Zimbabwe Independent
19 February 2009
THE inclusive government formed last week faces a daunting task to stabilise the economic situation, revive social services and generally improve the living standards of the majority of people wallowing in poverty.
The Zimbabwe Independent looks at the challenges some ministries have to surmount to bring about stability.
Finance
Finance minister Tendai Biti has a Herculean task to restore confidence in the country’s flagging economy.
His ministry’s major task will be to reengage bilateral and multilateral financiers like the African Development Bank, the International Monetary Fund (IMF) and the World Bank (WB) to provide balance of payments support and lines of credit to kick-start the comatose economy.
With arrears close to US$500 million owed to the IMF and the WB, Biti and technocrats in his ministry have to convince the world of the country’s creditworthiness.
The ministry should come up with a robust repayment plan for what it owes the international community.
The Finance ministry should restore confidence in the financial sector that is currently in limbo after the introduction of multi-currencying.
Another immediate task for Biti is local resource mobilisation through the Zimbabwe Stock Exchange (ZSE) which resumed trading yesterday.
Trading on the bourse was suspended last November amid allegations by the Reserve Bank of insider deals, costing government billions of dollars in lost revenue from taxes.
Stockbrokers said Thursday there were still issues to be sorted out relating to multi-currency trading, revaluation of Zimbabwe-dollar-denominated stocks and synchronisation of foreign currency accounts.
Biti and RBZ governor Gideon Gono also have to resolve their differences over the financing of quasi-fiscal activities which have been blamed for fuelling inflation.
The Finance ministry also has to come up with a revised national Budget to finance new ministries created by the inclusive government and channel more money to social services to protect the poor.
Biti has to raise funds to deal with the current humanitarian crisis — the cholera outbreak and feeding over five million people facing starvation.
Education
The Ministry of Education headed by David Coltart and the Ministry of Higher education led by Stan Mudenge have somewhat similar challenges ahead of them.
Prolonged job actions from staff demanding better remuneration is just a microcosm of the total collapse of the country’s education system.
The revision of tuition fees at tertiary schools is also a major hurdle that Coltart and Mudenge will face amid outcries from parents and students demanding a slash in the recently announced fees.
Zimsec, the country’s examination board currently dogged by administrative constraints, requires urgent attention in restoring its lost credibility and integrity. With dollarisation in place parents could be forced to register with foreign examination boards.