents and that financial institutions and other companies
that offer custodial services receipt the contents of cash in
their custody.

Failure to Pay Tax on Due Dates

784. In order to cater for urgent service delivery to the public, tax
should be accounted for promptly. However, taxpayers take
advantage of the current legislation which excludes failure to
pay tax by the due date as an offence, hence do not pay their
dues in line with the prescribed date.

234
785. I, therefore, propose that taxpayers who fail to settle their dues
within the prescribed timeframe shall be guilty of an offence and
liable to a fine not exceeding level seven or to imprisonment
for a period not exceeding three months or to both such fine
and such imprisonment

786. Alternatively, property of taxpayers who commit such offenses

will be attached.

Alignment of Tax Due Dates: Presumptive Taxes

787. Mr Speaker Sir, presumptive taxes are payable on a quarterly

basis. However, different payable dates are applicable on
various sectors.

788. In order to ease the administrative burden, I propose that the

payment date for presumptive taxes be due on the same date,
that is, within ten days after the end of each quarter.

VAT Fiscalisation

789. Mr Speaker Sir, in order to mitigate fraudulent VAT claims,

ZIMRA has implemented the Fiscalisation Data Management
System (FDMS), that is, the Back-End System for the purposes
of:

235
 • Receiving and managing data from physical and virtual
fiscal devices;
• Detecting fraudulent VAT input tax claims;
• Managing approved suppliers and taxpayers’ fiscal devices;
• Complementing VAT returns processing and;
• VAT refund management.

790. Furthermore, the Tax Administration has put in place the

necessary infrastructure for the implementation of Virtual
Fiscalisation Solution, hence, physical fiscal devices will be
phased out, in order to ease the burden on the traders.

791. In order to ease the cost of doing business, I propose to

regulate fees charged by approved suppliers on the supply,
support and maintenance of fiscal devices.

Offenses and Penalties

792. Mr Speaker Sir, whereas the effectiveness of VAT Fiscalisation

is dependent on tax compliance, a significant number of
operators, however, continue to flout the regulations, hence, I
propose the following mitigatory measures:

236
 Failure to Issue Fiscal Invoices or Receipts

793. I propose that failure to issue a fiscalised invoice or receipt be

an offense liable to a fine of US$1 000 or equivalent in local
currency.

Failure to Acquire or Use Electronic Fiscal Device

794. In addition, I propose that any operator who fails to acquire or

use electronic fiscal device be liable to the following;

• Penalty of US$1 000 or equivalent in local currency; and

• A civil penalty of US$25 or equivalent in local currency per
point of sale, for each day the Operator remains in default,
not exceeding a period of one hundred and eighty-one
days. Provided that the Commissioner shall have power
to waive the payment or refund the whole or part of any
penalty prescribed; and
• If the operator continues to be in default after the specified
period, such operator shall be guilty of an offense and liable
to a fine not exceeding level seven or to imprisonment for
a period not exceeding twelve months, or to both such fine
and imprisonment.

Failure to Comply with Interface Requirements

795. Furthermore, I propose that any Operator whose device(s) is

not interfaced within 30 days from the date of registration shall:

237
796. be liable for a penalty of US$25 per point of sale or equivalent
in local currency, for each day the operator remains in default,
not exceeding a period of 181 days:

797. If the Operator continues to be in default after the specified

period, such operator shall be guilty of an offence and liable
to a fine not exceeding level seven or to imprisonment for a
period not exceeding twelve months, or to both such fine and
imprisonment.

Tampering with Electronic Fiscal Devices

798. I also propose that:

• any Operator who deliberately tempers with an Electronic

Fiscal Device be lliable to a penalty of US$1 000 or
equivalent in local currency per point of sale, or three (3)
times the amount taxes involved, whichever is higher; and
• Where the Operator continues to be in default, such
operator be liable to a fine not exceeding level seven or
imprisonment for a period not exceeding twelve months, or
to both such fine and imprisonment.

Failure to Demand Fiscal Invoice/Receipt

799. I propose that any person who fails to demand, retain or

produce, as proof of purchase, a fiscal receipt or invoice, or

238
 fails to report denial to issue a fiscal receipt or invoice, such
goods be liable to seizure.

