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Minister Chinamasa

Business Editor—
THE United Nations (UN) has endorsed Zimbabwe’s economic reform measures and pledged increased support for the country to facilitate domestic growth. In a statement on the ongoing economic recovery and growth measures, the UN applauded the fiscal reforms, re-engagement with global finance houses and proposed country debt resolution strategies.

“We, the United Nations would like to pledge our full support to the on-going economic and budgetary reform measures being implemented by the government to stimulate growth and improve social and economic well-being of the people of Zimbabwe,” the global body said.

It admitted that Zimbabwe has been facing numerous challenges as a result of a sluggish growth, low international commodity prices, job losses and poverty, increasing informal activity, low agriculture output due to droughts and low foreign direct investment.

The UN said persistent adverse weather patterns were likely to leave 1.5 million people in need of food assistance during the peak lean season of January to March 2016. This could be further aggravated by the forecasted El Nino effect, set to induce a strain on the economy.

Huge recurrent expenditure, which gobbles up to 90 percent of the national budget, continues to crowd out capital, social and development expenditure. With Finance and Economic Development Minister Patrick Chinamasa due to present the 2016 budget this week, there is increased demand from the public for social support and services funding and tax relief.

Despite the challenges, the UN has noted significant progress in certain areas mainly restoration of basic social services. Latest surveys supported by the UN such as the 2014 Multiple Indicator Cluster Survey and the MDGs progress report, indicate that there is notable decline in infant mortality, high education enrolment at above 90 percent and high literacy rate of 99.6 percent. New HIV infections also continue to drop.

Sustaining and improving on these gains, the global body said, will require increased allocations and disbursements from the national budget.

Development partners have also been providing support in health, HIV, education, water and sanitation, social protection and women, youth and empowerment as well as institutional strengthening in areas of good governance.

“In light of the situation, continued strong engagement of development partners and maintaining the level of development assistance remains critical. However, as the ongoing economic recovery and growth reform measures start to bear fruits, the country would need to take measures to sustain these efforts,” said the UN.

Presently the government is seized with rationalising its expenditure with a number of audits being conducted in an effort to create sufficient space for capital and development support. “We look forward to continuing to work with the government as it embarks on the full implementation of the measures contained in the Mid-Year Fiscal Review 2015.

“We reiterate our support for the formulation and implementation of policies that will positively contribute to improving the well-being of all Zimbabweans,” said the UN.