(Ecofin Agency) - Zimbabwean President Emmerson Mnangagwa (pictured) initiated a plan to revive the economy in this pandemic without foreign assistance. The plan consists of 18 billion Zimbabwean dollars (about $48.7 million), representing 9% of the country’s GDP or 28.6% of the 2020 national budget.
Part of the investment ($1.3 million) is directed towards micro, small and medium businesses and the informal sector. About $8.2 million will help increase production in all economic segments in response to the pandemic. Another $2.7 million will be invested in the health and social security sector to equip hospitals and grant a subsidy to vulnerable people.
The agriculture sector will receive about $16.5 million to cope with food deficit. The President says that while most countries will continue to receive funding from multilateral lenders such as the IMF, World Bank and AfDB, Zimbabwe will unfortunately not benefit.
According to IMF projections, Zimbabwe's economic growth is expected to fall at -7.4%, above the -8.3 rate recorded in 2019.