800. In addition, I propose that the Commissioner be empowered to

release goods, in whole or part of the goods seized if the operator
produces a fiscal receipt or invoice as proof of purchase within
24 hours from the time of seizure, otherwise such goods shall
be forfeited or disposed without compensation or reinstitution
by the Commissioner.

Failure to Deliver, Configure or Install Electronic Fiscal Device

by Approved Supplier

801. In addition, I propose that any Approved Supplier who fails to

deliver, configure or install fiscal devices within seven (7) days
of receiving an order and full payment shall be liable to:

• a penalty of USD$100 or equivalent to local currency per

day ordered and fully paid for each day of the approved
supplier remains in default, not exceeding a period of one
hundred and eighty-one (181) days;
• a fine not exceeding level seven or imprisonment for a
period not exceeding twelve months or to both such fine or
imprisonment, where the approved supplier continues to
be in default after the period specified.

239
802. I also propose that the Commissioner be empowered to waive
payment or refund the whole or part of any penalty prescribed.

Failure to Attend to Faults

803. In addition, I propose that any approved supplier who fails to

attend to faults and errors reported by users of fiscal devices
supplied within seven (7) days from the date the error was
reported be liable to a penalty of US$25 or equivalent in local
currency for each day the fiscal device remains unattended, in
error or faulty up to a maximum of 181 days.

804. Furthermore, where the Approved Supplier continues to be

in default after the period specified, he or she shall be liable
to a fine not exceeding level seven or to imprisonment for a
period not exceeding twelve months or to both such fine or
imprisonment.

Offences Where No Specific Penalty Is Provided

805. I also propose that any Operator who commits an offence to

which no specific penalty is provided, be liable to a fine not
exceeding level seven or to imprisonment for a period not
exceeding three months or to both such fine and imprisonment.

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 Features of Fiscal Tax Invoices

806. Mr Speaker Sir, the current features fiscal invoices do not

include Tax Identification Number (TIN) and Business Partner
Number (BP), hence, the desired features cannot be enforced.

807. I, therefore, propose to replace the registration number with

Tax Identification Number and Business Partner Number, as
well as provide for features that include electronic signatures,
authentication codes and quick response codes for verification
of the Fiscal Tax Invoices.

Value Added Tax on Imported Services: Time of Supply

808. The time of supply rules specify the time the service is
performed to facilitate the payment of Value Added Tax.

809. Clarification on the time of supply on imported service is,

however, not provided.

810. For the avoidance of doubt, I propose that the supply of

imported services, be deemed to take place;

• at the time an invoice is issued by the supplier or the

recipient in respect of that supply; or

241
 • the time any payment of consideration is received by the
supplier in respect of that supply; or
• the time the service is performed; whichever time is earlier.

Invoice Issuance: Prescribed Amount

811. Current legislation requires that fiscal tax invoices be issued

within 30 days from date of supply, where the prescribed
amount to which an invoice can be issued is pegged at US$10.

812. Some businesses are not issuing invoices on the pretext of

that the amount is below the set threshold, hence the majority
of customers are not issued fiscalised invoices.

813. Whereas it is mandatory for VAT registered taxpayers to issue

invoice within 30 days from the date of supply, however, there
is no obligation to issue invoice or penalty for not issuing
invoice under Income Tax.

814. I, therefore, propose that every Operator be required to issue

an invoice when a supply is made.

815. I, further propose to remove the requirement to issue an invoice/

receipt within 30 days after the time of supply. Consequently,
all transactions will be issued with a fiscal invoice at the time
of supply.

242
 Withholding Taxes: Due Date

816. The frequency of payment of non-resident fees, royalties and

foreign remittances increase the administrative burden to both
the taxpayer and the tax administration, since the respective
withholding taxes should be remitted to ZIMRA within ten days
of payment.

817. Registered Operators may end a tax period 10 days before or

after the last day. This poses an administrative challenge in
reconciling sales for a given period and also creates a loophole
which is subject to abused.

818. I, thus, propose that the submission date falls on or before

the tenth day of the month following the month in which such
payment or remittance is made.

Monetary Amounts of Specific Taxes Collected in Local

Currency

819. Mr Speaker Sir, the Taxes Acts provide monetary amounts

collectable in local and other currencies.

820. The local currency monetary amounts were last reviewed in

August 2022, hence, are no longer in line with macroeconomic
developments.

