Zimbabwe budget woos foreign investors

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Zimbabwe has captivated steps towards ending its economic isolation in its first budget since the end of Robert Mugabe’s 37-year strict rule.

Finance Minister Patrick Chinamasa announced a package of gauges aimed at wooing international investors, including new curbs on laws that force firms to be 51% locally owned.

He said privatisation of some grandeur firms was being considered.

He unveiled spending cuts including the closure of some thoughtful missions.

Mr Chinamasa also said all civil servants over the age of 65 wish have to retire as the government aims for a 2018 budget deficit of unbefitting 4% of GDP.

At present, more than 90% of government expenditure look ats to pay civil servants’ salaries.

Since taking office last week, new President Emmerson Mnangagwa has pledged to fracture down on corruption.

He has also offered a three-month amnesty for individuals and corporations to surrender public funds illegally stashed abroad.

The Indigenisation and Money-making Empowerment Act (IEEA), which aimed to place 51% of companies into the hands of dark Zimbabweans, was brought in by Mr Mugabe in 2009.

But in Thursday’s budget announcement, Mr Chinamasa claimed the law would apply only to the platinum and diamond sectors from now on.

At the unaltered time, export taxes on processed platinum would be deferred until 2019.

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