by Grace Chekai
Government is satisfied with the progress on economic and structural reforms as stipulated in the Transitional Stabilisation Program (TSP), despite the pressures from the COVID-19 pandemic, a cabinet minister has said.
Presenting the TSP progress report last week in Harare, Minister of Finance and Economic Development, Professor Mthuli Ncube said, “Notwithstanding pressures from COVID-19 pandemic, Government remain prioritising on-going critical infrastructure projects in roads, energy and water and sanitation.
“Treasury has ring-fenced resources towards these projects, critical for enabling the doing business environment.”
Minister Ncube said the 2020 Budget targeted to raise ZWL$25 billion for infrastructure development. As at end of July 2020, ZWL$6.6 billion had been invested and the remainder of ZWL$18 billion would be raised and injected during the last half of 2020.
He said the construction of Hwange 7 and 8 expansion project together with the rehabilitation of other thermal power stations was on-going so as to ensure reliable energy supply to the country.
The complete rehabilitation of units 7 and 8 at Hwange, will add 600 MegaWatts (MW) to the national grid. This project is now 45 percent complete, according to Minister Ncube.
Other energy projects, which are on-going, include the Zambezi Gas and Coal project. This project will add 750 MW to the national grid upon completion. There is also the Western Areas power project, which will add 600 MW, Jinan (600 MW), Tsingshan (100 MW) and Zimbabwe Zhongxib Electrical Energy (430 MW).
Urban households require 1700 MW of electricity in Zimbabwe. Currently, the country’s power utility is providing about 1000 MW to the urban households. The completion of these projects will cover the prevailing deficit and also reduce the country`s import bill.
Government is also expanding the Robert Gabriel Mugabe (RGM) International Airport.
The New Parliament Building in Mt Hampden is also on-going although its construction had been slowed by COVID-19, as most of the engineers of the project are from China and some cannot travel.
Minister Ncube also mentioned the construction of roads, in particular the Harare-Beitbridge Highway Rehabilitation and Expansion, as well as the Mutare-Harare-Gweru-Bulawayo dualisation, Karoi-Binga roads. Chiredzi-Tanganda road was completed, whilst the Makuti-Chirundu stretch is still under construction. These projects are being bankrolled through loan facilities secured from China Eximbank and other financial institutions.
Prof Mthuli said these road` projects were on-going and that they would enable the ease of doing business.
He also said urban and rural roads were also under refurbishment.
“The rehabilitation of urban roads is being funded by ZINARA, whilst in rural areas it is the DDF,” he said.
Economic analysts have commended Government for the positive economic reforms, saying that this will definitely have ripple effects on local industries as well as on external investors.
Last year, the Technical Working Groups, Country Coach on ease of Doing Business, Eric Zinyere in an interview with Equity Axis on the side-lines of the World Bank Group Stakeholder Breakfast said Zimbabwe was on the right track in terms of reforms meant to improve the business environment.
Zimbabwe was last year ranked 155 out of 190 countries by the World Bank on significant progress on ease of doing business indicators.
