Zimbabwe’s Treasury has renewed interest in capital projects after spending over $300 million on new and existing facilities since January.
January to May this year has seen improved revenue collections by the state enabling Treasury to experience a slight rise in fiscal space.
The Permanent Secretary in the Ministry of Finance and Economic Development, Mr Willard Manungo confirmed the trend has therefore seen Treasury committing $300 million on capital projects such as energy, roads, infrastructure, ICT’s, water, dams, sanitation, social amenities, among others.
“The rise in revenue collections is a welcome development and we hope it can be sustained for the betterment of the nation,” he said.
While Treasury has been devoting 80 percent of revenues on employment costs, a company judicial manager Dr Wesley Sibanda said the ability of the private firms to increase cooperation on public projects is being hindered by foreign currency challenges.
“We are really being encouraged to work with the government but limitations on forex are a key cause for concern,” said Dr Sibanda.
Lack of policy clarity on projects in the past few years has also constrained the private sector efforts on public facilities, said a chartered accountant Mr Raymond Bilimayi.
“We hope sustainability of projects can be facilitated as Zimbabwe moves towards the revival of this economy,” he said.
According to the 2018 national budget, revival of projects is important in achieving a 4.5 percent economic growth rate this year.