Zim govt targets increasing savings

The government is crafting policies to increase savings within the economy by ensuring that banks offer facilities at affordable rates.

The increase in savings is critical in facilitating the growth of the economy to the extent that treasury is also in the process of coming up with strategies aimed at ensuring that the financial sector plays a critical role in attracting deposits.

While monetary authorities have revealed that the banking sector is out of viability problems and safe for investments, the Minister of Finance, Patrick Chinamasa said a rise in savings will contribute to positive real economic growth rates.

"The rise in savings is really critical because this economy actually needs savings to grow and achieve set projections," he said.

Since 2010, savings within the economy have been negative, averaging 11 percent of the gross domestic product (GDP) but market watchers say intervention policies by the central bank will result in an improvement in domestic savings.

According to an economic research unit, there is also need for the government to boost savings and investment in order to facilitate a growth in the volume of export receipts.