Author: TSA Press

President
Emmerson
Mnangagwa
told
the
conference
that
Zimbabwe
is
negotiating
a
Staff
Monitored
Program
(SMP)
with
the
International
Monetary
Fund.

Securing
an
SMP
would
set
the
stage
for
required
policy
reforms,
African
Development
Bank
(AfDB)
President
Akinwumi
Adesina
told
the
conference.

“That
is
the
key,”
he
said,
adding
that
AfDB
stood
ready
to
offer
financial
support
to
cushion
Zimbabwe’s
economy
against
potential
adverse
effects
of
reforms.

Adesina
said
the
AfDB
also
had
money
available
from
a
special
fund
to
help
settle
Zimbabwe’s
arrears.
He
did
not
provide
any
figures.

Finance
Minister
Mthuli
Ncube
said
timelines
would
become
clear
by
mid-2025,
once
Zimbabwe
secured
bridge
financing
commitments
from
lenders
to
help
clear
the
arrears.

Analysts
say
paying
off
arrears
is
essential
for
an
economy
that
currently
cannot
even
access
money
from
the
IMF
–
the
lender
of
last
resort.

That’s
after
clearance
was
given
by
the
Sudanese
government.

“The
issue
of
arrears
is
a
major
albatross
around
our
neck,”
said
Prosper
Chitambara,
a
Harare-based
independent
economist.

“Once
the
arrears
are
cleared
it
will
be
cheaper
to
borrow
and
easier
to
attract
investment.”

UNSUSTAINABLE
SITUATION

Getting
on
track
with
bilateral
creditors
–
and
clearing
arrears
with
the
AfDB,
the
World
Bank
and
the
European
Investment
Bank
–
is
necessary
to
unlock
funding
for
Zimbabwe,
once
a
regional
breadbasket
that
now
struggles
to
feed
its
own
people.

“The
IMF
is
currently
precluded
from
providing
financial
support
to
Zimbabwe”
due
to
an
unsustainable
debt
situation
and
external
arrears,
an
IMF
spokesperson
said.

The
IMF
SMP
that
Zimbabwe
is
targeting
does
not
include
financial
assistance
or
require
approval
by
the
Fund’s
executive
board.

But
government
officials
say
it
would
help
Zimbabwe
demonstrate
a
return
to
sound
economic
policies.
The
government
already
missed
its
initial
goal
to
have
an
SMP
in
place
by
April,
as
well
as
a
second
deadline
last
month.

This
has
limited
IMF
engagement
to
technical
assistance,
such
as
budget
preparation.

DEBT
AND
DEFAULT

The
United
Nations
estimates
24
out
of
Africa’s
35
low-income
countries
are
at
high
risk
of
debt
distress,
and
since
2020,
Zambia
and
Chad
have
finalised
debt
reworks.
Ghana
is
wrapping
up
its
own
debt
rework
and
Ethiopia
is
in
the
midst
of
a
restructuring.

But
Zimbabwe
is
no
ordinary
default.
While
45%
of
its
burden
is
outstanding
debt,
the
rest
is
arrears
and
penalties,
according
to
a
2023
government
presentation.

The
Africa
Legal
Support,
an
AfDB
facility
that
helps
countries
deal
with
debt
distress,
is
paying
for
two
firms
–
the
Global
Sovereign
Advisory
Company
and
law
firm
Kepler-Karst
–
to
help
advise
the
government,
Ncube
said
ahead
of
the
conference.

Zimbabwe
has
only
been
paying
token
amounts
to
debtors,
including
16
bilateral
creditors,
Ncube
said,
but
gave
no
further
details.

Minor
Hotels
will
make
its
Zimbabwe
debut
with
the
Dec.
1
opening
of
the Anantara
Stanley
&
Livingstone
Victoria
Falls
Hotel,
marking
the
group’s
seventh Anantara property
in
Africa
and
the
Indian
Ocean
islands.

The
16-suite
property
is
located
in
a
conservation
area
15
minutes
from
Victoria
Falls.
Each
suite
offers
flexible
double
or
twin
configurations,
with
two
sets
of
interconnecting
rooms
available
for
families.
The
property
features
a
gourmet
restaurant
serving
meals
in
the
dining
room,
terrace
or
gardens
plus
a
lounge
and
bar
offering
a
variety
of
beverages,
including
local
wines
and
craft
cocktails.
Guests
can
relax
at
the
garden
swimming
pool
with
shaded
loungers,
and
complimentary
WiFi
is
available
throughout
the
property.

Plenty
to
do

Activities
include
boat
trips
to
Devil’s
Pool,
ziplining
across
Batoka
Gorge,
helicopter
flights
and
Zambezi
River
sunset
cruises.
The
hotel
overlooks
an
active
waterhole
in
Victoria
Falls
Private
Game
Reserve,
where
guests
can
participate
in
game
drives
and
black
rhino
conservation
experiences.

