Zimbabwe’s gov’t plans new investment laws & $1.8 B debt settlement by June

zim budget

Zimbabwe’s economy is projected to grow by 2.7 percent in 2016, despite its budget remaining flat at $4 billion.

Finance Minister Patrick Chinamasa said he expects revenues amounting to $3,85 billion,while the deficit will be financed through domestic borrowing.

The Southern African country is already saddled with an $8,3 billion debt. It however plans to clear $1.8 billion of those arrears by June 2016.

Delivering his budget speech in Harare, Chinamasa said exports are expected to increase from 3.4 billion this year to 3.7 billion.

The gold mining sector got a boost with a reduction in royalties from the current 7 percent to 3 percent.

With this, production is expected to increase from the projected 18 tonnes for 2015 to at least 24 tonnes in the new-year.

Chinamasa said new rules for compliance with indigenization regulations would be announced before the end of the year.

Zimbabwe is reviewing its investment laws to attract foreign direct investments.