Tobacco and reforms boost Zimbabwe economy
After years of sluggish growth, Zimbabwe’s economy is showing signs of recovering and will grow faster than expected according to the central bank’s latest statement.
The highest ever tobacco sales and economic reforms are just some of the reasons the central bank says this economy could be one of the continent’s best performers this year.
Initial projections of 4.5% have been revised upwards to just over 6%, but its not without challenges and risks.
Many had hoped the monetary policy statement would tackle the crippling foreign currency shortages and to an extent it did.
Among the measures are special accounts for foreign currency earners. Foreign truckers will now be forced to pay for fuel in hard currency.
The government will reduce its overdraft with the central bank, but authorities still face their biggest hurdle – raising public confidence that was lost under the previous government.
Most Zimbabweans are reluctant to keep their money in banks and this has contributed to cash shortages.
Cover photo: Zimbabwe has recorded its highest ever tobacco sales