President Emmerson Mnangagwa, at the 39th Anniversary of the Zimbabwe Defence Forces Day yesterday, said the Transitional Stabilisation Programme (TSP) which he describes as “painful” is still ongoing.
Finance and Economic Development Minister, Professor Mthuli Ncube introduced TSP to grow the economy, through expanding the tax base and cutting down government expenditure, a process called austerity measures. The 2 cent a dollar transaction tax is a result of the austerity measures also part of the TSP.
“The Transitional Stabilisation Programme, which promotes production and restricts Government spending, is ongoing with its attendant reform measures,” The President said.
“The medicine to cure our economic ailment will be bitter and often painful, whether within a household or at state level. But the darkest hour comes before dawn.”
TSP runs from October 2018 to December 2020 drawing its policy thrust from Vision 2030.
The programme is expected to provide the necessary prelude to the two Five Year Development Strategies that will run from 2021-2030.
“Indications are that our economic fundamentals are now in place to facilitate an upward development trajectory,” Mnangagwa said.
“This has also been confirmed by the International Monetary Fund, World Bank and other International Financial Institutions.”
Zimbabwe’s leader, however, said some in the business community have taken the difficult transitional phase of the economy as an opportunity to unjustifiably enrich themselves.
“There is no justification, whatsoever, the high prices of goods and services that we have witnessed in recent months,” Mnangagwa said.
Current inflation in Zimbabwe according to critics is caused by the budget deficit; fuel prices; imported food inflation; profiteering and currency debauchery (a corruption of currency).