Zimbabwe Finance Minister, Mthuli Ncube, spoke to Trevor Ncube on the program “In conversation with Trevor”.
- Mthuli Ncube said he was surprised to be appointed by ED Mnangagwa. He said he was working in private equity and at Oxford.
- He was more concerned about relocation, first from SA to Tunisia, then to the UK and then to Switzerland.
- Ncube said the job demands someone that understands complexity.
- The surprise for him was the extend of the deficit when he first arrived.
- He was also surprised by the adversarial nature of politics in Zimbabwe’s parliament.
- Ncube says he found a deficit at Treasury, it was 11% of GDP. After the 2% tax, Treasury is now in a surplus position, the government of Zimbabwe can now pay civil servants salaries in time. He is monitoring travel and cutting out waste in other areas.
- Ncube says the surplus is being used for social protection and importation of grain, wheat and fixing roads.
- Ncube says he knows all the projects being finance across the country by district.
- He says he introduced the Zimbabwe dollar because fiscal policy was a risk to monetary policy. There was a need to have a monetary policy.
- Ncube said currency stabilization is the goal.
- He said there will be a formal interbank market.
- People with foreign currency in their Nostro Accounts will not lose it.
- Ncube says he knows the people behind the black market by law. They are not being arrested because what they are doing is not illegal.
- He will be privatizing 6 parastatals in 6 weeks, namely, GMB, IDC, Willowvale, Allied Timbers, ZMDC, POSB, NetOne and TelOne.
- The cause of power issues in Zimbabwe is the whether, resulting in low water levels at Kariba.
- The focus in future should be on renewable energy (Solar Energy).
- There is a forensic report from PWC about the happenings at ZESA.
- The tariffs are very low. There is need to increase the tariffs, there is no choice.
- Treasury has also paid all of ZESA’s local debts ( Government entities up to ZWL 20 Million and USD10 Million to ESKOM).
- Ncube says he would like to communicate more going forward.
Please watch the video above this post for more details.