The
opening
complements The
Royal
Livingstone
Victoria
Falls
Zambia
Hotel
by
Anantara,
creating
a
dual-destination
offering
across
the
Zambezi
River.
Minor
Hotels
will
further
expand
its
African
presence
with
the
mid-2025
opening
of
Anantara
Kafue
River
Tented
Camp
in
Zambia.

Minor
Hotels
currently
operates
27
properties
across
nine
African
countries
under
its
Anantara,
Avani,
NH
and
Elewana
Collection
brands.
The
group
manages
more
than
550
hotels
globally
across
56
countries.

Source:


Minor
Hotels
is
about
to
open
its
first
Zimbabwe
property:

Travel
Weekly

Minor
Hotels
will
make
its
Zimbabwe
debut
with
the
Dec.
1
opening
of
the Anantara
Stanley
&
Livingstone
Victoria
Falls
Hotel,
marking
the
group’s
seventh Anantara property
in
Africa
and
the
Indian
Ocean
islands.

The
16-suite
property
is
located
in
a
conservation
area
15
minutes
from
Victoria
Falls.
Each
suite
offers
flexible
double
or
twin
configurations,
with
two
sets
of
interconnecting
rooms
available
for
families.
The
property
features
a
gourmet
restaurant
serving
meals
in
the
dining
room,
terrace
or
gardens
plus
a
lounge
and
bar
offering
a
variety
of
beverages,
including
local
wines
and
craft
cocktails.
Guests
can
relax
at
the
garden
swimming
pool
with
shaded
loungers,
and
complimentary
WiFi
is
available
throughout
the
property.

Plenty
to
do

Activities
include
boat
trips
to
Devil’s
Pool,
ziplining
across
Batoka
Gorge,
helicopter
flights
and
Zambezi
River
sunset
cruises.
The
hotel
overlooks
an
active
waterhole
in
Victoria
Falls
Private
Game
Reserve,
where
guests
can
participate
in
game
drives
and
black
rhino
conservation
experiences.

The
opening
complements The
Royal
Livingstone
Victoria
Falls
Zambia
Hotel
by
Anantara,
creating
a
dual-destination
offering
across
the
Zambezi
River.
Minor
Hotels
will
further
expand
its
African
presence
with
the
mid-2025
opening
of
Anantara
Kafue
River
Tented
Camp
in
Zambia.

Minor
Hotels
currently
operates
27
properties
across
nine
African
countries
under
its
Anantara,
Avani,
NH
and
Elewana
Collection
brands.
The
group
manages
more
than
550
hotels
globally
across
56
countries.

Source:


Minor
Hotels
is
about
to
open
its
first
Zimbabwe
property:

Travel
Weekly

HARARE
–
Zimbabwe’s
president
hosted
creditors
and
finance
executives
on
Monday
to
discuss
ambitious
goals
to
clear
debt
arrears
and
restructure
$12.7
billion
in
external
debt,
as
the
country
aims
to
eventually
tap
international
capital
markets
for
the
first
time
in
more
than
two
decades.

The
Southern
African
nation’s
debt
pile
accounts
for
81%
of
gross
domestic
product,
and
clearing
it
will
be
a
tough
challenge
for
a
country
that
has
faced
numerous
financial
crises
in
recent
decades,
from
repeated
bouts
of
hyperinflation
to
multiple
unsuccessful
attempts
to
launch
new
currency
regimes.

President
Emmerson
Mnangagwa
told
the
conference
that
Zimbabwe
is
negotiating
a
Staff
Monitored
Program
(SMP)
with
the
International
Monetary
Fund.

Securing
an
SMP
would
set
the
stage
for
required
policy
reforms,
African
Development
Bank
(AfDB)
President
Akinwumi
Adesina
told
the
conference.

“That
is
the
key,”
he
said,
adding
that
AfDB
stood
ready
to
offer
financial
support
to
cushion
Zimbabwe’s
economy
against
potential
adverse
effects
of
reforms.

Adesina
said
the
AfDB
also
had
money
available
from
a
special
fund
to
help
settle
Zimbabwe’s
arrears.
He
did
not
provide
any
figures.

Finance
Minister
Mthuli
Ncube
said
timelines
would
become
clear
by
mid-2025,
once
Zimbabwe
secured
bridge
financing
commitments
from
lenders
to
help
clear
the
arrears.

Analysts
say
paying
off
arrears
is
essential
for
an
economy
that
currently
cannot
even
access
money
from
the
IMF
–
the
lender
of
last
resort.

