Hypothetical presentation of my Finance and Investment Strategy 2019-2024. The presentation is increasing public awareness about the importance of understanding finance and investment and the challenges that Ministers of Finance encounter as they allocate resources. The presentation made me appreciate the efforts that the current Minister of Finance Prof Mthuli Ncube is doing in trying to stabilise the economy through the Transitional Stabilisation Program (TSP) from 2018-2020. Comments from the public are welcome.

1. ZIMBABWE FINANCE AND
INVESTMENT STRATEGY 2019-
2024
Mr Samson Saruchera
Ministry of Finance and Development Official(Hypothetical)

2. INTRODUCTION
 Zimbabwe population of 16.5 million in 2017
 GDP 2018 $31 Billion according to the World Bank
 Zimbabwe is a lower-middle income country with a GNI per capita of
$1790(World Bank 2018)
 Zimbabwe’s 2030 vision is attaining a upper-middle Income status with GNI
per capita of between $3996 to $12375.
 The following graph from IMF report October 2018 shows a decline in
productivity from 1980 and erosion of quality of public service

3. Introduction contd
Zimbabwe: Economic Update Patrick Imam International Monetary Fund October
2018

4. ESTIMATED FINANCING NEEDS
 International debt and capital not available to Zimbabwe due to sanctions.
 Zimbabwe depending on domestic resource mobilisation and donor
organisations.
 The expected revenue in 2019 is $6 Billion
 Zimbabwe is fully committed to achieving SDG’s by 2030.
 The economy needs to grow by 7% annually to meet the SDG’s.

5. SOURCES OF FINANCE
AVAILABLE
• Main source of finance is Personal remittances.
• Due to many Zimbabweans who migrated in search of
greener pastures
• FDI is very low due to unconducive business
environment characterised by inflation, liquidity crisis,
no currency (previously) etc
Personal
Remittances,
61%
FDI, 9%
ODA, 26%
Other, 4%
https://public.tableau.com/views/Bigpictureoftotalresourcereceiptsbyyear/Byyear?:embed
=y&:display_count=yes&publish=yes&:showVizHome=no

6. ACCESS TO SOURCES OF FINANCE
DOMESTIC PUBLIC
 Introduce tax on tobacco, alcohol and natural
resources.
 Strengthen tax collection and administration of
already existing taxes;
• Health levy 5% of airtime purchased
• Aids Levy 3% of Income tax for purchasing AIDS
drugs.
• Corporate, VAT and Income Tax
 Cut government expenditure by cutting
number of ministries and removing deputy
ministers.
 Transparency and accountability on the
government side to encourage tax
compliance by the public.
 Plugging illicit financial outflows potential
income of $1.8 billion according to the U.N
DOMESTIC PRIVATE
 Increase the finance breadth by increasing
number of people who open and maintain
bank accounts.
 Reduce bank charges and service fees.
 Increase interest rates on savings to encourage
long term savings.
 Governance and Transparency of pension
funds, insurance companies and asset
management companies.
 Expand the insurance industry.
 Access funds from WBG earmarked for private
sector investment e.g. IFC Private Sector
Window, MIGA finance.

7. ACCESS TO FINANCE
INTERNATIONAL ODA
 Identify income generating
sustainable development projects
to support.
 Retooling of the local
pharmaceutical manufacturing
plants with options of partnership
with foreign pharmaceutical
manufacturers to manufacture
ARV’s , anti-malarials and anti-TB’s
for the SADC region and beyond
thereby generating foreign
currency.
FDI & PERSONAL REMITTANCES
 “New Dispensation” relaxed the
Indigenisation Bill which now allows
foreigners to own businesses except
strategic industries like mining of
platinum and gold.
 Incentivise Zimbabweans in the
diaspora to partner and form
companies and invest in Zimbabwe.
 Offer mortgages and foreign
currency based pensions to people
in the diaspora.
 Increase exports of value added
goods.

8. WORKING WITH MDB’s TO ADDRESS
BARRIERS
 1980-2000 WBG assistance $1.6 Billion.
 Suspended in 2000 due to non-payment of arrears with a debt of $1.4 Billion of which $1.1 Billion in
arrears.
 Support has only been technical and trust funds
 Need to agree on a debt and arrears payment plan.
 Technical assistance on ring fencing various taxes e.g. toll fees should be strictly used for
development and maintenance of road infrastructure.
 Technical assistance to improve the “Ease of Doing Business” ranking.
 Need to align laws with the new Constitution to give investors confidence on rule of law.
 Support from MDB’s to set up sustainable impact investment programs that are environmentally
and climate friendly;
• Solar plant
• Biogas production plant
• Agriculture

9. WORKING WITH MDB’s TO ADDRESS
BARRIERS
 According to Chitokwindo, Sibert & Mago, Stephen & Hofisi, Costa. (2014).
Financial Inclusion In Zimbabwe: A Contextual Overview. Mediterranean
Journal of Social Sciences. 5. 10.5901/mjss.2014.v5n20p415. 65% of
Zimbabweans stay in rural areas and are not banked and do not have
access to financial resources.
 MDB’s can assist by looking for investors to invest in rural banks which offer
loans and grants to rural business people and Micro Small to Medium
Enterprises.
 The rural business people can also insure their businesses against losses.
 The government can work with private sector investors to develop
infrastructure like roads, electricity, running water etc.
 Privatise parastatals.

10. BIBLIOGRAPHY
1. Financing Sustainable Development Report 2019: pages 11-28
2. https://public.tableau.com/views/Bigpictureoftotalresourcereceiptsbyyear/
Byyear?:embed=y&:display_count=yes&publish=yes&:showVizHome=no
3. https://data.worldbank.org
4. Chitokwindo, Sibert & Mago, Stephen & Hofisi, Costa. (2014). Financial
Inclusion In Zimbabwe: A Contextual Overview. Mediterranean Journal of
Social Sciences. 5. 10.5901/mjss.2014.v5n20p415
5. Zimbabwe: Economic Update Patrick Imam International Monetary Fund
October 2018
6. https://www.newsday.co.zw/2018/12/economy-should-grow-by-7-to-meet-
sdgs/