‘Leverage domestic resource mobilisation’

ZIMBABWE has been urged to leverage domestic resource mobilisation rather than rely on international financiers for funding, which normally results in unsustainable debt.

In a presentation at the recently held Zimbabwe Debt Conference, Zimbabwe Coalition on Debt and Development (ZIMCODD) programmes manager Mr John Maketo said developmental finance tends to compete with natural hazards such as floods, droughts and pandemics for funding.

As such natural disasters tend to receive most funds resulting in limited resources for developmental finance from international monetary institutions.

He said domestic resource mobilisation also assists the country in having self-determination and achieving economic independence as loans from financiers come with conditions attached to them.

“Domestic resource mobilisation means that we are looking at our resources, managing them in our way at our own pace and therefore we move towards economic independence,” said Mr Maketo.

“We also need to consider domestic resource management simply because we can do it, there is a consensus that Zimbabwe is a resource-based country.”

Mr Maketo said globally, Zimbabwe is the largest producer of lithium, platinum and other precious stones and the country should leverage those natural resources for development finance.

He said other ways of domestic resource mobilisation are broadening the tax base, closing tax leakages and fighting corruption.

According to the Ministry of Finance and Economic Development, Zimbabwe has unsustainable debt, which is estimated at US$16,7 billion as of the end of June 2022.

Of the above total, total Public and Public Guarantee debt, US$13,3 billion is external debt and US$3,5 billion is domestic debt.

The ministry also said the accumulation of external debt in payment arrears and penalties for the past two decades, which are now estimated at US$6,6 billion as of the end of June 2022 has become a concern.

ZIMRA

Zimra commissioner-general Mrs Regina Chinamasa told the Zimcodd delegates that to scale up resource mobilisation, Zimbabwe Revenue Authority (Zimra) is ensuring that proper revenue collection and working together with other stakeholders including law enforcement agents and Anticorruption Commission in fighting against corruption is intensified.

She said the revenue authority has a huge task of collecting revenue, restoration of fiscal balance and checking revenue leakages to feed into Vision 2030 of becoming an upper middle-income economy.

“Our mandate is to mobilise resources on behalf of the Government and advise on fiscal matters.

“Moving with that mandate, in terms of performance, we are chasing a target of Z$1, 6 trillion as it was reviewed from Z$809 billion and we have so far managed to collect Z$1, 2 trillion.”— chronicle.c.zw