“The
issue
of
arrears
is
a
major
albatross
around
our
neck,”
said
Prosper
Chitambara,
a
Harare-based
independent
economist.

“Once
the
arrears
are
cleared
it
will
be
cheaper
to
borrow
and
easier
to
attract
investment.”

Getting
on
track
with
bilateral
creditors
–
and
clearing
arrears
with
the
AfDB,
the
World
Bank
and
the
European
Investment
Bank
–
is
necessary
to
unlock
funding
for
Zimbabwe,
once
a
regional
breadbasket
that
now
struggles
to
feed
its
own
people.

“The
IMF
is
currently
precluded
from
providing
financial
support
to
Zimbabwe”
due
to
an
unsustainable
debt
situation
and
external
arrears,
an
IMF
spokesperson
said.

The
IMF
SMP
that
Zimbabwe
is
targeting
does
not
include
financial
assistance
or
require
approval
by
the
Fund’s
executive
board.

But
government
officials
say
it
would
help
Zimbabwe
demonstrate
a
return
to
sound
economic
policies.
The
government
already
missed
its
initial
goal
to
have
an
SMP
in
place
by
April,
as
well
as
a
second
deadline
last
month.

This
has
limited
IMF
engagement
to
technical
assistance,
such
as
budget
preparation.

The
United
Nations
estimates
24
out
of
Africa’s
35
low-income
countries
are
at
high
risk
of
debt
distress,
and
since
2020,
Zambia
and
Chad
have
finalized
debt
reworks.
Ghana
is
wrapping
up
its
own
debt
rework
and
Ethiopia
is
in
the
midst
of
a
restructuring.

But
Zimbabwe
is
no
ordinary
default.
While
45%
of
its
burden
is
outstanding
debt,
the
rest
is
arrears
and
penalties,
according
to
a
2023
government
presentation.

The
Africa
Legal
Support,
an
AfDB
facility
that
helps
countries
deal
with
debt
distress,
is
paying
for
two
firms
–
the
Global
Sovereign
Advisory
Company
and
law
firm
Kepler-Karst
–
to
help
advise
the
government,
Ncube
said
ahead
of
the
conference.

Zimbabwe
has
only
been
paying
token
amounts
to
debtors,
including
16
bilateral
creditors,
Ncube
said,
but
gave
no
further
details.

Mubaiwa,
who
suffers
from
lymphodema,
argued
that
her
trial
had
been
delayed
and
that
her
health
now
prevented
her
from
giving
instructions
to
her
lawyer.

However,
the
magistrate
ruled
that
Mubaiwa
was
to
blame
for
the
delays.

HARARE
–
Finance
minister
Mthuli
Ncube
on
Thursday
announced
a
fast
food
fat
tax,
a
raid
on
income
from
betting
and
new
measures
to
tax
small
companies
as
the
cash-strapped
government
turned
to
even
more
creative
ways
to
boost
revenues.

Punters
will
see
10
percent
of
their
winning
bets
withheld
as
tax,
Ncube
told
MPs
in
the
National
Assembly
while
presenting
the
2025
national
budget
statement.

“Honourable
Members
would
be
aware
that
betting
is
popular
in
nature,
as
indicated
by
the
proliferation
of
sports
betting
houses
countrywide,”
Ncube
said.

“Sports
betting
punters
receive
income
from
winnings,
which
is
currently
not
taxable
under
personal
income
tax.
To
include
punters
in
the
tax
base,
I
propose
to
introduce
a
10
percent
withholding
tax
on
gross
winnings
of
sports
betting
punters,
with
effect
from
January
1,
2025.”

Ncube
announced
a
reduction
to
his
special
surtax
on
beverages’
sugar
content
announced
in
February,
but
announced
new
taxes
on
fast
foods
to
promote
healthy
living.

He
told
MPs:
“The
government,
in
February
2024,
introduced
a
special
surtax
of
US$0.001/g
on
added
sugar
contained
in
specified
beverages.
The
tax
is
applied
uniformly
on
both
ready
to
drink
and
cordials
or
concentrated
beverages.

“Representations
from
manufacturers
indicate
that
cordials,
due
to
their
concentrated
nature,
have
a
higher
sugar
content,
hence,
attract
a
higher
effective
tax
as
compared
to
ready-to-drink
beverages.
Common
practice,
however,
requires
that
the
tax
be
based
on
the
sugar
content
of
the
diluted
product.

“In
order
to
create
a
level
playing
field
between
ready-to-drink
and
cordials,
I
propose
to
review
the
Special
Surtax
on
Beverages’
Sugar
Content
on
cordials
from
US$0.001/g
to
US$0.0005/g,
with
effect
from
January
1,
2025.”

