300,504FansLike
227FollowersFollow
6FollowersFollow
FollowersFollow
906FollowersFollow
138SubscribersSubscribe

Zimbabwe experiencing major economic and humanitarian crisis with 2020 growth projected at near zero, IMF says in damning assessment

Although we are headquartered in Washington D.C. USA, our reporters and editors are working around the globe to cover what you care about. We invite you to donate to our fundraiser to help us keep our quality news free and available for all.

The International Monetary Fund (IMF) on Wednesday delivered a damning assessment of the Zimbabwean economy, saying the southern African nation was experiencing an economic and humanitarian crisis with 2020 economic growth projected at near zero.

“The economy contracted sharply in 2019, amplified by climate shocks that have crippled agriculture and electricity generation; the newly introduced ZWL$ has lost most of its value; inflation is very high; and international reserves are very low,” the Fund said in a statement received by TODAY NEWS AFRICA in Washington DC on Wednesday after the IMF Executive Board concluded its Article IV consultation with Zimbabwe On February 24, 2020.

“The climate shocks have magnified the social impacts of the fiscal retrenchment, leaving more than half of the population food insecure. With another poor harvest expected, growth in 2020 is projected at near zero, with food shortages continuing”.

[read_more id="2" more="Read full article" less="Read less"]

IMF said the new Zimbabwean government, which came to office following the 2018 elections, adopted an agenda focused on macro stabilization and reforms, supported by a Staff Monitored Program from the IMF, adopted in May 2019, but was now off-track as policy implementation has been mixed.

“Notable reforms include a significant fiscal consolidation that has helped reduce the monetary financing of the deficit, the introduction of the new domestic currency in February 2019, the creation of an interbank FX market, and the restructuring of the command agriculture financing model to a public-private partnership with commercial banks.

“However, uneven implementation of reforms, notably delays and missteps in FX and monetary reforms, have failed to restore confidence in the new currency. Reengagement with the international community continues to face delays,” IMF said.

It said the Zimbabwean government has yet to define the modalities and financing to clear arrears to the World Bank and other multilateral institutions, and to undertake reforms that would facilitate resolution of 1 Under Article IV of the IMF’s Articles of Agreement. The IMF holds bilateral discussions with members, usually every year.

“This continues to constrain Zimbabwe’s access to external official support. As a result, the authorities face a difficult balance of pursuing tight monetary policy to reduce very high inflation and prudent fiscal policy to address the macroeconomic imbalances and build confidence in the currency, while averting a crisis,” IMF said, adding that while the 2020 budget includes a significant increase in social spending, it is likely insufficient to meet the pressing social needs. Absent a scaling up of donor support, the risks of a deep humanitarian crisis are high.

To mitigate the crisis, Zimbabwe is required to make difficult policy choices.

IMF directors urged the authorities to make a concerted effort to ensure economic and social stability through the adoption of coordinated fiscal, monetary and foreign exchange policies, alongside with efforts to address food insecurity and serious governance challenges.

They emphasized the importance of reengagement with the international community to support efforts to achieve economic sustainability and address the humanitarian crisis.

[/read_more]

Simon Ateba
Simon Ateba
Based in Washington, District of Columbia, United States of America, Simon leads a brilliant team of reporters, freelance journalists, analysts, researchers and contributors from around the world to run TODAY NEWS AFRICA as editor-in-chief. Simon Ateba's journalistic experience spans over 10 years and covers many beats, including business and investment, information technology, politics, diplomacy, human rights, science reporting and much more. Write him: simonateba@todaynewsafrica.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Trending Now

300,504FansLike
227FollowersFollow
6FollowersFollow
1FollowersFollow
906FollowersFollow
138SubscribersSubscribe

JUST IN

Ramphosa urges world leaders to fight racism, grant Africa more Security Council seats, lift sanctions against Zimbabwe and Sudan and cancel continent’s interests on debt

African Union Chairperson, the President of South Africa, Cyril Ramaphosa, on Tuesday, urged the United Nations General Assembly to fight racism,...

More than 200,000 people have now died of COVID-19 in US, even as President Trump says coronavirus “affects virtually nobody”

More than 200,000 people have now died of COVID-19 in the United States, according to the Johns Hopkins University virus tracker,...

How the African Continental Free Trade Agreement can succeed

The President of the Nigerian Senate, Ahmad Lawan, seems to know exactly how the African Continental Free Trade Agreement can succeed....

Alleged Nigerian fraudster on FBI watchlist turns self in over $6m internet scam

The Nigerian Economic and Financial Crimes Commission, EFCC, has commenced the investigation of Felix Osilama Okpoh, an alleged fraudster on the watchlist...

Cybercriminals target South Africa, Kenya and Nigeria with millions of attacks in 2020, and the year is not over

South Africa, Kenya and Nigeria have already seen millions of cyberattacks in 2020 with three months to the end of the...

MOST POPULAR

IMF approves disbursement of additional $1 billion for Angola to respond to COVID-19 economic fallout

The International Monetary Fund (IMF) on Wednesday approved the disbursement of an additional $1 billion for Angola to respond to...

Damning report finds detainees in Iran were sexually abused and given electric shocks in gruesome post-protest crackdown

Iran’s police, intelligence and security forces, and prison officials have committed, with the complicity of judges and prosecutors, a catalogue of...

USAID awards millions of dollars to Washington State University to combat lethal livestock disease in East Africa known as East Coast Fever

The U.S. Agency for International Development (USAID) has awarded millions of dollars to Washington State University to combat a lethal livestock...

Ethiopia charges prominent opposition figure Jawar Mohammed with terrorism

As human rights organizations continue to warn that Prime Minister Abiy Ahmed is turning Ethiopia into a dictatorship, his administration on...

WHO and UNICEF sign 10-year partnership to promote mental health of children and adolescents

 A new partnership between WHO and UNICEF is calling for key actions in universal health coverage, mental health, emergencies and nutrition

Ramphosa urges world leaders to fight racism, grant Africa more Security Council seats, lift sanctions against Zimbabwe and Sudan and cancel continent’s interests on debt

African Union Chairperson, the President of South Africa, Cyril Ramaphosa, on Tuesday, urged the United Nations General Assembly to fight racism, grant Africa more Security Council seats, lift sanctions against Zimbabwe and Sudan, cancel the continent’s interests on debt and support the rollout of a comprehensive stimulus package for African countries.Mr. Ramaphosa, who was the first African leader...

Stay connected

[/read_more]

[read_more id="2" more="Read full article" less="Read less"]

Tweet
Share
WhatsApp
Reddit
Share