Mthuli Ncube gets tough on domestic debt

The era of reckless spending by line ministries and public entities is over as Government has started operationalising the Public Debt Management Regulations, 2019 that are meant to curb the country's ballooning national debt as well as ensure that approved loans and guarantees do not exceed the annual borrowing ceiling, Business Weekly reported.

The regulations among other things are also designed to ensure that the overall increase in debt is sustainable. Zimbabwe currently has a ballooning domestic and external debt hovering around US$17 and $18 billion according to official statistics, a result of a combination of factors spanning from perennial budget deficits to fiscal indiscipline.

Meanwhile, government is seeking R9 billion (about US$635,8 million) loan or bond from the South African private sector, in a bid to capacitate the local industry, which is struggling to ramp up production due to a range of issues particularly a lack of finance.

Once the negotiations are concluded positively, the local manufacturing sector, especially firms with a bias towards the export market, would obtain the funds to procure raw materials and equipment. It is a revolving facility that is being crafted.

Finance and Economic Development Minister Professor Mthuli Ncube, was recently in South Africa, where he met investors at First Rand to mobilise support for the syndicated.

More to follow...