By Davison Vandira
ECONOMIC Analysts have underscored the need for authorities to continue prioritising key sectors of the economy in the utilisation of the US$960 million International Monetary Fund Special Drawing Rights Funds availed to Zimbabwe on August 23 this year.
The immediate impact of the financial support from the IMF was to increase Zimbabwe’s foreign exchange reserves which are an important driver of macro-economic stability.
The availability of foreign currency will go a long way in buttressing the stability of domestic currency ahead of the second operational national budget in the implementation of the National Development Strategy One.
Economists are confident that monetary and Fiscal authorities, will keep their promise on the prudent use of these financial resources to support the social sectors namely health and education among others.
“This is an important and positive development indeed especially given the fact that this is not a loan. There is a need however to prioritize and allocate resources towards sectors that are productive and welfare enhancing,” said Dr Prosper Chitambara Development Economist.
“Welfare-enhancing economic growth expected to hit about 7,8 percent this year and an average of 5% under the NDS1, the SDR allocation is expected to play a critical role. The treasury is in the process of carrying out budget consultations for the 2022 national budget and this SDR, allocation is also expected to significantly boost the Zimbabwean economy which is recovering from the Covid-19 pandemic,” said Batanai Matsika Investment Manager.
As part of Zimbabwe’s economic reform and re-engagement agenda, the second Republic has made significant strides as it cleared its outstanding financial arrears with the IMF amounting to 108 million United States dollars.
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