By Zivanai Dhewa
In his 2021 National Budget presentation, which ran under the theme “Building Resilience and Sustainable Economic Recovery,” Minister of Finance and Economic Development, Professor Mthuli Ncube predicted that 2021 will be a better year for our domestic economy, the Harare Post can report.
Coming from the effects of the Covid-19 Pandemic that not only saw the decline of Zimbabwe’s economy, but also saw global economies suffering from the blow, Minister Ncube projected a rebound of Zimbabwe’s economy.
“150 000 jobs are expected to be recovered after having been lost due to Covid-19 pandemic,’ said the Minister.
He attributed this massive job recovery to the benefits created by the Transitional Stabilisation Programme (TSP).
“2021 is definitely going to be a better year as we will recover from past shocks, benefiting from the foundations we have created under the TSP,” he said.
Breaking down the growth by sector, Prof Ncube projected an overall Gross Domestic Product Growth (GDP) to sit at 7.4%.
He said, “The economy is expected to rebound by 7.4% in 2021, from consecutive 2 year downturn.”
“Due to predicted normal to above-normal rainfall season, and the improved access and timely financing of agriculture, the timely provision of farming inputs to vulnerable households under Pfumvudza/Intwasa model, the enhanced irrigation support and support towards mechanisation of agricultural activities, agriculture and forestry is expected to grow by 11.3%.
“Electricity and water is expected to grow by 18.8% due to increased water allocation to Kariba Hydro power station, continued rehabilitation and maintenance of thermal power stations, additional power from solar power stations and the completion of 2 additional dams, Causeway and Marovanyati.
“Favourable international prices and planned expansion programmes aimed at increasing production by miners will see the mining and quarrying grow by 11.0% in 2021.
“Distributions, Hotels and Restaurants will also grow by 5.7% due to increase in domestic demand as income improves performance of domestic tourism as economy gradually reopens and prioritises domestic tourism and later regional and International tourism,” said the Minister.
The growth in the sectors above together with the manufacturing sector that has an estimated growth of 6.5%, Construction 7.2%, Transport and Communications and Government Services both with an expected growth of 7.1% and 6.2% respectively, will feed the downstream industries and revive jobs that were lost due to the Covid-19 Pandemic.