Foreign Currency Receipts Surge

Zimbabwe’s foreign currency receipts has increased by 32% to US$5,09 billion during the eight months ended August 7, 2021.

During the same period last year receipts stood at US$3,85 billion.

Finance minister Mthuli Ncube told an African Development Bank (AfDB) virtual meeting recently that industries shook-off the effects of a difficult 2020 to ship more products to the international markets.

Due to the pandemic, governments have significantly relaxed restrictions to help economies recover, leading to the stronger export performance.

Ncube said revenues into the fiscus, at $230,4 billion during the first seven months, were slightly below the $241,6 billion expenditure, leading to  $11,2 billion budget deficit.

“The Reserve Bank has reported foreign currency receipts increase of 32% to US$5,09 billion as of 7 August 2021 compared to US$3,85 billion during the same period in 2020.

“The critical Harare-Beitbridge road is being developed, Beitbridge Border Post is currently being modernized,” said Ncube.

Ncube added that government was utilizing last year’s US$100 million budget surplus to procure COVID-19 vaccines.

“To date, government has spent over US$95 million on procurement of 11,8 million vaccines from various countries, the vaccination rollout program is going on very well, we hope to reach 60% head immunity by year-end, mobilization of additional resources is underway to ensure that the target population is fully vaccinated.

“Government acknowledges that the support from the bank (AfDB) and other development partners has changed lives in various communities, leading to improved household incomes, poverty reduction and better livelihoods, among others,” Ncube added.

AfDB country manager Moono Mupotola told the meeting that the bank’s board of directors approved our strategy for Zimbabwe, which will run until 2023 in May.

“The country brief/strategy is built around two pillars. Supporting Zimbabwe’s private sector, which has been severely impacted by years of economic distress.

“The focus of our strategy is to strengthen resilience and build competitiveness by improving the private sector’s productive capacity through an improved business climate, ecosystem and infrastructure,” said Mupotolo.

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