Zimbabwe GNU launches three year economic policy

Policy Documents

Three Year Macro-Economic Policy & Budget Framework pg 1-86
PDF Download – 23 December 2009

Three Year Macro-Economic Policy & Budget Framework pg 87-142
PDF Download – 23 December 2009

Three Year Macro-Economic Policy & Budget Framework pg 143-268
PDF Download – 23 December 2009

Three Year Macro-Economic Policy & Budget Framework pg 269-330
PDF Download – 23 December 2009

Three Year Macro-Economic Policy & Budget Framework pg 331-382
PDF Download – 23 December 2009

The economic policy framework, also called Short-Term Emergency Recovery Programme (STERP) II, will be a bridge between STERP launched in March this year and the Medium-Term Economic Development Plan.

Drawing from experiences and lessons from STERP during 2009, the economic plan seeks to finalise some of the agendas and its business in the next three years.

The policy framework will see the continuation of programmes beyond 2009, while there was need for Zimbabwe to move its economic reforms from macro-economic stabilisation towards a sustainable rapid growth and developmental path.

Officially launching STERP II and Budget Framework in Harare yesterday, Deputy Prime Minister Thokozani Khupe urged the international community to assist the Government in its economic recovery and growth endeavours.

"I am advised that the funding requirements for STERP II are huge. The Government will, through the Budget, strive to finance some of the programmes and projects under this framework over the next three years.

"However, our own resources will not be adequate to close the financing gap between expenditures and domestic revenues.

"I, therefore, take this opportunity to appeal to the international community to close this financing gap by way of foreign direct investment and concessional loans and grants," she said.

DPM Khupe said Zimbabwe was a sleeping giant that needed international assistance to realise its massive potential for the benefit of the nation, region and international community.

She said STERP II would build on the macro-economic stability achieved to date.

"It will focus on the recovery of the economy in terms of the Gross Domestic Product, employment creation, infrastructure rehabilitation and development, sustainable utilisation of the country’s natural endowments and the achievement of a robust balance of payments position," she said.

The DPM said the restoration of capacity utilisation in the productive sectors could help in achieving macro-economic stability.

"This framework outlines the policies that will be implemented to sustain growth in the areas of agriculture and food security, mining, manufacturing and tourism."

DPM Khupe said growth in output in the productive sector would be underpinned by the implementation of market-friendly policies in areas of Trade and Export Promotion, Research, Science and Technology Development and Small and Medium Enterprises Promotion.

She said investment in basic infrastructure in key enablers such as power generation, distribution and transmission, water and sanitation, transport and communication, was critical to the success of the economic recovery initiatives.

"Innovative ways of funding projects in these key economic enablers is of paramount importance.

"Government will, during the period, develop a legal institutional and policy framework that is intended to create a conducive environment for the implementation of public-private partnerships projects."

DPM Khupe said this was in recognition of the fact that budgetary resources, through the

Capital Development Budget, would not be adequate to finance all investment requirements in the economy.

She said the quality and quantum of the human resource base was a critical determinant for a country’s sustainable economic development.

"The restoration of basic social services is meant to develop the human capital base of the country by allocating adequate resources to the development of the health and education sectors.

"Consequently, attempts to achieve budgetary allocations to the health and education sectors in line with Sadc, UNDP (United Nations Development Programme) and other international standards will be vigorously pursued during the framework period."

The measures to restore and develop the human capital in Zimbabwe, DPM Khupe said, would be complemented by policies meant to enhance service delivery by local authorities, integrating rural areas into the mainstream economy and protecting and developing the environment.

DPM Khupe, however, called on Zimbabweans, in Government and the public sector, to observe the rules of integrity and accountability in the use of resources.

"I want to take this opportunity to appeal to the nation to desist from corruption, economic crimes and misappropriation of funds as these will derail the achievement of the objectives we have set ourselves under this policy framework," she said.

Speaking at the same occasion, Finance Minister Tendai Biti said although the last nine months since the launch of STERP had their share of problems, a lot of achievements had been made.

He, however, said 2010 should be the year for Government to achieve more.

"2010 should not be a year of excuses and Government should deliver.

"This year parties to the Global Political Agreement had to find trust among themselves, like in any marriage."

Minister Biti said it was fundamental that the inclusive Government remained to create an environment for foreign investment to grow to an expected 30 percent.

He, however, announced that a lot of progress had been made in the current negotiations on the full implementation of the GPA.

Achievements recorded since the launch of STERP in March included taming inflation and a positive GDP growth of 4,7 percent.

The launch was attended by scores of Government officials, among them Defence Minister Emmerson Mnangagwa, Media, Information and Publicity Minister Webster Shamu, Lands and Land Resettlement Minister Herbert Murerwa, Regional Integration and International Co-operation Minister Priscilla Misihairabwi-Mushonga.

Also present were ministers of Health and Child Welfare Dr Henry Madzorera, Information and Communication Technology Nelson Chamisa, Public Service Eliphas Mukonoweshuro, other senior Government officials and captains of industry.