On November 16, 2020, Zimbabwe launched a new program to rebuild its economy called the National Development Strategy (NDS). Spanning the period 2021-2025, it will, among other things, create 760,000 jobs and achieve economic growth of 5%.
Zimbabwe has just launched a new five-year plan to revive its economy. This aims to move the country into the category of upper middle income economy by 2030.
Entitled National Development Strategy (NDS), it will, among other things, accelerate economic growth, improve public sector performance and build strategic infrastructure in the energy, ICT, transport and housing sectors.
This strategy, which succeeds the Transitional Stabilization Program (TSP) launched in 2018, will make it possible to achieve economic growth of around 5% on average between 2021 and 2025. It also aims to maintain a budget deficit that does not exceed 3%. of GDP, single-digit inflation, to increase international reserves to reach at least six months of import coverage compared to less than a month now and to keep debt below 70% of GDP.
As the country goes through an unprecedented economic crisis marked by galloping triple-digit inflation, a depreciation of the local currency and a major social and health crisis, the government of President Emmerson Mnangagwa (pictured) is still struggling to deliver on promises made in the start of his term.
The authorities now want to accelerate investments in agriculture, mining, electricity and manufacturing in order to create 760,000 formal jobs.
“The NDS1 will therefore be deployed under better economic conditions than the TSP and includes bold strategies and policies to catapult economic growth,” said President Mnangagwa during the launching ceremony of this program.
However, as international sanctions continue to weigh on the country, which suffers from a shortage of foreign exchange, questions remain about the authorities’ ability to finance this new program. For this year, the IMF expects the economy to grow at -4.5%.
Source Ecofin Agency