Ncube
said
“highly
processed
food
has
been
identified
as
one
of
the
factors
responsible
for
the
prevalence
of
obesity
and
associated
non-communicable
diseases,
hence,
the
need
for
government
to
promote
responsible
consumption
of
such
foods.”

A
fast
foods
tax
of
0.5
percent
on
the
sales
value
will
come
into
effect
from
January.
The
tax
will
be
imposed
on
sales
of
pizza;
burgers
and
hot
dogs;
shawarma;
French
fries;
chicken;
doughnuts
and
similar
products;
and
tacos.

“It
is
envisaged
that
the
proposed
tax
will
go
a
long
way
in
encouraging
operators
to
adopt
culinary
that
promote
healthy
eating,”
Ncube
said.

The
finance
minister
is
also
squeezing
the
informal
sector
to
contribute
taxes
–
from
small
grocery
shops,
hardware
operators
to
boutiques.

He
said:
“A
survey
into
the
operations
of
selected
enterprises
from
the
emerging
sector
shows
that
a
number
of
operators
are
engaged
in
significant
economic
activities,
hence,
qualify
to
contribute
to
the
fiscus
through
personal
and
corporate
income
taxes,
as
opposed
to
presumptive
tax.

“Notwithstanding
that
the
beneficial
owners
or
directors
of
such
companies
can
maintain
books
of
accounts,
operators
deliberately
conceal
records
from
the
tax
administrator,
under
the
pretext
that
such
operators
do
not
have
capacity
to
keep
records,
which
is
tantamount
to
tax
avoidance
and
evasion.”

He
said
he
would
be
prescribing
for
mandatory
registration
for
corporate
and
personal
income
tax
fabric
merchandisers;
clothing
merchandisers/boutiques;
spare
parts
dealers;
car
dealers;
grocery
and
kitchenware
merchandisers;
hardware
operators
and
lodges.

“I
propose
that
the
above-mentioned
operators
be
mandated
to
regularise
registration
of
their
operations
with
the
Zimbabwe
Revenue
Authority,
transact
through
point-of-sale
machines
and
maintain
records
of
all
transactions
by
January
1,
2025.”

Ncube
said
he
would
empower
ZIMRA
to
temporarily
close
businesses
which
fail
to
adhere
to
the
requirements
including
failure
to
register
for
tax
purposes
until
such
registration
and
payment
of
applicable
taxes
are
completed.

Small
businesses
failing
to
comply
will
be
compelled
to
pay
corporate
tax
of
between
US$9,000
up
to
US$15,000
per
quarter
in
the
case
of
hardware
stores.

Individuals
who
converted
residential
properties
to
business
properties
will
now
be
subject
to
rental
income
tax
at
a
rate
of
25
percent,
he
said.
Any
company
or
organisation
using
rented
premises
will
be
compelled
to
disclose
to
ZIMRA
the
rental
expense,
the
location
and
owner
of
the
property
for
purposes
of
rental
income
tax.

Proposing
a
freeze
on
government
recruitment,
Ncube
said
the
2025
allocation
for
employment
costs
of
ZiG
152.6
billion
or
56.4
percent
of
revenue
was
now
above
the
fiscal
rule
threshold
of
containing
employment
costs
at
maximum
of
50
percent
of
revenue.

“To
address
this
unsustainable
position,
revenue
enhancement
measures
will
be
implemented,
whilst
also
limiting
the
recruitment
of
additional
personnel
only
to
critical
sectors
such
as
health
and
education.
The
rationalisation
exercise
will
also
benefit
from
the
recent
Job
Evaluation
Exercise,
which
was
undertaken
by
the
Public
Service
Commission,
with
the
aim
to
have
a
fit
for
purpose
and
professional
civil
service,
with
the
capacity
to
deliver
quality
public
services,”
he
said.

In
rare
good
news,
Ncube
said
he
was
revising
the
tax
bands
following
a
recent
devaluation
of
the
ZiG
“to
provide
relief
to
taxpayers.”

The
new
tax-free
threshold
is
ZiG
2,800
per
month.
Employees
earning
between
ZiG
2,801
and
ZiG
8,400
will
pay
20
percent
tax
on
income,
rising
to
40
percent
for
workers
earning
more
than
ZiG
84,000.

The
finance
minister
said
revenues
during
2025
are
expected
to
top
US$7.5
billion
against
expenditures
of
US$7.7
billion.

He
expects
Zimbabwe’s
economy
to
grow
by
6
percent
in
2024,
from
2
percent
this
year.

Economist
Tinashe
Murapata
poured
cold
water
on
Ncube’s
growth
projects.

“He
argues
that
Zimbabwe
will
be
one
of
the
fastest
growing
economies
in
the
world
and
yet
at
the
same
time
introduces
hefty
consumer
taxes,”
Murapata
said.

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