News / Africa

Zimbabwe's Economy on Recovery Path

Zimbabwe's Finance Minister says his country’s economy is on the path to recovery after decades of decline and will meet all its financial obligations for this year. .

Cars speed along in Harare, Zimbabwe’s capital city.  The formation of a coalition government in 2009 by President Robert Mugabe and Prime Minister Morgan Tsvangirai has led to the sound of constant activity in the city.

There is life!

Before, the city was almost dead as was the country’s economy.  

Tendai Biti was appointed Zimbabwean Finance Minister in 2009 when almost every commodity was in short supply.  Inflation was running wild then, but is now the lowest in the southern Africa region.

“By the end of the year we would have reduced our primary balance to zero, in other words our books will balance and we are not going to carry a deficit in 2013," Biti says when speaking of 2012. "For a finance minister this is pleasing because we are eating what we are killing. ”

That zero primary balance only applies to domestic debt. The African country has a $10 billion foreign debt.

In September, the International Monetary Fund (IMF) raised concerns over the failure by Sudan, Somalia and Zimbabwe to honor their commitments to pay their financial debts.

The finance minister says he would ensure the foreign debt remains in check and he will not commit where the country cannot sustain the obligation.

“It is bad economics and we do not practice bad economics,” Biti says.

One of the big economic problems facing the country is the funding of elections and a constitutional referendum in 2013.

Recently Biti told journalists that funding of the polls was giving him a headache as 2012 ends.

“2013, the biggest challenge is funding the elections and the referendum," says Biti. "t is clear that our resources are not going to be enough. It is quite clear that the international community has to come in for assistance.”

The Zimbabwe Electoral Commission wants nearly $200 million for the elections and the referendum.

African leaders want a new constitution in Zimbabwe to ensure free and fair elections. On several occasions President Mugabe has threatened to hold elections under the current constitution.

Lovemore Madhuku, a professor from the University of Zimbabwe, thinks time is running out for President Mugabe who turns 89 years old in February. Mr. Mugabe will be the Zanu PF party presidential candidate running against Movement for Democratic Change (MDC) candidate, Prime Minister Tsvangirai who is 60 years old.

“If we delay elections four, five months after that [February 2013], the mentality would be that the president is now 90 years. And those kind of things would work against him, I see an election coming as soon as possible more like around end of March," says Madhuku. "If he does not do that means he has totally failed to have an election according to his own plan and the MDC would have won there. He might not want that.”

Zimbabwe’s agricultural-based economy took a nosedive in early 2000 when Mugabe embarked on a chaotic and violent land reform exercise targeting white commercial farmers.  But now the economy has improved since the creation of the unity government in 2009 but it still has to figure out a way to pay for the constitutional referendum and elections planned for 2013.

You May Like

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. More

Video Sudan School Becomes Target of Aerial Attacks

Dropout rate at an all-time high in South Kordofan state because many schools have been destroyed during 3-year civil war More

Tennessee Songbirds Fly Coop Long Before Tornadoes Arrive

Researchers say birds apparently alerted to danger by sounds at frequencies below range of human hearing More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Sudan School Becomes Target of Aerial Attacksi
X
December 19, 2014 12:45 AM
The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. VOA reporter Ayaz Gul visited the devastated school and attended the funeral of the principal who courageously tried to save her students from the deadly attack.
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Putin Says Russian Economy Will Emerge Stronger

Russian President Vladimir Putin has said his country's sinking economy will not only recover but also become stronger, despite falling oil prices and Western sanctions over Ukraine. VOA's Daniel Schearf reports.
Video

Video Detained Turkish Journalists Follow Teachings of US-Based Preacher

The Turkish government’s jailing of critical journalists has sparked international condemnation and is being seen as an effort to undermine the followers of an ailing Turkish preacher based in the United States. VOA religion reporter Jerome Socolovsky has more.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.

All About America

AppleAndroid