Industrialists welcome the 2021 budget | The Herald

Africa Moyo Deputy News Editor

Industrialists have described the 2021 National Budget as pro-production and people-centered, and agree that it is a good starting point to steer the economy in the next 12 months.

The Minister of Finance and Economic Development, Professor Mthuli Ncube, presented a budget of $ 421 billion, which aims to foster resilience and sustainable economic recovery.

Professor Ncube said that recent shocks in the form of droughts, cyclones and the Covid-19 pandemic have undermined Zimbabwe’s efforts to build physical infrastructure and the delivery of planned public services, hence the need to build resilience.

The 2021 Budget pays attention to priority areas such as inclusive growth, the development and support of productive value chains, optimizing the value of natural resources, social protection, engagement and reintegration, effective institutional development and governance. and strengthening empowerment through decision-making, infrastructure and knowledge to communities to address development gaps.

The national president of the Zimbabwe Grain Millers Association, Tafadzwa Musarara, told The Herald last night that the 2021 budget was positive.

“I think it’s pro-production and people-centered and it’s a good working document. It provides real strategic direction in terms of how the economy should function in the next 12 months, protecting key enablers and promoting production, ”Musarara said.

The President of the National Chamber of Commerce of Zimbabwe, Dr. Tinashe Manzungu, said: “It is a positive budget that seeks to revive the economy. It seeks to finance more sectors of the economy following the measures adopted by the Government such as the reactivation of agriculture.

“We are giving the economy a boost after challenges caused by unforeseen shocks, such as natural disasters, and we applaud this Budget, which appropriated some of our input and took note of our concerns.”

Former President of the Zimbabwe Confederation of Industries, Mr. Sifelani Jabangwe, said that, as industrialists, they liked the “emphasis on adding value and profit”.

“The Budget also commits to working on exchange rate stability and promoting fiscal discipline along with the consolidation of the currency auction system. There is also support for local procurement and the Buy Zimbabwe campaign, which I think is good for stimulating local production.

“The Budget also provides for special support for agricultural value chains, along with general support for infrastructure development that stimulates all industrial production,” said Mr. Jabangwe.

The Secretary General of the United Food and Allied Workers Union (UFAWUZ), Mr. Adiona Mutero, also said generally that the 2021 budget “looks progressive.”

“We see a bias towards health and education, which is positive.

“However, I don’t understand what these different taxes mean and their purpose.

“Maybe it was about time I scrapped the IMMT (2 percent). However, at the tax-free threshold on wages, that is an improvement, but a level of $ 15,000 could have left workers with some disposable income.

“And the tax-free bonus threshold, given the average income employees earn, I think is fine,” Mutero said.

Zimbabwe Retail Confederation Chairman Denford Mutashu said: “Fairly balanced attempt on the part of the honorable minister, extending attention to many equally needy areas. Unfortunately, Zimra’s ongoing directive for retailers and wholesalers and the entire rice value chain to pay VAT on rice dated before 2017 was left unattended, but it has negative effects on the supply and price of the product. The presumptive tax of US $ 30 on actors in the informal sector will increase the flow of income to the treasury.

“The allocation to industrialization is still negligible. Overall, the industry feels difficult and will soon engage the Minister to express our feelings after more extensive consultations with the industry. “

Industry and Trade Minister Dr. Sekai Nzenza said that through the 2021 Budget, Zimbabwe is now on the path to recovery driven by local production, a development that will minimize foreign exchange leakage through imports.

Professor Ncube said that economic growth is expected to recover in 2021 from the two-year consecutive decline to a record 7.4 percent, driven by a strong recovery in agriculture, mining, electricity, construction, transportation and communications, as well as finances and insurance.

Formal employment is projected to grow and around 150,000 formal jobs are expected to regain after being lost due to Covid-19.

Concomitant macroeconomic stability, improved electricity supply, a favorable agricultural season, and effective policy implementation will also help the growth and development agenda.