The Sunday Mail
Freedom Mupanedemo
Midlands Bureau
The dawn of the Second Republic, which was ushered in following Operation Restore Legacy in November 2017 and subsequent general elections in 2018, saw the introduction of a raft of measures under the Transitional Stabilisation Programme (TSP) to stabilise the economy and put in on a sustainable growth path.
Bold and painful measures were adopted by the new administration as it tried to reform the economy, which was plagued by the twin deficits — the fiscal deficit and the current account deficit — and burdened by huge domestic and external debts.
The TSP runs its full course by year-end.
However, authorities feel the media has not done enough to highlight successes recorded under the programme.
Last week, Government organised a one-week media workshop to reflect on the successes and challenges faced by the TSP as the country moves on to the successor economic blueprint, the National Development Strategy 1 (NDS1), whose implementation begins on 1 January.
The major highlight of the media workshop, which was graced by Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa, was Government’s concern that the media failed to comprehensively unpack the successes, targets and challenges of the short-term economic blueprint.
In her keynote address, Minister Mutsvangwa said in the media the remarkable successes of the programme were quite apparent.
The economic rebound that the country is experiencing, she said, is a direct result of the TSP.
“Under the visionary leadership of President Mnangagwa, the Second Republic seeks to transform Zimbabwe into an upper middle income-economy society by the year 2030. The roadmap towards that included the TSP that began in 2018 and is ending this December. But as the media, are we playing our informative role and communicating to the public out there so that they appreciate what is TSP? We are ending the TSP and a good number of Zimbabweans do not even understand what it is,” she said.
The twin deficits have since been tamed as the country has been generating more than it is importing and spending less than it is collecting in revenues.
Minister Mutsvangwa said Government had also managed to eliminate shortages of fuel and basic commodities, while inflation had been contained.
“We have also managed to tame the ghost of inflation. There is now price stability, no queues for mealie-meal, fuel, or bread. We have also introduced an efficient and affordable public transport system under TSP,” she said.
MSU TOUR
Permanent Secretary in Vice President Kembo Mohadi’s Office, Reverend Paul Damasane said the media plays a key role in informing the nation on development and peace.
However, the majority of Zimbabweans were not aware of the TSP and its successes despite the fact that the country is now heading into the NDS1, he said.
“So, people need to understand what is TSP. Many people do not understand TSP and the reason is we are not engaging the people,” he said.
Rev Damasane said due to the Intermediated Money Tranfer Tax (IMTT), or 2 percent tax, the country had been able to fund its fight against Covid-19 and allocate funds for infrastructure development.
“When all of us heard about the 2 percent tax, how many of you were happy? The reason is because people were not informed, they didn’t understand the purpose and the manner in which it is going to benefit the people. But today, when you then look at what is happening in Zimbabwe vis-a-vis what has been happening within the region, you will realise that the 2 percent tax is doing wonders,” he said.
“Zimbabwe did not get even a single cent from the international community to fight Covid-19 but the rate of the pandemic is among the lowest in the region. This is because we used part of the 2 percent tax to finance those needs.
“Within the region, Zimbabwe is doing very well in terms of infrastructure development, yet we are not receiving any funding, we are doing all this through the 2 percent tax, so people need to be informed,” he said.
Director for Planning in the Ministry of Finance and Economic Development, Mr Innocent Madziva, said the TSP was generally a success but encountered some challenges in meeting some of its targets.
The old administration, he said, relied heavily on loans, most of which ended up choking Government.
“After elections in 2018, the next step by the new Government was to devise ways of turning around the economy, hence the introduction of a short-term TSP. The major challenge with the TSP was that the previous Government was thriving on borrowing and people enjoyed some stability, but the bill continued to balloon.”
He said the major success of the TSP was the introduction of the Zimbabwe dollar, which now gives the country a chance to grow its economy.
“We were facing quite a number of challenges in making sure that the forex currency supply was adequate because of the multi-currency system. The local currency brought about stabilisation, which will lay the platform for growth,” he said.
Mr Maveza said the foreign currency auction system, which was introduced on June 23 under the aegis of the TSP, has managed to achieve stability.
