Zimbabwe expects its economic growth to decline from 5.5% this year to 3.5% in 2024.
This is majorly due to an anticipated drought caused by El Nino, according to Finance Minister, Mthuli Ncube on Thursday.
The El Nino phenomenon is a natural climate occurrence where surface waters of the central and eastern Pacific get unusually warm.
This change in global weather patterns is anticipated to impact crop yields in the 2023/2024 farming season.
Ncube had also said that the deteriorating mineral commodities expenditure will significantly influence the economy’s growth.
According to Ncube’s explanation, fiscal reserves and tight monetary policy, coupled with a healthy current account position will serve to provide the necessary conditions for currency and price stability in 2024.
To boost revenue collection, he suggested hiking toll fees for the country’s busiest road. Additionally, there is a proposal to implement a tax on sugary drinks and establish a wealth tax.
Lastly, Ncube said that lithium miners should tender refinery plans by March 2024 to promote value addition.
It is important to highlight that Zimbabwe is the leading lithium producer in Africa.
