Nqobile Bhebhe
FINANCE, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, believes the current economic growth has resulted in increased demand for imports of key raw materials, fuel and other consumables used in production.
Mthuli told parliamentarians on Wednesday in Bulawayo during a pre-budget seminar that imports increased from US$4.5 billion in 2019 to US$8.7 billion in 2023.
“The economic growth being experienced has resulted in increased demand for imports of key raw materials, fuel and other consumables used in production,” he said.
Merchandise imports increased by 4.4 percent from US$ 6.3 billion in the first nine months of 2023 to US$6.5 billion during the same period under review.
He said merchandise imports are expected to reach approximately US$9.3 billion by the end of 2025, reflecting a modest increase of 2.5 percent from the 2024 projection of US$9.1 billion.
Mthuli noted that secondary income inflows are anticipated to remain resilient and drive the current account with personal transfers expected to rise from US$2 485.3 million in 2024 to US$2 510.2 million in 2025.
“The country’s current account balance is expected to widen from a surplus of US$133.9 million in 2023 to a surplus of US$150.5 million in 2024 before further improving to US$255.9 million in 202,” he said.
According to Mthuli, Government seeks to reverse the trend where trade and exports receipts rely on a few unprocessed raw materials and low value-added products with very limited skills content.
He said diversifying the product range to sectors such as manufacturing will upscale Zimbabwe’s participation in regional and global value chains, increase trade in high value-added products, build economic resilience from shocks, provides more decent jobs, increases foreign exchange receipts and improves the quality of life of citizens.
The pre-budget seminar which ends on Sunday, is held in accordance with Section 28(5) of the Public Finance Management Act, which governs the control and management of public resources, ensuring transparency and accountability in the allocation of national funds.
