Faith Nyasuguta
Zimbabwe’s Finance Minister, Mthuli Ncube (pictured), praised the nation’s resilience amid severe economic challenges, including the worst drought in 40 years and constrained access to international financial assistance. Despite these hardships, Ncube highlighted Zimbabwe’s remarkable strides in agriculture and resource management, predicting economic growth of 2% for the year.
In an interview with Bloomberg, Ncube expressed optimism regarding the nation’s economic outlook. He attributed the positive forecast to the government’s strategic investments in agriculture and water infrastructure, which include the construction of vital dams and the use of drought-resistant seed varieties. He stated, “The economy is set to grow 2%, even with the worst drought in 40 years.”
These efforts have positioned Zimbabwe to achieve self-sufficiency in wheat production, with an expected harvest of 600,000 metric tons. Ncube further noted plans to begin exporting wheat, marking a significant milestone in the country’s path toward agricultural sustainability.
Acknowledging the struggles many Zimbabweans continue to face, Ncube mentioned the ongoing support from European donors aimed at helping vulnerable families. He also emphasized the government’s focus on fiscal discipline to make the most of domestic resources, including plans to expand agricultural insurance programs in 2025, targeting vulnerable communities across 22 drought-affected districts.
Turning to Zimbabwe’s economic stability, Ncube discussed the role of the bullion-backed Zimbabwe Gold (ZiG) currency. He pointed out the strength of the local currency, which has gained ground against the US dollar due to improved economic fundamentals and robust reserves.
“There’s no reason why the currency shouldn’t remain stable. We have 13 billion ZiG worth of reserves compared to 12 billion ZiG in circulation,” Ncube stated, citing factors such as a projected budget deficit of just 1.4% of GDP and consecutive current account surpluses for six years.
When questioned about the potential of the ZiG replacing the US dollar, Ncube expressed hope but refrained from providing a timeline. “One day the Zimbabwe Gold would become the nation’s sole currency,” he said, underscoring the importance of strategic timing to avoid speculative pressures. “We can never pronounce the exact timing of that. But we have a road map. We’ve made it clear that one day it will become the sole domestic currency of the country.”
These developments reflect Zimbabwe’s commitment to economic reform and its pursuit of greater monetary independence.
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