Zimbabwe President Emmerson Mnangagwa unveiled a new five-year economic plan on Monday that he said is expected to deliver expansion of more than 5% through 2025.
The so-called “National Development Strategy 1,” replaces the Transitional Stabilisation Program, which Mnangagwa said had delivered “notable and critical successes.” While annual inflation is at 471%, it’s tapered off for three straight months and the Zimbabwean dollar has stabilized at around $82 per U.S dollar.
The new economic blueprint will also serve as a precursor to the national budget statement that Finance Minister Mthuli Ncube will present to lawmakers later this month.
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The new plan, known as NDS 1, will focus on “accelerated growth,” driven by agriculture, mining, manufacturing and tourism, Mnangagwa said.
The southern African nation, which owes more than US$8B to international financial institutions, still hopes to pursue an arrears-clearance program with the multilaterals including the World Bank, Ncube told reporters.
Other highlights:
- Fiscal deficits to be kept below 3% of GDP in line with targets set by the Southern African Development Community;
- Annual inflation targeted at 3% to 7% by 2025;
- Increasing international reserves to at least six months import cover by 2025;
- The creation of at least 760,000 formal jobs over the five-year period.
Source: Bloomberg