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Business Reporter
GOVERNMENT will this week start disbursing part of the negotiated $500 million foreign exchange facilities to meet growing demand by the productive sectors so as to bolster quick economic transformation, President Emmerson Mnangagwa has said.

In his state of the nation address in Harare on Tuesday he said his administration has committed to prioritising economic development as a strategic response to the pressing need to boost growth.

Dealing with the foreign exchange supply is at the centre of interventions being implemented by the Government with focus on rapid modernisation and industrialisation.

“In order to bring sanity in the foreign currency market, my Government through the Reserve Bank of Zimbabwe, has negotiated a number of foreign exchange facilities amounting to US$500 million that are intended to meet the growing demand for foreign currency by business and the public in general. Some of these facilities shall be disbursed this week to meet the expanding demand for foreign currency that continues to be sustained by fiscal imbalances, which my Government has made a great commitment to redress,” said President Mnangagwa.

He said his Government will maintain use of the multi-currency system until the current negative economic fundamentals have been addressed to give credence to the introduction of the local currency.

“The economic fundamentals that need to be met are a sustainable fiscal position, foreign currency reserves of between three to six months of import cover and sustainable consumer and business confidence. These economic fundamentals are yet to be met to justify the introduction of our own currency,” said the President.

He called for increased public and private sector partnership towards bringing about economic order and growth; job creation and end to corruption as well as improving social services. This will be guided by accelerated effort towards stabilising the macro- economic environment and creation of fiscal space.

The President demanded high performance culture within all public entities and warned civil servants against lethargic and non implementation of Government policies, projects and programmes.

“Our bureaucrats must be committed to deliver. We will vehemently fight bureaucratic red tape and bottlenecks,” he said.

President Mnangagwa also said bold measures were being taken to boost manufacturing sector production capacity and scaling up the value addition and beneficiation drive to ensure Zimbabwe enters the regional, continental and global value chains. Similarly, interventions are being rolled out in enhancing robust output in key sectors such as mining, agriculture, infrastructure arm and tourism. The President acknowledged initiatives by SMEs, women and youth and pledged increased Government support to ensure they realise their potential and contribution to mainstream economy.

This will be achieved through improvement on the institutional regulatory framework, deliberate and sensitive policies that will tap into the entrepreneurial zeal and business dynamism of budding entrepreneurs.

Other comprehensive plans include increased international re-engagement, foreign debt clearance, review of MoUs signed with other Governments and ensuring maximum benefit to the country.

“In addition, Bilateral Investment Promotion and Protection Agreements will be reviewed to promote investments from across the world,” said the President.

These interventions, he said, are anchored on the vision to make Zimbabwe a middle-income economy with a per capita income of US$3 500, increased investment, decent jobs, broad based empowerment, free from poverty and corruption by 2030.