22 July 2017
Home Page About Us Services Publications Links Forum
VIEWS
TACY'S MEMO
Opinion
Analysis
NEWS
Mining & Exploration
Rough Trade
Polished Wholesale & Manufacturing
Retail
Governmental
Labs & Trade and Industry Bodies
Branding & Marketing
Legal
Financial
Diamond Pipeline
Statistics
ARCHIVE NEWS - PRE 2008
People
Regional Issues
Created Diamonds
Civil Society
Ethics
Development Issues
Conflict Diamonds
Auctions
Kimberley Process
DIAMOND INTELLIGENCE BRIEFS
Diamond Intelligence Briefing 2017
Diamond Intelligence Briefing 2016
Diamond Intelligence Briefing 2015
Diamond Intelligence Briefs 2015
Diamond Intelligence Briefs 2014
Diamond Intelligence Briefs 2013
Diamond Intelligence Briefs 2012
Diamond Intelligence Briefs 2011
Diamond Intelligence Briefs 2010
Diamond Intelligence Briefs 2009
Diamond Intelligence Briefs 2008
Diamond Intelligence Briefs 2007
Diamond Intelligence Briefs 2006
Diamond Intelligence Briefs 2005
Diamond Intelligence Briefs 2004
Diamond Intelligence Briefs 2003
Diamond Intelligence Briefs 2002
Diamond Intelligence Briefs 2001
Diamond Intelligence Briefs 2000
Diamond Intelligence Briefs 1999
Diamond Intelligence Briefs 1998
Diamond Intelligence Briefs 1997
Diamond Intelligence Briefs 1996
Diamond lntelligence Briefs 1995
Diamond lntelligence Briefs 1994
Diamond Intelligence Briefs 1993
Diamond Intelligence Briefs 1992
Diamond Intelligence Briefs 1991
Diamond lntelligence Briefs 1990
Diamond lntelligence Briefs 1989
Diamond lntelligence Briefs 1988
Diamond lntelligence Briefs 1987
Diamond lntelligence Briefs 1986
Diamond Intelligence Briefs 1985
Diamond Intelligence Briefs 1984
TACY RESEARCH
Tacy's Reports
Tacy's Research
Tacy's Presentations
RESOURCE LIBRARY
Company Reports
Kimberley Process
NGO Reports
Government Reports
Conflict Diamonds
Producer Marketing Documentation
Trade Organization Guidance
Supplier of Choice
Legal Issues
LEGAL
Laws and Regulations
Court Documents
Anti-Money Laundering
Best Practice Principles
Compliance
Competition
Banking
FINANCE
Basel II
Compliance
Decisions
PICTURES
Botswana
De Beers Archive Pictures
Conference Photos
India
Zimbabwe
SITE MAP
MY ARTICLES
created by CyberServe
 Email this      Printer-Friendly Format       Respond to this Article
IMF URGES EXTENSIVE REFORMS FOR ZIMBABWE
09 July 2017
Following the yearly bilateral discussions which took place in early May this year between the International Monetary Fund (IMF) and the Zimbabwe representatives (including senior government officials, members of parliament, representatives of the private sector, civil society and development partners), the IMF has now published its Staff Report for the 2017 Article IV Consultation on Zimbabwe.

The report notes that Zimbabwe's economy is facing difficulties, with high expenditure levels despite what it termed "subdued revenues".

The report mentions that some progress has been made on structural reforms, noting, though that these have been slow, particularly with regard to implementation of laws applicable to non-indigenous investors, improvements in the functioning of state-owned enterprises, and upgrades in public financial management, governance and accountability, where reform progress has been limited.

The IMF report warns that "With limited access to foreign inflows, the ensuing fiscal imbalances have become unsustainable, and are being financed by rising domestic borrowing. The expansionary fiscal stance, curtailed net capital flows, and declining investor confidence have resulted in cash shortages."

"Growth this year is expected to be supported by a strong performance in agriculture mainly due to exceptional rains. However, economic activity in the medium term is projected to remain subdued, pending adjustment and reform that tackle the structural challenges and enable the economy to restore fiscal and external sustainability and achieve its growth potential."

The IMF report stresses the urgency of structural reforms and the need to create a conducive environment for private-sector-led growth. The report also calls for "...effective implementation of reforms to provide a level playing field for domestic and foreign actors. In mining, for example, this would entail making all leases public, and avoiding contract negotiations on a case-by-case basis that depart from the established legal principles. .... Uncertainties about non-indigenous investors' options need to be eliminated by implementing the indigenization policy in a fair and measured way," says the report, lamenting the delay of "...reforms aimed at fostering expenditure discipline, strengthening transparency in the mining sector, improving the business environment, restoring confidence in the financial sector, and clarifying the indigenization policy to encourage investment."

"...To complement efforts to improve governance, steps should be taken to criminalize acts of corruption in line with the United Nations Convention against Corruption, strengthen the Zimbabwe Anti-Corruption Commission, and publish comprehensive asset declarations of high-level officials," notes the IMF report.

The IMF expects Zimbabwe to have a moderate GDP growth of around 2.5 to 3.0 percent in 2017, while inflation is projected to increase to around 7 percent by the end of the year.
   Back»