ZIMBABWE Minister of Finance and Economic Development Professor Mthuli Ncube, delivered his 2020 National Budget Speech in the National Assembly in Harare on Thursday 14th November 2019/////CRIMSON TAZVINZWA
Since 2007 Zimbabwe’s economy has been reeling from hyperinflation, making the country’s ‘sometimes currency’ worthless. The difficulty of any minister of ‘money’ anywhwere in the world is to be able to work out a comprehensive national budget out of short-term or temporary currency. Zimbabwe has changed currencies 3 times this year (2019) alone. The main reason for this; nobody has a clue even the president. Who knows; next week the country could – God forbid – have a new currency yet again in as many weeks. This is the unpredictability that riles investors. Investors do not operate on ‘now you see it, and now you don’t’ economic modus operanda. There is an ubiquity of peaceful, enabling environments from which to do business on this vast planet earth, and Zimbabwe has no preferential treatment – why should she? You have to create competitive environment – this is called competitive investment advantage … Therefore, merely dishing out ‘Zimbabwe is Open For Business’ mantra and the presidential nationalistic rainbow scarf is not enough to attract the ever so evasive moneymaker, especially given the carcaphoney of disorder, indisciplined police – brutality, suppression of divergent viewpointsand – and what of entrenched corruption.
The government should tentatively stop dishing out steroids and drugs to law enforcers – police.
Apart from currency stability investors look at the economic environment; the ease with which to do business, political stability and the prevalence of the rule of law.
However, Zimbabwe Government’s allocation of upwards of ZWL$422.7m for irrigation and ZWL$380m for commercial farmer compensation in the 2020 budget. should be commended; though this should be taken with a pinch of salt given Zanu (PF)’s history of reneging on promises, negating the fact that political reform ie cementing the rule of law and the constitution, respect for the opposition and civil society are pillars of any development anywhere.
Zimbabwe – World Happiness Index
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Zimbabwe – World Happiness Index
Happiness Ranking,World Happiness Ranking
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- The 2% intermediated money transfer tax stays, but the tax-free threshold is now ZWL$100, from ZWL$20 previously. The maximum payable by corporates is now ZWL$25,000 from ZWL$15,000 currently for transactions above ZWL$1.25 million.
- Government plans to spend ZWL$540 million on the public transport subsidy scheme running under Zupco
- Government has set aside ZWL$500 million for a venture capital fund to finance start-up projects that will mostly target young entrepreneurs.
- Govt allocates ZWL$422.7m for irrigation and ZWL$380m for commercial farmer compensation in the 2020 budget.
- The tax-free portion of retrenchment packages will be increased from ZWL$10,000 to ZWL$50,000, or one-third of the package, to a maximum ZWL$80,000.
- The tax-free threshold has been raised to ZWL$2,000 per month, from ZWL$700, wef January 2020.
- The tax-free bonus has been increased from ZWL$1,000 to ZWL$5,000 wef November 1, 2019
Minister Ncube presented the full 2020 National Budget Statement in a speech to parliament Thursday, November 14, 2019