243
821. I, therefore, propose to review all monetary amounts and taxes
stated in local currency in the Taxes Acts to be denominated
in foreign currency, albeit, payable in local currency at the
prevailing exchange rate.

ZIMRA Board

822. Operations of the Zimbabwe Revenue Authority are controlled

and managed by ZIMRA Board.

823. The Board in terms of the Zimbabwe Revenue Authority Act

is comprised the Secretary of the Ministry responsible for
Finance Economic Development and Investment Promotion;
the Commissioner-General; and not more than eight other
members appointed, by the Minister.

824. The board members were appointed on the basis of their

knowledge and experience in finance, commerce, economics,
taxation, human resource management and legal expertise.

825. In view of the huge responsibility expected from the board in

the quest to increase contribution of revenue to the fiscus, I
propose to increase the number of Board Members from nine
to eleven.

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 Legislative Amendments

826. Mr Speaker Sir, a number of legislative changes were made

during the year 2023. However, such amendments, which
include amendment of tax rates, require confirmation by
Parliament through the Finance Bill.

Intermediated Money Transfer Tax

Outbound Foreign Currency Transactions

827. The 1% levy on foreign currency transfers is one of the policy

measures that were implemented by Government with a view
to raise resources to service the debt.

828. Outbound foreign currency payments from funds obtained

from the Auction Foreign currency or the interbank market, up
to a maximum of US$50 000 per transaction are, thus, subject
to the levy.

829. To enhance the revenue that is ring-fenced for debt service,

I propose to remove the maximum amount payable per
transaction.

830. However, current exemptions remain applicable.

245
831. Honourable Members would be aware that the levy was
introduced through subsidiary legislation under the Exchange
Control Act, hence, I propose that the levy be amalgamated
under IMTT.

Domestic Foreign Currency Transactions

Waiver for Payment of Wheat, Maize and Small Grains

832. In order to guarantee an uninterrupted supply of grain at

competitive prices, I propose to waive IMTT for wheat, maize
and small grains paid by Grain Marketing Board and other
approved buyers.

Gold Backed Digital Token Transactions

833. In order to promote the use of the new domestic instrument, I

propose to reduce the IMTT to 0.5%.

Mining Royalties in Kind: Designation of Collection

Agency

834. Mining royalties are currently collected by Financial Institutions.

Royalties in kind on Gold, Diamonds and precious stones
were also recently added on the list of royalties collected by
financial institutions.

246
835. However, financial institutions have encountered challenges in
collecting mining royalties in kind, since they require physical
collection, security, insurance, and expertise on valuation.

836. I, therefore, propose to designate an agent for collection of

royalties in kind.

Value Added Tax

Betting and Gaming

837. Betting and Gaming revenue is levied and receipted by the

holder of a temporary casino licence in terms of the Casino
Act, during the validity of the licence.

838. The current legislation refers to the Casino Act as the

charging act, which however has since been repealed thereby
invalidating the tax.

839. I propose to replace the Casino Act with the Value Added Tax
Act.

Payment of Interest in Kind

840. Mr Speaker Sir, where interest accrues on royalties in kind, I

propose that settlement be made in kind.

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CONCLUSION

841. Economic reforms being implemented under the Second

Republic are beginning to bear fruit, as evidenced by the
economic growth being witnessed across all the sectors of the
economy. This is being confirmed by the evaluation exercise
of the Transitional Stabilisation Programme and the NDS1
Mid-term review, which is a paradigm shift from the past of
non-implementation of policies, hence, the success of current
policies.

842. The challenge before us is to Consolidate the Economic

Transformation already underway, to ensure that the benefits
accrue to every Zimbabwean, in line with the spirit of leaving
no one and no place behind.

843. Change is inevitable but transformation is a choice (Heather Ash

Amara), therefore, while we celebrate the successes recorded
so far, there is still a lot of work ahead of us to consciously
implement transformational economic policies, which have a
positive impact on the majority of citizens, especially the poor
and the marginalised societies.

844. The desired economic transformation is a responsibility of all

stakeholders, especially Government, business and labour,

248
with each playing their critical role. On its part, Government
is prepared to fully play its role of providing an enabling
environment, through ease of doing business reforms,
investment in public infrastructure and provision of effective
public institutions.

Hon. Prof. M. Ncube

Minister of Finance, Economic Development and Investment Promotion
30 November 2023

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